Course Code: MKT 525 Course Title: Business to Business Marketing

Course Instructor: Dr. Pawan Kumar

Academic Task No.: CA-1 Academic Task Title: Case Study

Date of Allotment: 4th August, 2020 Date of submission: 6th October 2020

Student’s Roll no:Q1E47(A016) Student’s Reg. no: 11907407

Evaluation Parameters:

Learning Outcomes: Gain knowledge related B2B Marketing and learned different aspects of B2B

Marketing and how GE came up with different products in emerging market.

Declaration: I declare that this Assignment is my individual work. I have not copied it from any other
student’s work or from any other source except where due acknowledgement is made explicitly in the
text, nor has any part been written for me by any other person.

Student’s Signature: Rahul Sethi

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: _______________ Max. Marks: _____________

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 GE HEALTHCARE INDIA (B):

THE PRODUCT INNOVATION JOURNEY

Introduction of Company
GE Healthcare is leading global medical technology and digital solutions innovator. GE Healthcare
enables clinicians to make faster, more informed decisions through intelligent devices, data analytics,
applications and services.GE is also designing the tools that make healthcare available in even the most
remote parts of the world. GE has a presence in more than 160 countries.

Some Achievement’s of company

1st Handheld pocket-sized color ultrasound

1st Mammography device that puts women in control

1st Commercial CT scanner

SWOT Analysis Of GE

1) General Electric’s Strengths (Internal Strategic Factors)

2) Strong research and development processes
3) Strong brand
4) Diverse product portfolio

GE’s Weaknesses (Internal Strategic Factors)

1) Dependence on suppliers of raw materials

2) Weak performance in Asian markets

Opportunities for General Electric Company

1) Growth based on digital technology adoption in all industries

2) Growth in the renewable energy market

3) Growth in developing markets

Threats Facing GE

1) Strong competition

2) Disruption from online digital technologies

3) Instability of the oil and gas industry

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General Electric Company’s Intensive Strategies (Intensive Growth Strategies)

Product Development- The main focus of company is on product development. Growth is

achieved through new products that increase the company’s sales revenue. GE maintains high-
productivity research and development processes. GE focus on product uniqueness and this give GE
edge over the other players in market.

Market Penetration – General Electric company implement market penetration as its secondary
intensive growth strategy. Company grows by increasing its customer base in current markets.

Diversification. Diversification is a minor or supporting intensive growth strategy in General Electric

Company’s operations. In diversification, growth occurs through new businesses. For example,
through this intensive strategy, General Electric has entered multiple industries throughout its history.
As a result, the company now operates in the energy, aerospace/aviation, healthcare, electric lighting,
oil and gas, and transportation industries. However, diversification has only a minor role in
contributing to GE’s growth because it is applied only infrequently, as it entails major investment and
organizational change, among other considerations.

Market Development. General Electric Company implements market development as a supporting

or minor intensive growth strategy. In this strategy, the company grows by establishing new
applications, new markets or new market segments for its current products.

Introduction to Case
GE Healthcare launched a new product known as Lullaby Warmer. This product was launched keeping in
mind that it will be an affordable and high quality product for the treatment of hypothermia. They used
the design of existing GE product and focus on making it hardy, simple to use and less expensive. It was
up to 70% cheaper than imported baby warmers of the same class. Despite of good sales and customer
acquisition GE fails to penetrate in tier 2, tier 3 cities and rural areas of emerging countries. They are not
able to won any Govt. tender. The reason that came out that these customers posed unique issues that
Lullaby Warmer could not address. Then management decides to launch a new product with proper
research and development. For research and development surveys they target countries like India,
Bangladesh, Vietnam, Indonesia and the Philippines. They start prototyping of product, but they relied on
“low fidelity prototyping”. In December 2013 they unveiled Lullaby Warmer Prime. The main highlight
of the product was that it can operate in tough conditions like high voltage fluctuations, heat and dust.
They create the product in such a way that it was easy to operate and service. At the time of prototyping
GE is getting positive feedback. Lullaby Warmer Prime did not look cheap. They conducted a study
which shows that costumer is ready to pay much higher then what they forecasted. They are ready to pay
more than 1000$ for the system. For the success of the new product GE appointed a new general manager
and he was responsible for the success of product in all emerging market including India. New manager
seems enthusiastic towards making this product success. They are more focused to make Sustainable
business model.

