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Innovatingfor Emerging Markets


GEHealthcare has indicated determination in the production andmarketing of Electroencephalography (EEG) machine with a reduced costas part of its growth strategies. Those devices were particularlyfocused towards improving the quality of services in India. Accordingto Lapointe (2011), one emerging that prompted the organization tointroduce cheaper Electroencephalography (EEG) machine in India isbecause cause cardiovascular diseases were the major contributors ofdeath around the globe. At least 30 percent of the deaths wereassociated with heart failure diseases such as stroke. Although thesediseases affect many countries, India records the highest numbers,which are over two million people every year.

Thesecond emerging trend is deteriorating economy and the ability of thegovernment to fund various public services. Between the year 2005 and2015, the country’s economy expected to run short of up to $237billion because of heart disease, diabetes and stroke (Lapointe,2011). In addition, in the year 2005, more than 60 million peoplewere suffering from heart diseases. However, the country was expectedto improvement and develops channel for hosting many heart patientsaround the globe. Such an opportunity meant thatelectroencephalography (EEG) machine was extremely essential tofacilitate early detection.

Thechallenged economy meant that only a few people could afford anexpensive device. However, to the essential device affordable to muchhealth organization, it was beneficial to consider lowering theprice.


Theorganization has been faced by communication and poor strategies tomanage the new market. Poor methods of gathering sufficientinformation from the market made it difficult for this organizationto satisfy its customers. In fact, one of the key leaders in theorganization stated that the institution is selling what it is makingrather than targeting the customers’ demand. In the past, theorganization had developed similar strategies to apply in everymarket. Some issues failed work in India because many factors weredifferent. These barriers hindered the organization’s ability togenerate returns on investment. It was difficult to monitor theperformance of every worker in organization (Yesudian, 2012).Determining the customer demand became difficult and thus hinderedthe expected growth and development.

Toaddress the challenges, GE Healthcare may consider making everyeffort to increase the sales volumes. The process can facilitateaccumulation of profits because of high number of units sold. Toachieve the target, the organization must develop strategies topersuade many customers. To eliminate the problems created bygeographical variation, it is beneficial to design strategies tosatisfy the market through analyzing the customers’ requirement.The organization must conduct market survey and analysis from time totime to determine the changing trend and perception (Yesudian, 2012).


GEis experiencing a key barrier in penetrating the Indian market due toits failure to tap into the large market. This is because its Indiansales are just a small fraction of the global sales. Therefore, theidiosyncratic requirements of the market did not attract muchattention I the global organization. Another barrier to Indian marketpenetration is lack of GE to realize its strategic objectives. Forinstance, in 2005, the company had stipulated a revenue goal of $5billion by 2010. However, the company had only realized a $3 billionrevenue mark in 2010 (Yesudian, 2012).

Tocounter the above challenges GE came up with a new strategy forIndia. The strategy involved making changes within its organizationalstructure.

Thefirst change was on the organization’s matrix on geographicaldimension. This means GE had to treat India as an independent region.The second change was the change of the GE India to make it a lossand profit center on its own. The heads of Indian businesses were nowto report to the Country Chief Executive Officer (Rafinejad, 2007).The second strategy to overcome the challenges was the setting up ofnew product teams, which were specifically for commercializing anddeveloping its products. R&ampD was locally boosted by enhancingefforts in manufacturing, sourcing, local service and marketing. Thegrowth targets set would adapt better to this market as well as costcutting and enhancing timely decision-making.


Intargeting the BOP market, GE designed an ECG solution to the JFWTC.GE used local R&ampD, which came with three benefits. First, the GEteam had a better understanding of the Indian market, and what thecustomers want (Rafinejad, 2007). Secondly, the team was well awareof the off-the-shelf products locally available. Thirdly, the cost ofdevelopment was much lower than in the US for a similar project. TheECG device that targeted BOP was called MAC 400. The device was muchsmaller to fit a backpack (Lapointe, 2011). . The expense printerwas replaced by a small machine, which resembled a ticket machine.

GEunderstood the need to streamline the costs of its equipment due tothe alarming deaths as a result of cardiovascular and othernon-communicable diseases (Lapointe, 2011). Due to the high cost ofaccessing the machines, most of the low-income earners could notafford to pay for the services.

Limitedmarket research and poor distribution channels marred the initiationof a low cost machine. The company saw a strategy of buildingresources for future use. The company is also planning to educate theBOP through conducting of courses of the technicality involved inusing ECG DEVICES. To help customers financially, GE made a deal withState Bank of India to offer loans that did not attract interest. GEhealthcare is also trying to reach the low-income market focusing onX-ray, ultra sound and baby warmers.


Althoughthe organization faced many challenges, it was able to penetrate theIndian market and make a significant influence. The market challengedGE Healthcare and encouraged development of improved strategies towin the market. To win the market, the organization was required tomake various changes in its marketing strategies including productpricing and promotion. It is notable that most of the strategies thattargeted improvement of the BOP markets eventually prompteddevelopment of effective value chain in other markets. The experienceplaced the organization in a better position to understand othermarket and target at expanding the business to offer services to theentire globe.

Theorganizations’ market penetration strategy focused at improving theaccessibility of the product. The process was supported by improvedservice delivery and offering better support services. GE Healthcareensured that any customer who pays for the products receives itwithin a short period in the best condition. In addition, theorganization offered other supportive services such as productsoperations, maintenance and management (Rafinejad, 2007).


Lapointe,K. (2011). Innovative Emerging Market Strategies. BiotechnologyInnovation: Doing More With Less,42.

Rafinejad,D. (2007). Innovation,Product Development and Commercialization: Case Studies and KeyPractices for Market Leadership.J. Ross Publishing.

Yesudian,S. (Ed.). (2012). Innovationin India: The Future of Offshoring.Palgrave Macmillan.