assign2
Assignment 2 – GENICON: A Surgical Strike into Emerging Markets
Executive Summary
In the laparoscopic industry in the U.S., distribution of MIS devices had been controlled by large companies of group purchasing organizations (GPOs). This caused a high barrier of entry for small and startup companies. GENICON, as a young U.S. firm, was not only able to remain open but actually thrived by focusing on its international distribution strategy since the early stages of its launch (Kupetz et al., 2010, p. 1). It grew business in different nations, like Pacific Rim, Middle East, Europe and Latin America by 2009 (Kupetz et al., 2010, p. 1). Since the approximately 80 per cent of GENICON’s business was derived outside the United States, a critical factor in its success had been choosing the right international markets. In 2010, Gary Haberland, the president of this company, narrowed four countries (China, India, Brazil and Russia) to consider which one to enter his business.
Problem Statement
Gary Haberland, the founder of GENICON, faced that problem of choosing to enter suitable markets globally. Due to GENCION’s limited human and capital resources, it was critical that only countries with great market potential were chosen (Kupetz, Tindal & Haberland, 2010, p. 5). Therefore, he narrowed down the list to four countries to consider: India, China, Brazil and Russia.
Analysis
GENICON was a U.S.-based firm that manufactured and distributed medical devices used in laparoscopic surgery (Kupetz et al., 2010, p. 1). Because laparoscopy could reduce trauma to the skin and muscles and post-operative pain and this led to shorter hospital stays and recovery times, minimally invasive surgery (MIS) became more popular than traditional open techniques (Kupetz et al., 2010, p. 2).
Although the large and increasing demand for MIS devices, distribution of them had been controlled by companies receiving contracts through group purchasing organizations (GPS’s) since the early of 1990s. The
Executive Summary
In the laparoscopic industry in the U.S., distribution of MIS devices had been controlled by large companies of group purchasing organizations (GPOs). This caused a high barrier of entry for small and startup companies. GENICON, as a young U.S. firm, was not only able to remain open but actually thrived by focusing on its international distribution strategy since the early stages of its launch (Kupetz et al., 2010, p. 1). It grew business in different nations, like Pacific Rim, Middle East, Europe and Latin America by 2009 (Kupetz et al., 2010, p. 1). Since the approximately 80 per cent of GENICON’s business was derived outside the United States, a critical factor in its success had been choosing the right international markets. In 2010, Gary Haberland, the president of this company, narrowed four countries (China, India, Brazil and Russia) to consider which one to enter his business.
Problem Statement
Gary Haberland, the founder of GENICON, faced that problem of choosing to enter suitable markets globally. Due to GENCION’s limited human and capital resources, it was critical that only countries with great market potential were chosen (Kupetz, Tindal & Haberland, 2010, p. 5). Therefore, he narrowed down the list to four countries to consider: India, China, Brazil and Russia.
Analysis
GENICON was a U.S.-based firm that manufactured and distributed medical devices used in laparoscopic surgery (Kupetz et al., 2010, p. 1). Because laparoscopy could reduce trauma to the skin and muscles and post-operative pain and this led to shorter hospital stays and recovery times, minimally invasive surgery (MIS) became more popular than traditional open techniques (Kupetz et al., 2010, p. 2).
Although the large and increasing demand for MIS devices, distribution of them had been controlled by companies receiving contracts through group purchasing organizations (GPS’s) since the early of 1990s. The