General Electric Medical Systems

In: Business and Management

Submitted By yvecar
Words 709
Pages 3
Yve-Car Momperousse
AEM 4420: Wednesday Section
Report # 2
October 2, 2013 General Electric Medical Systems

General Electric Medical Systems Divisions (GEMS), the world’s leading manufacturer of diagnostic imaging equipment and a subsidiary of General Electric (GE), has had years of success with its Global Product Company (GPC) concept. The GPC philosophy states that GEMS manufactures wherever in the world products could be carried out to GE’s standard in the most cost effective manner. However, the “In China for China” proposal by the head of GEMS China division, is causing the company to re-evaluate its global positioning strategy. China is the third largest market for medical diagnostics worldwide and is growing rapidly. Core markets are facing decade-long economic challenges and are unlikely to have the growth rates of China. In parallel, technological demands are ever present. The market demand is veering towards biochemistry. GEMS must decide if its growth strategy means focusing on the China market as part of its competitive advantage.

GEMS has a number of strengths. Per the financial statements in the Exhibit 1, the company has the financial resources to invest in its desired growth strategy. Changing a corporate strategy often requires the cash flow to hire and train new talent as well cash to pay for capital and operating expenditures. GEMS has a global presence through its extensive sales and marketing organizations; thus, if there was a decision to focus on the China market, the company would probably not lose its current global market share. GEMS core competencies are supply chain management and its vertical alignment structure through acquisitions. The organization has a solid infrastructure which can be leveraged for expanding into new markets, product development, creating smart partnerships, and achieving market penetration…...

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