Global Force of Change - Ge Case
Global Forces of Change
1. From the case facts, describe how globalization and technology have influenced the business directions of GE Medical Systems.
Technology
Since new requirements in healthcare business had been emerged, in the market it is required to implement personalized medicine to support specific client – not mass population. Moreover, trend on find the way to prevent sickness is more concerned than to heal. This is massive challenge to medical equipment manufacturers whether which company can find the best technology to support these requirements. GE believed that the best technology would always win in the marketplace so they responded to these requirements by investing more on R&D and also product design. As the result, corporate R&D invented some new products which replace need of existing product, for example, digital detectors for X-ray machines that would replace the need for X-ray film.
Globalization
Globalization increases connectivity and interdependence of the world’s markets and businesses. Emerging middle-classes of Asia, Eastern Europe and Latin America is also an opportunity for healthcare company like GE to expand their markets, increase sales and profits. Beside of sales side, GE can also reduce their manufacturing cost by shifting manufacturing from high-cost countries to low-cost countries. This would increase their competitive advantage.
2. Identify possible projects by which a company dealing in Healthcare and Medical Diagnosis like GEMS can profitably ride the waves of globalization, liberalization and technology. * Shifting manufacturing base from high-cost countries to low-cost countries in order to reduce production cost. * To develop healthcare IT system, this is to manage necessary data systematically such as patient data, treatment record etc. This is also helpful for diagnosis. * To apply Free Trade Agreement with emerging countries in order to facilitate access of healthcare products. *
1. From the case facts, describe how globalization and technology have influenced the business directions of GE Medical Systems.
Technology
Since new requirements in healthcare business had been emerged, in the market it is required to implement personalized medicine to support specific client – not mass population. Moreover, trend on find the way to prevent sickness is more concerned than to heal. This is massive challenge to medical equipment manufacturers whether which company can find the best technology to support these requirements. GE believed that the best technology would always win in the marketplace so they responded to these requirements by investing more on R&D and also product design. As the result, corporate R&D invented some new products which replace need of existing product, for example, digital detectors for X-ray machines that would replace the need for X-ray film.
Globalization
Globalization increases connectivity and interdependence of the world’s markets and businesses. Emerging middle-classes of Asia, Eastern Europe and Latin America is also an opportunity for healthcare company like GE to expand their markets, increase sales and profits. Beside of sales side, GE can also reduce their manufacturing cost by shifting manufacturing from high-cost countries to low-cost countries. This would increase their competitive advantage.
2. Identify possible projects by which a company dealing in Healthcare and Medical Diagnosis like GEMS can profitably ride the waves of globalization, liberalization and technology. * Shifting manufacturing base from high-cost countries to low-cost countries in order to reduce production cost. * To develop healthcare IT system, this is to manage necessary data systematically such as patient data, treatment record etc. This is also helpful for diagnosis. * To apply Free Trade Agreement with emerging countries in order to facilitate access of healthcare products. *