Innovating for Emerging Markets
INNOVATING FOR EMERGING MARKETS 7
Innovatingfor Emerging Markets
TheGeneral Electric Healthcare focuses on the development of newInformation Technology in Healthcare facilities such as advancedpatient monitoring systems and imaging technology. They have a teamof experts who provide medical diagnosis, biopharmaceuticalmanufacturing technologies and assist doctors with new ways oftreating diseases so that patients can live healthy (Herhausen,2011). The GE Healthcare was recognized globally and had a goodrecord in sales. It merged with Wipro which was a leading company inIndia making it easier to operate as a foreign multinational.
Theprimary objective of GE Healthcare was to addressing the needs ofpatients and this enabled it to diverse its operations to remoteareas. There were numerous emerging trends in the externalenvironment that encouraged GE Healthcare to develop new ways forproduction of cheap Electroencephalography devices of the low incomeclients. The first emerging trend is that there was a need to develophigh value products because the healthcare equipment industries inIndian made devices of low value (Czinkota & Ronkainen 2012). Theproducts made included needles and their quality could not venture into the international market. The GE Healthcare products were of highvalue and affordable in bottom of the pyramid markets. Equipmentssuch as ECG and MRI made GE Healthcare the best provider ofdiagnostic devices in India.
Theother emerging trend is that the launching of the Healthymaginationcampaign was a big achievement to the GE Healthcare. The aim was tobring down the cost of these equipments as well as improving thequality of healthcare services across the globe (Herhausen, 2011).The organization invested on low income earners and increased theaccess to these facilities. GE Healthcare showed a corporate socialresponsibility by making these devices available to everyone andbuilding more facilities for check up so that people could live ahealth life.
Therewere numerous internal barriers that GE Healthcare faced whendeveloping the low income market in India. First, it took a long timefor the product to penetrate the Indian market. This was due to theimplementation of the clinical guidelines. It also took time to trainstaff that could operate the electronic devices being developed.There was a need to equip staff with the knowledge of how theequipments operated (Czinkota & Ronkainen 2012). The devices werenew in the market and hence healthcare professionals were unaware andlacked familiarity with them.
Theother internal barrier is financing and payment systems. Low incomeearners are used to good enough performance. They were used to themedical services provided in India and the introduction of newequipments seemed challenging to them. The payment made by customersand the funding received determines the profit of the equipment sold.It was a barrier because GE Healthcare concentrated in sellingproducts that they manufactured rather than focusing on the consumerneeds (Czinkota & Ronkainen 2012). At first, opportunities werelost because they did not provide services that satisfied customers.
Itis not easy to change an established behavior of any kind. Thereexist barriers in healthcare due to the established relationshipsbetween medical professionals, organizations and patients. The GEHealthcare faced numerous external challenges in the attempt to meetits marketing goals. First, India comprised of a small country andhence the sales made were not enough to make the products ventureinto the international market. The organization decided to make Indiaan independent sector same as America and other regions.
Competitionis the second external challenges facing GE Healthcare. Whether acompany operates in an industry with few or many competitors, oneneeds to understand competition. Companies compare the prices ofother similar organizations in order to offer a competitive price(Czinkota & Ronkainen 2012). GE Healthcare was not the onlyorganization focusing on the BOP market. Rivals such as Schiller andSiemens also targeted these markets with BPL being the mostsuccessful company. It had a strong distribution network and theproducts were sold at a lower price as compared to GE Healthcare.Competition is healthy in every business. Despite the competition, GEHealthcare had an excellent brand for their products and henceemerged victorious. It also addressed these challenges by focusing ona specific group of customers (Herhausen, 2011). Low income earnerswere the main target of the products and services provided by GEHealthcare.
Itis difficult to achieve organization goals without a strategy.Strategy development helps the organization to identify the key areasto spend money and time as well as invest human capital. The GEHealthcare adopted numerous steps in developing its strategy to growin the BOP market. The first step made by GE Healthcare was goalsetting (Hunger & Wheelen 2014). It helped identify the vision ofthe organization. GE Healthcare identified both the short andlong-term goals. It was also able to identify the methods to use inachieving these objectives. The goal of GE Healthcare was to providehigh quality devices at low cost so that it would emerge the leadingcompany in India. It laid out the mission statement that helped inachieving the goals.
GEHealthcare was also able to analyze the internal and external issuesthat would hinder or facilitate success of the business. It was ableto analyze the threats and opportunities that could affect theorganization. The internal analysis included the financialperformance, positioning of the business and corporate culture amongothers (Hunger & Wheelen 2014). Further, the eternal analysisfocused on competition, opportunities and changing trends in themarket among others. This enabled GE Healthcare to meet the needs ofthe BOP market.
Theother step that GE Healthcare took is strategy formulation andimplementation. It involves determining the available resources so asto meet the set goals. It was able to secure external resources fromorganizations that felt they had an impact on the lives of people.They implemented their products after ascertaining that they hadenough funds and expertise (Hunger & Wheelen 2014). Evaluationand control was the last step. GE Healthcare employed control actionssuch as performance measurement and regularly reviewing the internaland external problems. They also made sure that collective actionswere put in place.
Businessesare becoming global with manufacturing and service delivery spanningcontinents. Competition among industries and the advancement intechnology has been a challenge to most organizations (Herhausen,2011). GE Healthcare developed a plan that utilized the resources andpeople in order to venture the global world. The GE Healthcarestrategy enabled it to improve its position in BOP markets and thuscontribution to the value chain of the organization. Initially, GEHealthcare concentrated more in BOP markets but the sales were notenough for the international market. The GE Healthcare then decidedto introduce its products to the developed markets. It also expandedthe operations to include emergency rooms, rural healthcarefacilities, care doctors and accident wards among others (Czinkota &Ronkainen 2012). The introduction of GE products in the U.S marketwas a great success for the organization. The devices were proveduser-friendly and due to the connectivity in America, the productswent viral across the globe.
Czinkota,M. R., & Ronkainen, I. A. (2012). Internationalmarketing.Mason: South-Western.
Herhausen,D. (2011). Understandingproactive customer orientation: Construct development and managerialimplications.Wiesbaden: Gabler Verlag.
Hunger,J. D., & Wheelen, T. L. (2014). Essentialsof strategic management.Essex: Pearson.