Case Study: Ge Healthcare in India: an (Ultra) Sound Strategy?

1142 Words Oct 29th, 2015 5 Pages
Case Study: GE Healthcare In India: An (Ultra) Sound Strategy?

What are the basic facts?
GE Healthcare India, a joint venture between General Electric (GE) and the Indian multinational Wipro Ltd., had ended the 2005-2006 year with a significant rise in sales of 10% since last year. They were the market leader in the $77 million ultrasound machine market, beating its competitors, which included Siemens, Toshiba and Philips. The president and CEO of GE Healthcare India, V. Raja read the newspaper headlines which described how government officials in Hyderabad had been confiscating ultrasound machines that they suspected were being used illegally to determine the sex of unborn children. The article featured a poster for GE ultrasound
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With such importance placed on a boy child- male dominance rises, abortion rates increase and women have no importance or role in the society. As the male population goes up, the society is more prone to banditry, rapes, sexual harassment cases, eve teasing, rioting and militarization. Shortage of women also leads to socially disruptive behavior and mental health issues.

What are the effects on each group, company, investor, employee, consumer, and/or society?
GE Healthcare India, one of the main stakeholders in this issue, sold 18,255 ultrasound scanners in India from 2002 to 2006 and had whopping sales of $77 million in 2006. As a result of the rising criticism of ultrasound machines sold by their company, they have faced legal issues, intense government scrutiny and pushback from activists for having aggressive sales tactics. Completely banning ultrasounds would have an adverse effect on their company and its sales.
The employees of GE Healthcare India would also be criticized for working for a company that sells ultrasound machines which are promoting abortion of the female child. If GE Healthcare India’s sales go down because of the whole controversy, the employees would lose their jobs.
The consumers and society would not be able to use ultrasound machines if it was banned. Ultrasound machines have several benefits like diagnosis of gallbladder disease or obstructions, evaluation of blood flow in blood vessels, identifying abnormal

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