Ge Medical Case Study: " in China for China"

1137 Words Jun 13th, 2011 5 Pages
Ajaya Tachajanta 2011 General Electric Medical Systems, 2002 Overview GEMS is the world’s leading manufacturer of diagnostic imaging equipment and part of Milwaukee-based GE. It is the leader in MR and CT imaging in all regions. According to Immelt’s strategy, GEMS evolves from taking joint-venture and acquisition as the first step where business’s size is matter. Secondly, Global Product Company (GPC) concept is introduced aiming at cutting cost by shifting the manufacturing activities from high-cost based to low-cost based nations, allowing GEMS to earn more margin. Last but not least, investing in developing marketing and sales organization is emphasized to position GEMS as a more than Equipment Company i.e. to differentiate itself from …show more content…
This allows GEMS to employ low-cost talents. Since different markets would share different need and structure in medical industry but they still have some common needs and principles on product features, hence, R&D and product design are partly centralized to effectively utilize human capital and cost, and partly localized to meet the different needs and structures of medical industry in different markets.

Ajaya Tachajanta 2011 Sales strategy; Sales is treated as local operations since different markets would have different healthcare demands, structures, and regulations. GEMS focuses on the wholly-own direct sales where the market is large enough to support the infrastructure as to reduce the intermediary providing GEMS to fully enjoy the margin. Product differentiation is established on product itself and highly on the services. The value added service contract sales is focused with the move towards in-house service as GEMS’s superior technology contributing differentiation competitive advantage of GEMS over its competitors. Marketing strategy; Since the per capita income referring to the purchasing power, and demographics and the structure of the market itself referring to the products demanded varies across countries, thus the need of localizing marketing is important. GEMS tries to customize its products in respond to demand while GPC concept is still hold. The marketing of used product has been implemented as an option for low purchasing power clients which GEMS

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