Gems Case

666 Words3 Pages
1. Analyze overall challenges of GEMS in 2002 a. Technological change: + Genomics and healthcare information technology such as Digital Imaging, Electronic Patient Records and Disease Management Systems make personalized medicine and personalized diagnostics possible. Moreover, healthcare practice move from cure to prevention. These changes require expertise in biomedical sciences rather than in engineering and physics; and also investment, collaboration with pharmaceutical companies which facilitate the creation of imaging equipment necessity to alter GEMS business model which is away from engineering heritage toward bio-chemistry and develop drug based on genetic code for specific individual, or small group rather than entire…show more content…
a. Strengths: + Company gains cost reduction of manufacturing (first year cost savings of moving to a low cost country were about 30%, expect further ongoing cost reductions of 10% annually) + Distribution channel improved: can ship anywhere in the world which help develop market share, brand name and revenue. + Attract and utilize new talent in new countries: product design responsibility to gravitate towards countries with talented but under-utilized human capital; and also capitalize on diversity. + Promote the coordination among units and subsidiaries. b. Weaknesses: difficult and complex strategy + Difficulty in development of suppliers in low cost countries in short time such as China and India where long-term relationship need strong commitment and time spending. + Incur quite high cost involved in inventory, logistic, documentation and import duty costs relating to moving materials and products around the world. + Less experienced workforce in the new location due to culture conflict and need time for adaptation. + Lose concession or favorable treatment from developed countries which manufacturing are moved out. + Shifting knowledge bases of relevance created potential for being blindsided. + Face marketing challenges: customize products to suit the needs, marketing old and new products with different demand, languages, infrastructure in different countries; and marketing products to clinicians. 3. Whether to adopt the ‘In China for
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