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What is Business Model?

According to Osterwalder & Pigeneur business model is a conceptual tool that contain a set of elements
and their relationships and allows to express the business logic of a specific firm.

According to Magretta business model is a story that explain how enterprises work.

Type of Business Model

Unsustainable Business Model- Unsustainable business model focus on extracting value from their
environment and from society. Profit is main motive.

Sustainable Business Model- Sustainable business model focus on adding value to stakeholders ,
environment and society. Profit adds value.

An appropriately designed business model can help firm to overcome key barriers which are hampering
the success of business.

Problem Identification
1) Not Able to Penetrate – As we earlier discussed that market penetration is the secondary
intensive growth strategy of General Electric. In this case GE fails to penetrate into tier 2, tier 3
and rural markets. As the product is developed is targeting developing countries but because of
the failure of penetration in tier 2, tier 3 and rural market, GE was unable to sell the product at
extent they had forecasted.
2) Not able to get any Govt Tender- As we know that government plays an important role in
the development of nation. GE even after a well-established brand was not able to get any
government tender. The reason can be that GE was unable to penetrate the lower tier cities and
rural area.
3) Less R&D activity- GE is well known brand which create a unique product after research and
development which give them edge over the competitors. But it seems that the first product
Lullaby Warmer was made of existing design and not much R&D activities are done. Because of
less R&D activity it fails to sell its product in developing nation. They later came to know that
customer posed unique issues which Lullaby Warmer could not address.
4) Not able to Differentiate- It is stated in the case that Lullaby Warmer was made of existing
design and they focused on making it hardy , simpler to use and less expensive. Because of use of
existing design consumers may be not able to differentiate between the two products offered by
same company.

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Solutions
1) Proper R&D- After facing several issues in selling Lullaby Warmer, GE came up with Lullaby
Warmer prime. They before introducing product to market company officials and engineers spent
a lot in R&D. New product was designed from the scratch. Company resolves all the issues that
were in Lullaby Warmer and came up with the product Lullaby Warmer Prime.
2) Innovation- After Lullaby Warmer GE came up with Lullaby Warmer Prime which was
designed and built in such a way that it will be compatible to operate in tough conditions. It was
capable to operate in high voltage fluctuations, heat and dust. It was made of Kevlar a material
which is used in making bullet proof vests. They made a system which was easy to operate and
service. The component which is not working properly can be unclipped and mailed back to GE
for replacement.
3) Prototyping- Even after investing a lot in R&D Company also relay on prototyping. They share
some of the characteristics of product and on the basis of feedback they constantly redefine
design and functionality.
4) Delivering Value- GE rather than making a product cheap they later on focus on delivering
value to its customers. They built such a good product that market research shows that customers
are ready to pay 1000$ more for the new system. They made a product that was affordable to
masses.

Suggestions
1) Collaboration With Govt Body- As we know govt play an important role in developing
nations, GE should collaborate with Govt bodies so that product can be financed by govt bodies
and the product can be available thorough out the public and private hospitals.
2) Segmentation- The Company should do a proper segmentation before entering into the
emerging markets. They should segment the product on the basis of tier 2 and tier 3 cities. Or
they can segment market on the basis of public and private hospitals.
3) Channel partners- As earlier discussed in case GE was unable to penetrate in tier 2 and tier 3
cities and they are not able to get any govt tender also. This can be possible if they have good
suppliers in emerging market who can sell their product and are available for the after services.

Conclusion
In the end we can conclude that GE done a very commendable job in product innovation and especially
in research and development activity. They fix all the issues which they face while selling Lullaby
Warmer. There next aim was to make a sustainable business model and try their best so that their
product is available for the masses.

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References

https://www.gehealthcare.com/about/about-ge-healthcare-systems

https://www.gehealthcare.com/

https://en.wikipedia.org/wiki/GE_Healthcare