GENICON, which is a company based in the U.S., was founded in 1998 by Gary
Haberland. The company specializes in the production and distribution of disposable
laparoscopic medical devices. The main concern for the company is the strategy to employ in
order to gain competitiveness and how the company will be successful by targeting specific
markets on the international stage. Having taken 80% of its products and sales to the
international market, the company has managed to create a presence on over 30 international
markets and is looking into ways through which the company will be able to gain more
recognition within the global market. It is hard for the company to be able to expand its
operations and make its products available in more than one country at once. Genicon must
devise a way through which it will be able to expand its operations to other countries and
knowing which country to start with and which country to follow.
The potential international markets for the company are narrowed down into Brazil,
India, China, and Russia. Each of the market segments was analyzed in terms of the ability for
Genome to expand its operations, and it was determined that the best market locations are in
Brazil, followed by China, India, and lastly, Russia. The final decision that Brazil is the optimal
market for the company is due to the fast process involved in registering a product, the medical
device market that receives fast growth, and the experience present in Genicon in expanding to
such market segments in the international sphere.
In order to be able to expand operations into new market segments within the international
market, Genicon must make the choice on which of the international market it should enter first.
The best of the promising countries to enter have been proposed and identified by the company
to include China, India, Russia, and Brazil.
Besides having to deal with the challenges of entering new market segments, some of the other
problems and barriers that ought to be considered by Genicon while coming up with its entry
I. Determining the right method to use when entering the new market segment
II. The limited product selection at Genicon and mainly deals with disposables that have
been priced in premium terms. In line with this, the annual growth rate of the
international market of laparoscopic devices remains at 7.3%, which means that the
company must have to consider expanding on the product range in order to address the
changes in the global demand.
III. As Genicon has specialized more in the production and distribution of medical products,
a key concern for the company is the possibility that it will not be able to meet the
standards and the requirements of some of the countries.
IV. Limitations in terms of the human and the capital resources to facilitate the expansion to
the new market segments
V. The possibility that there is no deal with Brexit.
Implications to Personnel
If the current stalemate faced by the company does not find a solution, then the personnel
and the workforce may be facing terminations. This will have a negative impact on the revenue
leading to bankruptcy, layoffs, and incompetence at the organizational level. This will arise in
the event that the decision made by the executive has negative impacts on the company. Due to
the high likelihood that the Brexit process will result in no deal, then the personnel of Genicon
will end up losing their jobs and facing terminations depending on the impact that exit by the
United Kingdom will have on the revenue (Rana, Prashar, Barai, & Hamid, 2020). Other
negative implications that this will have on the company and the personnel include the lack of
compatibility among the employees due to the culture that varies and due to the high level of
dissatisfactions among the employees on the nature of their jobs.
Implications on the Environment
Due to the size and the nature of operations of Genicon, the impact on the natural
environment of the countries that the company will expand the business will be minimal. This is
besides the contribution of the company in terms of the solid waste resulting from the medical
equipment disposed to the environment. However, in terms of the impact on the social
environment, in the event that Genicon will not be successful in its expansion to the new market
segments, the global market for the medical products will end becoming less competitive due to
the role of the company in the global market for medical devices (Nagy, Bennett, & Graham,
2019). For this reason, the products and the procedures involved may end up becoming more
expensive and thus lowering the ability of an individual to access healthcare.
Given that the company has experience in operating and serving the market located in
Latin American countries such as Peru and Columbia, there is an improved level of familiarity
with this market region. Hence, it will present an advantage for the company due to the
familiarity that has already been acquired. To be able to effectively penetrate and establish
within the Brazilian market, the company will have to identify a distributor in the market region
to help the company. This will be the best approach for entry given the size and the limited
number of resources in the country, which do not make the establishment of a branch office in
this country the best choice for the company. In addition, the company has experience with this
form of entry whereby the company gets to choose a local distributor given that it has used the
same strategy to make entry into other countries more so, those located on the European side of
the market. Also, this will be the best approach also given that the company will get to work with
distributors who have an established network within the urban settings giving the company the
best entry strategy for the key urban areas in the country, such as Sao Paulo and Salvador.
