Individual Assignment -1

Case: Genicon – A surgical strike into Emerging Markets

Your group has been hired by GENICON as consultants on a market selection project to identify a
list of countries that GENICON might consider entering.

Case Questions:

1. Evaluate the market potential of each of the four countries using comparable metrics. Which
country makes the most sense from a purely quantitative perspective? Which variables are
most important in your decision?
India - Significant rise in medical device market in US$bn and INRbn can be seen from year 2003 to
2008 and the forecasted value from 2009 to 2013.
A total market of US$bn 4.01 by 2013 was seen for medical device.
However the percentage of this medical device market over total healthcare market is not increasing but
reducing yearly.
India's emerging middle class would continue to drive demand for health care especially in private sector
which accounted for more than 65% of primary care and more than 40% of hospitals.

China - Significant rise in medical device market in US$bn and CNYbn can be seen from year 2003 to
2008 and the forecasted value from 2009 to 2013.
A total market of US$bn 23.25 was forecasted by end of 2013.
The percentage of medical device market over total healthcare market slight reduction from 2003 to 2008
and similar in the forecasted value from 2009 to 2013. Still this percentage is higher than Indian
market. China's US$ 12.6 billion medical device sector expected to post double-digit growth between
2008 and 2013 by around US$bn 23.25.

Brazil - Significant rise in medical device market in US$bn and BRLbn can be seen from 2003 to 2008
and the forecast value from 2009 to 2013. Total market of US$bn 5.7 by the end of 2013 was
forecasted.the percentage of medical device market over total health Care market slight reduction
from 2003 to 2008 and thereafter slight increase 2008 2013 is observed. Interestingly there were no
import duties or value added taxes on 42 medical devices which is in contrast to many other emerging
markets.
Russia - Significant rise in medical device market in US$bn and RUBbn can be seen from 2006 to 2008
and the forecasted value from 2009 to 2013. Total market of US$bn 2.88 by the end of 2013 was
forecasted. There is slight variation in medical device market as proportion of total healthcare market
percentage.
Out of the four countries China makes most sense from a purely quantitative perspective with US$bn
23.25. Having large population and growing commoditization of healthcare would likely result in
increased demand and thus profitable for business expansion by Genicon in China.

2. Evaluate the market potential of each of the four countries using non-numeric data, such as ease
of doing business, corruption and culture. Which country makes the most sense from less
 empirical data? Does any previous international experience you have — business or travel —
influence your decision?

Ease of doing business - ease of doing business ranking for China is 31, Brazil 124, India 63 and Russia is
28.
In terms of corruption, CPI index score for Russia is 28/100, India and China 41/100, Brazil 35/100 out of
which India and China are still better than rest two.
On cultural comparison, power distance factor for China-80 , India-77 Russia-93 and Brazil-69.

Individualism factor for China 20 India 48 Russia 39 Brazil 38.

Masculinity factor is 66 in China, 49 in Brazil, 56 in India and 36 in Russia.

Uncertainty avoidance factor in China 30 India 40 Russia 95 and Brazil 76.

Long term orientation factor 87 in China, 51 in India, 81 in Russia and 44 in Brazil.

Whereas indulgence factor is 24 in China, 26 in India, 20 in Russia, and 59 in Brazil.

China makes the most sense from less empirical data for business expansion by Genicon. However I don't
have any prior international business or travel experience.

3. Combining data and management instincts, what country is the best fit for GENICON’s
products, business model, distribution strategy and future revenue opportunities into similar
countries?

Taking Genicon's current situation into account and combining data and management instincts China is
best suitable for next move for Genicon. Having US$bn 23.25 for medical device market , high long
term orientation, distribution strategy , business model future revenue opportunities China is
preferred.