Asianometry How Westinghouse Lost its Way
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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Founder's Rise And Fall
- George Westinghouse invented the airbrake and then founded Westinghouse Electric to commercialize AC power distribution technologies.
- His centralizing management and debt-fueled expansion led to the Panic of 1907 and his sidelining by bankers.
The 'Benign Circle' Strategy
- Westinghouse and GE pursued a "benign circle": sell appliances to increase electricity demand and turbine sales.
- This strategy shaped decades of corporate diversification and product choices.
Good Science, Weak Commercialization
- Westinghouse invested in a central industrial lab that produced strong science but few commercial products.
- Microwave research led to lucrative radar work, but many projects lacked product follow-through.