Notably, the disadvantages that come about because of no deal in the Brexit process will also
be mitigated by choosing to enter Brazil as the new market segment for the company's products.
In addition, the company will also enjoy the advantage of having a speedy process in company
and product registrations, and yet the entire process will take a short period of time of
approximately three months. Given the size and the high potential in the Brazilian market, the
profits gained will be enough to compensate for the losses incurred because of Brexit. For this
reason, the advantages gained by the company through the choice include:
I. High spending by the government in the health sector of the country
II. Genicon is already present in Latin America
III. The high and constantly rising demand for medical products in Latin America
IV. It is the largest medical device market in Latin America.
V. High transparency in the market sector,
VI. Less costly registration process.
VII. Low competition within the domestic market
VIII. Low tariffs imposed on the medical devices sold by the company
IX. Lack of import duties.
X. Low rate of exchange.
On the other hand, the disadvantages faced by the company as a result of choosing Brazil as the
new market segment will include:
I. The high level of competition from the international market
II. The country has a slow rate of G.D. growth compared to other countries in the Latin
III. Low stability and efficacy by the government
IV. The high rates of crimes.
China remains the world's second-largest market for medical devices, and hence making
a choice to enter the Chinese market will be lucrative for Genicon if the process is done in a
careful and successful manner. Having a consistent double-digit rate of growth, the ability of the
company to enter the medical devices market of China will put the company in the same
platform as other medical devices companies in the U.S that have made a choice to enter the
Chinese market with the notable export of the $5 billion is from the U.S in 2018. This amount is
expected to have an increase over the next couple of years, making the market more lucrative.
Despite the large market size presented by China, U.S. imports remain relatively low due to the
complicated nature of the registration process in the country.
If Genicon will make a choice to make entry to the Chinese market segment, it is
important that the company make an agreement with the State Food and Drug Administration to
enhance the product registration process. This is important given that the product registration
process could drag along and take a total of one year, which will be a source of delay for the
company. During the registration period, the company will have to work through a local
distributor who will act as an intermediary for the company (Rana et al., 2020). Notably, the
business relationships in China takes a very formal approach, and therefore, having a party as an
intermediary that has the required experience, knowledge, and connection will ensure that the
business process in the country is beneficial to the company and will positively enhance the
image of the company. As the market continues to attain growth, the company will also grow in
terms of its profitability and sustainability, along with giving it the chance to leverage the
products as stand out and premium products within the existing selection. The advantages to
enjoyed by the company include:
I. High growth within the medical devices market of China
II. A large medical devices market that is valued at $78.8 billion
III. High growth potential in the medical devices market of the country
IV. The country has one often largest population in the world
V. Aging populations leading to an increased need for medical devices
VI. It is one of the fastest-growing economies in the world
VII. The country enjoys a relatively high economic stability
On the other hand, the disadvantages to being faced by the company because of choice include:
I. An increased rate of competition from within the domestic and the international market
II. The process of registering a proud in the country is long and labor-intensive for the
III. Vulnerability to the effects of the global recession
IV. Inconsistency in terms of patent protection and intellectual property enforcement
V. The high levels of poverty
VI. Shortage in the number of medical personnel and the needed infrastructure
Before embarking on making the target market for Genicon to be India, a few factors to
consider about India as a new market segment is that it is a relatively small market. However,
despite the market is relatively small, the steady growth that has been experienced by the
company is a growth opportunity for Genicon. Before embarking on the business of ensuring that
the medical products and devices produced by the company are present in India, the company
must have to get in touch with a local distributor of their products. The distributor will be
responsible for getting in touch with the Central Drug Standards Control Organization (CDSCO),
who will receive the submission by the company to have their products registered and
consequently approved. Following the approval, it is important that the company gets in touch
with a local distributor who has pre-existing relationships in the market, preferably one with
experience in the rapidly growing medical sector. This process will be simple for Genicon, given
that the approach will be like those that have been used in the other market sectors, such as in the
entry to the European market.
