GE Healthcare in India: Locally Driven InnovationGroup #3 Mini Case Study - Presentation By:Chandra Vijay, Gaurav Vasani, Jeff Dagg & Varun Thakur

Table of Contents

GE in India01

GE Healthcare in India02

GE’s Mac 40003

Case Questions04

Questions05

GE in India

JobsGE employs over 13,000 people in India at various branches to

create jobs in the economy.

ExportsGE exports over $1 billion in products and services from

India.

R&DJohn F Welch Technology Center (Bangalore) collaborates with GE

to conduct R&D worldwide.

03

Local InvestmentsGE Healthcare, has invested in local joint ventures and manufacturing plants since the beginning of the 1990s, to reduce costs and increase local sales.

GE’s Mac 400GE’s Mac 400 was conceptualized, designed, and sourced, as well as manufactured, in India, all following local customer requirements considering needs of local people.

GE Healthcare in India

04

GE’s Mac 400

VideoGE Health Commercial - ECG MAC 400

A humorous approach to promoting health care in India. Filmed and focused on India rural areas.

05

Mac 400

Ultra-portable electrocardiogram

Made in IndiaSold well locally, because it

costs one-third of the price of an equivalent imported product

GE’s Mac 400

Mac 400Light-weight & battery-

operatedEasily serviceable making

this ideal for India's rural area

06

Mac 400

2000 of 7500 units have been bought by Indian customers

Rest have been exported in other countries

Case Questions

In what ways is GE's Mac 400 ECG the result of 'local-for-local' innovation?

‘local-for-local’: new or customized products and services entirely developed by locals subsidiaries that suite the specific characteristics of

the local market or country condition GE's Mac 400 was conceptualized, designed,

and sourced, as well as manufactured, in India, all following local customer requirements

07

Case Questions

Why would GE establish R&D facilities in India?

GE's India-based R&D efforts are creating products that are being sold globally

Drivers that underpin the focus of healthcare product innovation in India, including accessibility, quality, and low cost, apply to other developing and emerging markets

New products designed and developed in India are likely to sell well in these markets

Other advantages of R&D facilities in India: IT growth rate availability of resource and labor

08

Case Questions

What indications are there that the Mac 400 ECG has become an example of 'local-for-global' innovation?

‘local-for-global’: locally developed product or service turns

out to fit other markets beyond the location of the subsidiary

responsible for creating it 2,000 of the 7,500 Mac 400's that GE

Healthcare has sold have been bought by Indian customers

The rest have been exported in other country markets

09

Case Questions

How can multinational firms destroy their own profits by engaging in low-cost or 'bottom-of-the-pyramid' innovation?

Low cost innovation products manufactured in developing and emerging markets will lead to cannibalization

The product will compete with products in other markets which has higher profit margin due to different brand positioning

In CASE: Mac 400 have the potential to significantly undercut more expensive (and profitable) products sold in more advanced markets like Europe and the United States

10

Thank You! Questions?Case Taken From: International Business, Sixth Edition by Collinson, Simon & Rugman, Alan M.