Abstract
GE Healthcare is a division of GE that has headquarters in Buckinghamshire, United Kingdom. Initially, the firm was known as GE Medical Systems, but it changed its name in 2004. The firm specialises in unique medical technologies and services that help patients to improve their health care outcomes across the world. Its technologies are applied in medical diagnostics, drug design manufacturing systems, patient evaluation systems, and performance solutions services. This paper has addressed various aspects of the firm in vis-à-vis adopting strategic approaches in the BOP in India. In addition, barriers faced and solutions are highlighted.
Emerging Trends in the external environment
The external environment was quite dynamic in India, which made the management of GE Healthcare focus on an innovative approach to produce and market a low-cost ECG that could record excellent sales in the bottom of the pyramid markets (BOP). First, cardiovascular disease was a major cause of morbidity and mortality in India. Globally, the disease also accounted for about 30% of all deaths. The number of Indians presenting with heart diseases in health care facilities was about 60 million (Singh, 2011). Thus, it was expected that the development and marketing of low-cost ECG devices would satisfy market needs, and allow persons to improve health care outcomes by supporting early detection (Singh, 2011).
Another emerging trend is that only a few Indians could access the services offered through ECG due to high costs or since they lacked access to hospitals. Thus, the management felt that there was a need to develop and market ECG devices that could satisfy the requirements of less sophisticated doctors and low-income patients.
Two internal barriers
Although GE Healthcare aimed at realising excellent sales concerning BOP in India, it faced two major challenges (Singh, 2011). First, the company was unable to fully tap into the wide Indian market, which could result in improved sales. At that time, it was noted that sales from the country comprised a relatively tiny fraction. This impacted the organisation because the management of the giant firm did not pay much attention to the market. Second, it was evident that R&D approaches in the nation were focused on producing products for the high-end segments. The barriers impacted the company negatively because it only sold a relatively small number of products (Singh, 2011). Thus, the two internal barriers hindered the firm to grow in India, which presented a huge market potential.
Two external barriers and solutions
One of the significant barriers of marketing in India faced by GE Healthcare was stiff competition from established firms, such as Siemens and Philips, which were producing and selling various medical devices. The high competition could be addressed by adopting innovative approaches, such as low pricing and market segmentation. Low pricing concentrates on selling many units at relatively low prices rather than selling fewer units at relatively high prices (Swayne, Duncan, & Ginter, 2012).
Market segmentation involves classifying different divisions of markets based on the abilities of customers to purchase (Swayne et al., 2012). Another challenge was since the products sold by the firm did not meet the needs of customers. Thus, they registered minimal sales. This could be addressed by involving potential consumers in the design and production of products so that they could give their views (Swayne et al., 2012).
Specific step for growth about BOP
When the management noted that the firm could not achieve the expected goals, it focused on adopting more strategic approaches that could support BOP in India. First, in terms of geographic dimension, the nation was viewed as an independent region, which was the case with other markets, such as the US and China. Second, organisational changes ensured that workers reported directly to the country CEO (Singh, 2011).
Thus, it was evident that the business in India could be perceived as an entity with its growth strategy, ways of developing leadership and budgeting. It can be stated that the two ways involved the principles of strategic thinking and strategic planning. In relation to strategic thinking, the management focused on identifying unique business opportunities that could create a competitive advantage. Strategic planning was involved because the firm decided to adopt decentralisation in India, which could be critical in making decisions and allocating various resources to meet business goals (Swayne et al., 2012).
The organisation’s value chain in both emerging and developed markets
Research shows that multinational firms are keen trends in terms of emerging and developed markets across the world (Swayne et al., 2012). The approach by GE Healthcare to improve its position in the bottom of the pyramid markets was important in achieving excellent results in the two types of markets. For example, the new CEO was aware of the market dynamics in the new country, and he was connected with GE’s global business heads (Singh, 2011).
Thus, the business establishment could continue operating well in established markets, such as the US, and start to register better sales in emerging markets, such as India. One of the best strategies for better growth trends in both emerging and developed markets was the adoption of R&D teams that could focus on the specific needs of customers, which could go a long way in producing and marketing customised goods (Swayne et al., 2012).
References
Singh, J. (2011). GE Healthcare (A): Innovating for Emerging markets. Web.
Swayne, L. E., Duncan, W. J., & Ginter, P. M. (2013). Strategic management of health care organizations (7th Ed.). San Francisco, CA: Jossey-Bass.