General Electrical Medical Systems

Q1 What is the underlying logic behind the global product company idea? Global production company (GPC) philosophy is mainly aiming at producing products that fit global markets with lowest cost and highest profit. This philosophy has mechanisms that supply been applied to different phases of product lifecycle Manufacturing phase In manufacturing phase, cutting costs was achieved by moving manufacturing activities and finally design and engineering activities from high-cost countries to low-cost countries.R&D phase R&D is a real important phase in product development, it is essential to develop new products that bath compete in the global market and considers different customers needs. Having high skilled workers in developing countries, where labor has relatively scorn costs, has alterd the movement of R&D from high-cost countries to low-cost countries, however R&D programs, objectives, and strategies were still managed by headquarter and the unified global senior manageme nt.Marketing & Sales phase On contrary to R&D and Manufacturing, market & sales have to be localized operations according to each region and country. Accordingly, GEMS has established many a(prenominal) offices around the world for sales and marketing management to get closer to the customer. Q2 Should the Global Product Company philosophy be altered to suit the needs of medical diagnostic market in mainland China? China already has the third largest market for medical diagnostic after USA and Japan and it is already the fastest growing, it has the biggest market or low-ended products which has about 20% of the worldwide industry revenues. Accordingly, somehow the tenets of the GPC policies should change to subjoin the market section in the low-end products GEMS should adopt the new In China for China policy and fix the plants in already low-cost countries to China. According to Chinese culture and rules, domestic production will bring greater demand and will also bring a sligh t cost saving that could enable GEMS low-end products to compete with Siemens products that are already being manufactured in China.Dropping the price with 10% can increase the sales with 50%. Although the In China for China policy might ride duplication in infrastructure, the newly expected market share in the Chinese market can absorb this duplication of infrastructure and production. Q3 Should GEMS be pursuing genomics and wellness care IT opportunities aggressively in addition, or instead of the China fortune? China opportunity is a cash cow for the time being, it represents the biggest opportunity in the low-ended products.On the other hand, genomics and health care IT opportunities are the future of the industry they are admirer products. If GEMS did not look for opportunities and investments in genomics and health care IT, then it will lose its market share in the high and medium-ended products which both represents about 80% of the industry market. Accordingly, I see that GEMS should pursue genomics and health care IT opportunities aggressively in addition to the China opportunity.