GE Healthcare in India

American University of Armenia

Case: GE Healthcare in India: An (Ultra)sound strategy?

FTMBA 1st year

Course name: Managing people and organizations

Instructor: Mane Beglaryan

Group Members: Sona Hovhannisyan

Shushanik Hovsepyan

` Lilit Karapetyan

Yerevan 2014

Contents

Problem Identification………………………………………………………………………...2

Industry, Competitive and Environmental Assessment……………………………………….2

Quantitative Analysis………………………………………………………………………….5

Subjective Analysis……………………………………………………………………………6

Alternatives…………………………………………………………………………………….7

Recommendations……………………………………………………………………………...8

Defense of Position……………………………………………………………………………..8

Exhibits…………………………………………………………………………………………10

Problem Identification

GE Healthcare, which is one of the six businesses of General Electric (GE), is a multinational American technology and services corporation which was founded in 1890. This company had about 46.000 employees; the revenue had increased by $1.4 billion from 2005 reaching $16.6 billion in 2006. GE Healthcare operates in 6 different spheres: surgery, life sciences, IT solutions, diagnostic imaging, clinical systems and medical diagnostics. The company's offices exist in 11 countries including India. GE Healthcare India is a joint venture between GE and India's third-largest service provider Wipro Ltd. Since 2006 it was a leading company in ultrasound machine market.

GE Building New York

English: The American University of Armenia.

GE Healthcare Ettan Spot Picker in action.

The aims of ultrasound machine (sonograph) utilization were: detection of fetal defects during childbirth, identifying abnormal functions in the heart, identifying kidney stones, detecting prostate cancer early and so on. Despite the overall success in the market, GE Healthcare has faced the following problems

The machine was mostly used for prenatal gender determination, which resulted in the abortion of female fetuses and the number of girls decreased by 10 million since 1986.

Government officials started to seize the ultrasound machines, as according to India's Prenatal Diagnostic Techniques Act (PNDT) of 1994, the usage of machines to determine the sex of unborn children was illegal.

The company faced pushback from activists, as they accused GE of not doing much to prevent the illegal use of ultrasound machines, which resulted in negative PR for the company.

Industry, Competitive and Environmental Assessment

GE Healthcare first...