Genicon case analysis
GENICON case analysis
In this case, BRIC countries, Brazil, Russia, India and China have plenty of similarities. For example, they are developing countries with high GDP growth rate, and they all have substantial population, which come along with tremendous market size and exuberant demands. However, from their social system to the level of bureaucracy, they also diversify from each other. Based on the provided information in this case, I think Brazil is the best fit for GENICON’s plan to enter new market, despite favorable advantages from other countries.
First, from the quantitative perspective, Brazil is a growing economy with substantial market size; even its population ranked number three (200.7 million 1) among BRIC countries and its medical device market ranked the second place (trailing China with $5.7 billion as of 2013); it is worth noting that the medical device market per capita of Brazil ranked the highest among BRIC countries, leading Russia, the second high by 8.33 dollar per capita. This number indicates that at Brazil health care providers from both public and private sector are more willing to pay money on purchasing medical deceives.
Medical Device Market per Capita Brazil
Russia
India
China
Market size (million$)
5700
2880
4010
23250
Population (million)
200.7
143.5
1200
1357 per Capita ($)
28.40
20.07
3.34
17.13
Table 1. Calculated medical device market per capita
Moreover, from the business environment perspective, even Brazil’s economy was influenced by the 2008 depression, it is recovering and the long-term growth prospects were generally positive. GDP growth rate in 2013 was 6.6; the overall business environment is healthy and promising. Unlike Russia, who lacks economy diversity, Brazil’s economy is fairly diversified, and this is actually a guarantee for a steady and stable development in the future. More steady its economy; more likely they could increase their spending on health care and medical devices. The overall trend
In this case, BRIC countries, Brazil, Russia, India and China have plenty of similarities. For example, they are developing countries with high GDP growth rate, and they all have substantial population, which come along with tremendous market size and exuberant demands. However, from their social system to the level of bureaucracy, they also diversify from each other. Based on the provided information in this case, I think Brazil is the best fit for GENICON’s plan to enter new market, despite favorable advantages from other countries.
First, from the quantitative perspective, Brazil is a growing economy with substantial market size; even its population ranked number three (200.7 million 1) among BRIC countries and its medical device market ranked the second place (trailing China with $5.7 billion as of 2013); it is worth noting that the medical device market per capita of Brazil ranked the highest among BRIC countries, leading Russia, the second high by 8.33 dollar per capita. This number indicates that at Brazil health care providers from both public and private sector are more willing to pay money on purchasing medical deceives.
Medical Device Market per Capita Brazil
Russia
India
China
Market size (million$)
5700
2880
4010
23250
Population (million)
200.7
143.5
1200
1357 per Capita ($)
28.40
20.07
3.34
17.13
Table 1. Calculated medical device market per capita
Moreover, from the business environment perspective, even Brazil’s economy was influenced by the 2008 depression, it is recovering and the long-term growth prospects were generally positive. GDP growth rate in 2013 was 6.6; the overall business environment is healthy and promising. Unlike Russia, who lacks economy diversity, Brazil’s economy is fairly diversified, and this is actually a guarantee for a steady and stable development in the future. More steady its economy; more likely they could increase their spending on health care and medical devices. The overall trend