Genicon is a company with 10 years of knowledge domestic and several real intercontinental success, Genicon was successful in USA, but it quickly realized that it would be difficult to allow them to have lasting growth, since the health care buys medical gear through GPOs. And as small businesses it was very hard to obtain a deal from GPOs because all their financial composition encourages these to purchase gear from leaders companies. Therefore Genicon decided to go international and capture elevating demand right now there.
It became smallest company to market product to European markets with the assistance of BSI. Genicon was already in above 30 foreign markets and was searching in particular on the rapidly growing markets ” Brazil, Spain, India and China ” as potential new options for expansion. So the problem facing Genicon where it should go following?
I. Case key players/Contributors:
a. Gary Haberland, president and founder of GENICON.
b. little development group of Genicon.
c. MEDICA in Germany large tradeshows for medical products.
g. employee of British Criteria Institution(BSI)
e. Genicon shareholder.
II. Problem Identity
a. Domestic business
my spouse and i. Lack of a favorable channel in america.
ii. High negotiating power of potential buyers through group purchases (GPO). iii. Excessive regulatory costs.
n. International organization.
i actually. Sales of medical equipment associated with the volume of tenders which have different regulatory than US and its just for short term. ii. Due to GENCION’s limited resources it was hard to decide which will country to invest in, depend on: 1-Regulation/ Compliance.
2-Bargaining power of potential buyers.
a. Doubt Avoidance
i. Haberland and his firm appear to be good Uncertainty Avoidance very composition and having conservative assets. Hesitance toward new products in medical equipment. ii. Is going with weakened UAI and make several risky assets. and to be flexible and adaptable to any chaos. b. Short and Long term orientation
i. Virtually all the agreement that Haberland had while using international nation are being traditional and current short-run. ii. Search for international country Long term alignment and sacrifice present pertaining to futere. IV. Recommendation
a. Should go with Brazil because of international accepted! Fast method, zero contract price. Easy Regulation/ Compliance.