Genicon: a Surgical Strike Into Emerging Markets.
Abstract
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) e.Genicon shareholder. II. Problem Identification a.Domestic business i.Lack of a favorable channel in the US. ii.High bargaining power of buyers through group purchases (GPO) . iii. High regulatory costs. b.International business. 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.
III. Suggestions a.Uncertainty Avoidance i. Haberland and his company appear to be strong Uncertainty Avoidance very structure and having conservative
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) e.Genicon shareholder. II. Problem Identification a.Domestic business i.Lack of a favorable channel in the US. ii.High bargaining power of buyers through group purchases (GPO) . iii. High regulatory costs. b.International business. 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.
III. Suggestions a.Uncertainty Avoidance i. Haberland and his company appear to be strong Uncertainty Avoidance very structure and having conservative