Making a choice to enter the Indian medical devices market will be a long-term
investment for Genicon due to the current size of the Indian market, and the expansions realized
in terms of price control will be a form of a hindrance for the realization of immediate results by
the company. For this reason, the advantages associated with pursuing this option include:
I. A population that is growing at a fast rate
II. The rising level of incomes among the populations
III. Government encouragement of use of foreign investment
IV. The rise in the practice of medical tourism
On the other hand, the disadvantages associated with the choice include:
I. Weak laws to protect intellectual property
II. The people face high levels of poverty
III. High risk arising from political corruption
IV. Poor ease of doing business
In the long-term, the Russian market could end up becoming unpredictable for Genicon due to
the high rate of political turmoil that has been experienced by the country over the years. In
terms of history, the relationships that have existed between the U.S and Russia have remained
poor over the years. For this reason, as an American company, Genicon will experience a set of
difficulties when making entry to the Russian market and having to deal with difficulty if there is
a rise in tensions. The potential effects if there is a rise in tensions in Russia include instances on
which there will be increased tariffs, having to deal with trade embargos and sanctions.
For Russia, the country will have the chance to make entry into a large demand for medical
devices that have not been adequately met by manufacturers. In addition, there is a high
preference for manufacturers from outside the country, and Genicon will be well suited for its
market segment using authorized disturber from the region (Nagy et al., 2020). Due to the
transient nature of regulations in the Russian segment, the distributor chosen by the company
will have to be ready and adaptive to have minimal disruptions if the regulations for operations
in the country are changed (Rana et al., 2020). The advantages of choosing Russia include:
I. Largest medical devices market in the central and eastern sides of Europe
II. Preference for foreign manufacturers among the consumers
III. An aging population is increasing the demand for medical devices
IV. Low tariffs of medical devices.
V. Less competition from the domestic market
On the other hand, the disadvantages resulting from the choice include:
I. Small population compared to the other markets.
II. Poor ranking in terms of the ease of doing business
III. Hugh political instability
IV. Historical tensions with the U.S
V. Poor legal protection
VI. Comparatively, it is considered as the market that is least competitive with low chances
of growth in terms of business.
VII. Poor legal safeguards to put in place
VIII. Small MD market that is valued at an approximate $4.6 billion
IX. The GDP growth rate of the country is low
Following the evaluation and the analysis of the available alternatives for Genicon, the
best option for the company will be to expand its operation to the medical devices market of
Brazil. China will be the next step for the company after pursuing the option of expanding to the
Brazil market. Although the rate of growth of the Brazil market is not the same rate as that of
China, there is an ease in doing business with less interference from the government as well as
easier registrations of products in the market segment. For this reason, Brazil will be the best
opportunity through which Genicon can gain growth and expand to the global market (Morgan,
Feng, & Whitler, 2018). Even though the value of the medical devices market in Brazil is less
than that of China, the growth rate of the market gives the company enough room and space to
expand and grow.
In carrying out a comparison among the alternative markets available for the company,
the medical device market of Brazil is second after that of China. However, the rate of growth
that has been observed in the Brazilian market will provide a good time and space for Genicon to
grow and manage to expand its market share over the years due to the steady expansions and the
growth in the Brazilian market. In addition, the Brazilian market is keen on investing more in the
health care sector and improving access to the health care sector, which makes it one of the
potential clients for Genicon. For this reason, some of the prominent factors for the final decision
made include the fact that there is increased ease of entry to the Brazilian market and that it will
take less time for the company to make their products available in the market sector, given the
nature of Brexit and the high possibility that there will be no deal with the U.K and the adverse
consequences resulting from the absence of a deal. However, the advantage, in this case, is that
the ease of product registration and penetration to the Brazilian market will be able to offset the
losses that will be realized because of a no-deal Brexit. The alternative markets that are available
for the company pose a greater challenge in terms of the ease of entry, and the company will
have to deal with a wide variety of barriers to gains successful entry into the market.
