GENICON

A SURGICAL
: STRIKE INTO
EMERGING MARKETS

Anandita Jain 18PGDM069

Ramkumar MT 18PGDM038
Rahul Nambiar 18PGDM036
GROUP 6 Sankavi Puhazhendi 18PGDM126
 DECISION OF GARY
HABERLAND
• Gary Haberland made a good decision as mentioned in the case GENICON was a
start-up company, and to grow and diversify, new markets should be explored and
should be developed.
• International markets was expected to grow at much faster rate than 5% then
USA.
• Also, according to GENICON business plan, growth rate was estimated much higher,
and the next reason for barrier to gain market share in USA was that the distribution
was controlled by GPO which gave contracts only to big companies.
• And also, we suggest GENICON to keep a link with the USA market as, this will help
GENICON to develop themselves when they become an established company.
 INDIA
• Fastest growing population and
second largest medical devices
market
• Medical tourism is expected to
increase to 3.9 Billion.
• Opportunity as India’s imports
increased at almost 23% for
medical devices.
• Forecasted 11.3% YOY
• Growth for India’s 2.35 Billion
device market
CHINA
• China’s 12.6 Billion
medical devices sector
was expected to post
double digit growth
• By 2012 the value of
medical device industry
was expected to reach
20.6 Billion dollar that is
8.2 % share of overall
healthcare market.
BRAZIL
• GDP growth rate expected to
average 6.6% annually
through 2013.
• Law passed in 2008 obligating
the country to increase
healthcare spending to
minimum of 10% of GDP.
• Brazil’s medical device
market
value at 3 Billion Dollar
was the largest in Latin
America.
• Health budget increased
by 21% in 2006.
RUSSIA
• Total private and public
health care spending
would reach 97.4 Billion
dollar by 2013 equivalent
to 3.8 % of GDP.
• Russia dollar 1.98
Billion medical device
sector displayed long
term growth
potential.
• Large number of
hospitals (that is
10,000) and
healthcare
expenditure at 39.4
Billion Dollar.
 MARKET POTENTIAL AND MARKET
DEMAND
• Market potential is the entire size of the
market for a product at a specific time.
It represents the upper limits of the
for a product. Market potential is
market
usually
measured either by sales value or sales
volume.
• E.g Brazil in 2006 is 2.1 BN and the
forecasting in 2013 is 5.7 BN so the market
potential will increase by 171%
• Demand is the quantity of a good or
service that consumers and businesses are
willing and able to buy at a given price in
each time period. Market demand is the
sum of thedemand for a product from
individual
buyers in the market.
• E.g India is the fastest growing economic
country with having wealthier society, tax
reforms. India also has a growing
infrastructure. In 2003 the medical device
market was 66.82 INR Bn and the
forecasted was 182.61 INR Bn in 2013
(173%)
WE CHOOSE
INDIA
• Fastest growing population and second largest medical devices market
• Medical tourism is expected to increase to 3.9 Billion.
• Opportunity as India’s imports increased at almost 23% for medical
devices.
• Forecasted 11.3% YOY
• Growth for India’s 2.35 Billion device market.
BASED ON SOLELY QUALITATIVELY BASED MARKET
ANALYSIS WE CHOOSE BRAZIL
• Ease of doing business
• Low Competition
• Easy and quick product registration
• Large number of importers and distributions
• Brazil government does have low import tariffs, along with no import duties,
or value-added taxes on up to 42 medical devices.
USING BOTH QUANTITATIVE AND QUALITATIVE VARIABLES,
WHICH COUNTRY SHOULD GARY HABERLAND CHOOSE?

INDIA
• Large population growth and large market for medical devices.
• Increase in awareness for medical issues by Indian government.
• Adopting and Emerging of various new and innovative treatment method in
India.
• Also, continuous increase in imports of medical devices by Indian market.
• Fastest growing economy, besides increase in lifestyle, high disposable
income.
USING BOTH QUANTITATIVE AND QUALITATIVE
VARIABLES, WHICH COUNTRY SHOULD GARY
HABERLAND CHOOSE?
BRAZIL
• High demand of innovative and disposable surgical instruments in Brazil.
• Less competitors in both imports and exports terms.
• Process for imports is cheap and faster.
• Highest healthcare spending per GDP were generally positive with nominal
growth.
• Ease of doing business.
• Developing economy, so greater chances to occupy market.
COMPLICATIONS EMERGING FROM CONDUCTING A
MARKET ANALYSIS IN A FOREIGN COUNTRY
• Government Law and Regulations
• Language Barrier
• Import Export Costs
• Distribution channel
• Understanding the PESTEL
factors
• Perceptions on medical treatment
• Education- Medical Practices
THANK
YOU