General Electric Business Model Canvas

Design and test next-gen cores, materials, and architectures to push >15% fuel-burn reductions seen in modern turbofans, while improving durability and cutting NOx and CO2 intensity. Technology maturation advances through incremental rig, ground and flight tests, with testing programs spanning multiple stages. Certification packages are developed in parallel with FAA/EASA regulators to compress time-to-entry and de-risk certification.

Advanced Manufacturing scales precision components like blisks, blades, and combustors across GE’s factories to support GE Aerospace, which reported roughly $36.8 billion in 2024 revenue.

Deploying additive, automation, and digital twins has cut scrap and defects—industry and GE pilots report up to 40% reductions—lowering unit costs and lead times.

Global plants balance cost, quality, and resilience while supplier development programs drive throughput, compliance, and KPI improvements tied to on-time delivery and quality metrics.

GE's IP portfolio—thousands of patents in aerodynamics, materials, and combustion—underpins engine performance and fuel-efficiency gains. Proprietary design tools and simulation models accelerate R&D cycles, shortening development timelines by years. Comprehensive FAA/EASA certification data packages, often costing tens of millions USD and spanning 3–5 years, create high barriers to entry. Trade secrets secure manufacturing know-how.

A large bench of engineers, technicians, data scientists and field reps—supporting GE’s global operations of roughly 168,000 employees in 2024—drives execution across power, aviation and renewable businesses. Specialized certifications enable regulated work and compliance, while deep institutional knowledge boosts safety and reliability. Robust talent pipelines, including university partnerships and internal training, sustain future programs.

GE's engines (via the CFM LEAP family) deliver up to 15% better specific fuel consumption versus prior-generation CFM56, lowering fuel burn and cutting CO2 roughly proportionally (about 3.16 kg CO2 per kg jet fuel). Reduced fuel burn trims operating costs—fuel typically represents about 25% of airline operating expenses—boosting margins. Continuous hardware and software upgrades sustain efficiency over engine life. Efficiency gains translate directly into increased range or payload for operators.

High uptime delivers reliability and extended time-on-wing to minimize operational disruptions, supporting industry-standard dispatch reliability above 99.9%. Predictive maintenance analytics cut unscheduled events—GE reported double-digit reductions in AOG incidents through digital monitoring in 2024. Rapid parts logistics and field support restore service often within 24–48 hours, helping airlines protect schedules and customer satisfaction.

Power-by-the-hour and long-term maintenance agreements embed deep ties with customers, exemplified by CFM’s fleet of over 40,000 engines in service in 2024 that rely on lifecycle support. Shared KPIs align uptime and cost outcomes, while dedicated account teams manage fleet health and drive continuous improvement. Contract structures increasingly evolve with utilization data and predictive analytics to balance risk and reward.

Embedded engineers onsite for operations and AOG enable rapid root-cause analysis and fixes, cutting disruption time by 20–50% (McKinsey 2024). Close collaboration with field teams accelerates upgrades and retrofit cycles, shortening deployment timelines and ensuring continuous feedback loops that directly inform and prioritize product roadmaps.

Strategic sales to airframers and airlines secure engine and systems selections, leveraging program teams that manage RFPs and campaign support across complex procurements. Executive relationships materially influence fleet decisions, while contracts lock in multi-year deliveries, typically spanning 5–15 years to match industry fleet replacement cycles of about a decade.

OEM shops and partner facilities deliver GE’s global MRO coverage, supporting a LEAP installed/backlog base exceeding 20,000 engines as of 2024. Standardized repair processes and quality systems reduce variability and shorten turnaround times. Dynamic slot management smooths demand spikes across the network, while proximity to operators cuts logistics time and costs, capturing value in the $88 billion global MRO market (2023).

Major network carriers prioritize efficiency and reliability, driven by 2024 global passenger demand at about 95% of 2019 levels (IATA). Low-cost carriers focus on aircraft utilization and minimizing total cost of ownership, representing roughly one-third of global seat capacity in 2024. Cargo operators emphasize durability and thrust flexibility amid e-commerce-driven freight demand. Regional differences across North America, Europe and Asia shape service and support models.

Airframers demand integrated propulsion solutions—airframe and engine OEMs align interfaces, certification and support so platforms meet OEM performance targets; CFM LEAP had over 20,000 orders/commitments by 2024, underscoring integrated wins. Joint timelines and milestone-driven coordination during development and certification are critical as programs commonly span 20–30+ years. Engine choice directly affects fuel burn (new engines cut burn by up to 15–20%), range and sales, creating enduring supplier partnerships and aftermarket revenue streams.

R&D investment demands sizable spend on materials, aerodynamics and test rigs; modern turbofan programs by 2024 report development costs commonly in the $2–5 billion range, with certification/compliance adding roughly $200–500 million. Long development cycles require staged funding tranches, while JV cost-sharing (co-development, risk-sharing) is used to offset upfront capital and schedule risk.

Precision parts, special alloys and complex assemblies drive COGS for GE’s industrial businesses, with industry COGS commonly exceeding 50% of product revenue and aerospace components often using nickel and titanium alloys that add 10–30% to material costs. Capital for tooling, automation and additive manufacturing is substantial; global industrial capex and AM investments rose in 2024, with AM market estimates near $18–20B. Yield and scrap rates materially affect margins—minor yield improvements of 1–2% can swing margins by several percentage points—while energy and labor costs vary by region, with 2024 US industrial electricity roughly $0.07–0.08/kWh and labor rates notably higher than in Southeast Asia.

Shipsets sold to airframers generate initial revenue and set program-level pricing; GE Aerospace reported about $31.6 billion in 2024 revenue for the segment, underpinning commercial engine programs. Pricing balances launch economics with install-base growth; options and thrust ratings expand addressable orders and aftermarket potential. Deliveries in 2024 drove recurring aftermarket annuities from MRO and spares.

Blades, vanes and life-limited parts drive recurring sales with aftermarket demand; aviation aftermarket contributes about 40% of total engine life-cycle revenue, supporting GE’s spares book. Rotable pools and exchanges provide operational flexibility and reduce AOG risk, often covering a material share of short-term spares usage. Pricing ties to proven reliability and flight hours; forecasting is synchronized to fleet maintenance and overhaul cycles.