As has been illustrated before, the process of expansion of Genicon and the process of
making its products available in the European market is the same as the process of making entry
into the Brazilian market. Some of the notable characteristics of the Brazilian market include the
fact that it is a highly fragmented market. There are large populations of importers and
distributors, giving a high potential that there will be a consolidation in the future like that which
took place at the time which Genicon was making entry to the European medical devices market.
In addition, Genicon has been present in Latin America for some time, and the process of entry
to the Brazilian market may have the same forces and factors. In addition, its previous presence
in Latin America will boost the brand recognition process in the new market segment. The
experiences that have been gathered by Genicon over the years with having to deal with the
fragmented market in the European segment coupled with the long presence in the Latin
American market will be helpful in optimizing entry and the brand image of the company during
entry to the Brazilian market.
The central concern for Genico must decide whether it is able to expand its activities and
business to the developing countries or not. The current situation does not allow it to expand
operations into more than one country at the same time. However, the four countries presented is
a list of the possible destinations and new market segments to which the company may opt to
expand its operations into by choosing the best location to expand operations. All the countries
listed as the potential destinations for Genicon have indicated a huge potential for growth over
the last ten years. The presence of better economic conditions has facilitated the growth and the
emergence of the middle class, which have resulted in an increase in the level of demand for
medical products and devices that have been produced both locally and imported. However, this
is not enough motivation to make a choice to invest in the identified countries. Detailed analysis
and review of the current market conditions are important to determine the final choice of entry
into the new market segments. Importantly, it should be noted that the cost of entry into the new
market will cost approximately $50,000. At the same time, the company will have to incur an
additional $20000 to cover other important activities such as the assessment of the available
distribution channels and sampling the market to identify the structural and the administrative
inefficiencies that must be dealt with. The entry decision will be on the basis that the benefits
that will be realized will be more than the costs involved in entry to the new market segment.
In the short term, the key undertaking s to pursue Genicon will include:
I. Provide advice for the team on the final decision made, then begin the preparation for
what to be expected in the new market. The approach and preparations process will vary
from one employee to another depending on the scope of their roles and responsibilities
II. Begin preparations for the legal processes that will be involved in the entry. This includes
collecting all the documents needed to be able to export medical devices from the U.S to
III. Search within Brazil to be able to determine and locate the optimal distributors for the
company's products with high similarity to those used to distribute the products of the
company in other sections of Latin America.
IV. Make the preparations that are needed to begin the process of exporting the products to
the Brazilian market. This will entail putting in place the needed strategies to facilitate
the process of transportations and ensuring the facilities to be used for distribution are
On the other hand, the medium-term plans for Genicon will take place within a period of 6
months to a period of one year and will entail:
V. Assuming that the process of registration will be complete for Genicon within a period of
six months, then there will be regular shipments of the medical devices to the Brazilian
VI. Perform regular evaluations of the process of exporting medical products from the U.S to
Brazil and make the needed adjustments and improvements that are needed.
VII. Begin developing, maintaining, and building on relationships with the Brazilian
The expectation in the long term is those that will take a length of time that is one year and above
and will entails:
VIII. Carry out a review of the progress that has been made in terms of growth and
sustainability by Genicon within the Brazilian market. This will include an analysis of the
internal processes that affect the growth rate or leading to the presence or absence of
growth within the Brazilian market.
IX. Continue in developing strong business relationships and ties in Brazil.
X. Enter into larger contracts with large bodies and organizations such as the government in
order to be able to supplement the gaps in the market share, given that the market is still
promising and full of opportunity through having adequate preparation.
XI. Depending on the level of success realized from the market, consideration will be made
on the expansion to the Chinese market, given that it is still promising and having to
XII. If the company is not successful in its expansion to the Brazilian segment, the
company will explore the options of having to withdraw from Brazil and channeling its
focus on new markets or developing the existing markets and developing the business
XIII. Entering into larger contracts
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