Healthymagination: GE Healthcare

2434 WordsAug 18, 201410 Pages
Case Study: Healthymagination: GE Healthcare 1. Tom Gentile should give in my opinion the green light to two product concepts only (Hepecho and UltraLipo). Even though some of the product concepts may not meet the healthymagination criteria of 15% improvement across cost, quality and access perfectly, all targeted segments and markets have significant organic growth potential. See details/justifications below. The symbols represent the whether the healthymagination criteria can be met or not based on the justifications. HepEcho Justification Product Economics | | * Japanese market is estimated to be at $400M, which equates to about 2666 units ($400M/$150K). **Assumption: Average price of ultrasound for mid-tier general…show more content…
* Another way to look at the cost justification is to simply assume that when Stephanie Meyer did the thorough global market evaluation; her findings were taken into account in determining the 15% cost reduction by targeting a sale price of $120K. | Quality | | * The technology required is relatively simple. Therefore GEHS should have no issues achieving the 15% quality improvement target. * From a quantitative stand point it is hard to conclude whether the 15% quality improvement is feasible. | Access | | * It is somewhat difficult to quantify whether the 15% access increase can be met. * We could rule against the 15% increase in access by the fact that the FDA has not yet given approval in the US market, but again the biggest market is not in the US but in Brazil. | Omega Justification Product Economics | | * The new product could meet the performance and reliability expectation from customers (midwives). * Despite the fact that the $3K price would be too big of a financial commitment for most midwives, if 1 out of every 4 midwives is able to afford the device, GE will easily recover the $6M investment. * Total midwives in Indonesia: 59,800

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