Genicon: a Surgical Strike Into Emerging Markets. Essay
Genicon: a Surgical Strike Into Emerging Markets.
Genicon is a company with 10 years of experience domestic and some real international success , Genicon was successful in USA, but it quickly realized that it would be difficult for them to have sustainable growth, because the health care purchases medical equipment through GPOs. And as a small company it was so hard to obtain a contract from GPOs because their financial structure encourages them to purchase equipment from giants companies.So Genicon decided to go international and capture increasing demand there. It became smallest company to sell product to European markets with the assistance of BSI.Genicon was already in over 30 international markets and was looking in particular at the rapidly emerging markets – Brazil, Russia, India and China – as potential new opportunities for growth.So the question facing Genicon where it should go next?
I. Case key players/Contributors:
a.Gary Haberland,president and founder of GENICON.
b.small development team of Genicon.
c.MEDICA in Germany large tradeshows for medical devices. d.employee of British Standards Institution(BSI)
II. Problem Identification
i.Lack of a favorable channel in the US.
ii.High bargaining power of buyers through group purchases (GPO) . iii. High regulatory costs.
i.Sales of medical devices associated with the number of tenders which have different regulatory than US and its just for short term. ii.Due to GENCION’s limited resources it was hard to decide which country to invest in, depend on: 1-Regulation/ Compliance.
2-Bargaining power of buyers.
i. Haberland and his company appear to be strong Uncertainty Avoidance very structure and having conservative investments.Hesitance toward new products in medical devices. ii.Should go with weak UAI and make some risky investments.and to be more flexible and adaptable to any chaos. b.Short and Long term orientation
i.Almost all the contract that Haberland had with the international country are being traditional and current short term . ii.Try to find international country Long term orientation and sacrifice present for futere. IV. Recommendation
a.Should go with Brazil due to international accepted! Fast process, zero tariff. Easy Regulation/ Compliance.