Asianometry How Westinghouse Lost its Way
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Jan 18, 2026 Explore the fascinating rise and fall of Westinghouse Electric, from its groundbreaking inventions to its struggle during the Panic of 1907. Discover how postwar shifts led to neglect in turbine technology and costly diversification strategies. Delve into the company's risky ventures in real estate and the disastrous consequences of a market crash. Learn about the pivotal move toward media, culminating in the acquisition of CBS, and the eventual transformation into a media-centric corporation. A historic tale of ambition, overreach, and reinvention.
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Late To Turbine Innovation
- GE aggressively shifted to larger reheat and later supercritical turbines, while Westinghouse delayed R&D and scaled existing designs.
- That lag produced higher failure rates and damaged Westinghouse's competitiveness in turbines.
Diversify With Strategic Guardrails
- Decentralize businesses but set clear financial targets and guard core capabilities when diversifying.
- Avoid pursuing any business 'if it makes money' without ensuring strategic fit and technical competence.
The Wild Diversification Spree
- Under Donald Burnham Westinghouse bought businesses from desalination to mail-order watches and even planned whole cities like Coral Springs.
- The spree generated revenue but diluted focus and diverted capital from core turbine R&D.