Advantages And Disadvantage Of Genicon
Genicon
1. What advantages and disadvantages does Genicon have over large multinational corporations in the process of market selection?
Genicon has been at disadvantage in US market due to group purchasing organizations have been controlling sales of minimally invasive surgery products since 1990s. GPO financial structure has been favoring large companies and it was getting difficult for several startups or smaller organization to enter market and position them. Since Genicon did not have big infrastructure and international expertise, it was also questionable about international market share capture. According to 2009 GENICON business plan, growth for pacific rim was estimated to be 14%, middle east 11% Europe 9% Latin America 6% as opposed to 5% growth rate for united states. With this forecast of international growth Genicon had huge …show more content…
Capital investments and risk associated with international market entry were also concerning for company like Genicon and choosing a right market was crucial as due to lack of financial resources and personnel, Genicon was facing an opportunity cost as well. Multinational companies often have capital and infrastructure along with international expertise and resources which were requirement for international market entry and success. There was also a challenge of dealing with regulatory bodies at several international companies and contracts were done on bidding basis and socialized medicine concept also was a risk factor for profit even though if Genicon were able to obtain contract. Though laparoscopic device industry was growing but healthcare market had favored GPO and large companies were able to afford bigger discounts and GENICON had inability to sell any significant amount of products in US market. Also due
1. What advantages and disadvantages does Genicon have over large multinational corporations in the process of market selection?
Genicon has been at disadvantage in US market due to group purchasing organizations have been controlling sales of minimally invasive surgery products since 1990s. GPO financial structure has been favoring large companies and it was getting difficult for several startups or smaller organization to enter market and position them. Since Genicon did not have big infrastructure and international expertise, it was also questionable about international market share capture. According to 2009 GENICON business plan, growth for pacific rim was estimated to be 14%, middle east 11% Europe 9% Latin America 6% as opposed to 5% growth rate for united states. With this forecast of international growth Genicon had huge …show more content…
Capital investments and risk associated with international market entry were also concerning for company like Genicon and choosing a right market was crucial as due to lack of financial resources and personnel, Genicon was facing an opportunity cost as well. Multinational companies often have capital and infrastructure along with international expertise and resources which were requirement for international market entry and success. There was also a challenge of dealing with regulatory bodies at several international companies and contracts were done on bidding basis and socialized medicine concept also was a risk factor for profit even though if Genicon were able to obtain contract. Though laparoscopic device industry was growing but healthcare market had favored GPO and large companies were able to afford bigger discounts and GENICON had inability to sell any significant amount of products in US market. Also due