Rationale/Introduction
Since the world medical device markets have been growing rapidly, the medical device manufacturing has been becoming an emerging industry with good prospect. According to the analysis of Chinese medical product industry, the global sales revenue of medical products has grew from 187 billion USD in 2001 to 355.3 billion USD in 2009, of which the growth rate has exceeded the global GDP’s. Over the past two decades, China has had a massive impact on the medical products market due to the open-door of the market supply for China. As the emerging hi-tech manufacturer, Chinese brand medical products have been gradually accepted by the international markets for their emerging new technology and better quality. China plays a more and more significant role in the international medical products market. This development attributes to the internationalization of the Chinese medical products industry that involved the integration of the Chinese domestic market into the international markets.
The latest figures show that the medical apparatus manufacturing has been shifting to China, China is expected to be the world manufacture of medical apparatus. It matches the reforming point of Chinese industry, which is developing from labor demanding manufacturing to technology and innovation-oriented areas. The figures in analysis of Chinese medical product industry show that the export of Chinese medical products succeeded in trade surplus from the year 2005, which contributes tremendously to the overall Chinese export revenue.
In many cases, motivation to gain access to industrialized markets and to gain access to superior technology, management resources and knowledge are the most driving factors of the Chinese medical pro...
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...process, such as tariff barrier, complicated registration for permission of entering market. Chinese medical devices industry has been developing rapidly in recent years, and gained more and more approval in the international markets. However, it’s not the same as other industry’s internationalization process for its higher technology requirement and stricter marketing regulations, and the different kinds of registration for entering markets also attributes much cost to enterprises.
This research will thoroughly identify the motives, barriers of the Chinese medical device industry’s internationalization, and examine the success factors in both the steps of theory building and cases study. As a result, a systematic knowledge for the Chinese medical device industry’s internationalization will be presented to the reader, which will fill the gap in the current research.
Given the information in the case pertaining to products of Genicon, various factors are analyzed for the choice of the country for international expansion. The structure of the healthcare system, the size of the total market, distribution structure of health care products in target countries and purchasing power parity are the key determining factors for the choice of the country for international expansion. The analysis below carries out an evaluation of the attractiveness of the particular region for Genicon’s international growth.
The globalization of trade is predominantly relevant for health services that have become a commodity that can be traded in distinct ways. Primarily, health services can be provided across countries. Examples of this include a range of telemedicine tools like tele-diagnostics and tele-radiology as well as medical consultation through traditional and electronic methods. Secondly, patients can travel overseas/abroad to obtain health care or use certain facilities available elsewhere (Pang, 2004).
Research and development is a very important aspect of this industry and it is very draining on a company's funds. Great emphasis is also placed on product placement and marketing. Though these products are usually marketed towards industry professionals such as doctors and hospital management.
The next driver of importance for world health is technology. The implementation of innovative medicine is a primary interest for the U.S., Japan, and Germany (Reid, 2008). Unlike these other countries, the United States has a greater commitment to technology than it does to health care expenditures (Barton, 2010). This regard has led to changes in clinical practices and the level of knowledge of consumers (Drivers of change). Patients gather information pertaining to disease or illnesses from reliable m...
Johnson & Johnson (J&J) is an American powerhouse in the healthcare industry. It is number 46 on Forbes list of the World’s Biggest Public Companies (DeCarlo, 2013). It has sixty international locations. J&J has been involved in health related products since 1886. The management structure is decentralized allowing for strategic operations depending on need and location. There are four central business divisions, consumer, pharmaceutical and medical devices and diagnostics. J&J has a significant presence in China and has targeted dominant health concerns, which includes the health issues of their aging population. J&J are not the only global company positioned to address China health care needs. Emeritus and Merrill Gardens are two Seattle, Washington companies whose focus is on senior care. These two companies met in Hong Kong with a group of global investors to discuss the development of the Western for...
Saigusa, O. (2006). Japan's healthcare system and pharmaceutical industry. Journal of Generic Medicines , 4, 23–29.
This essay will analyse Tata Motor Company and its motive for internationalization and include the background information on the company then it will go on to consider the definition of theories as well as applying them to the Company. The paper will focus on theories which are Dunning Eclectic paradigm; Learning Theories and Porter Diamond .Tata Motors Company is one of the largest automobile companies in India with a 42 billion organization. Further the product range of automobiles, information and technology is varied and covers almost all the segment of the car market as per the Tata Motors (2014).The research shows (Business Leadership Management (BLM), 2013) the motive for internationalization is due to its acquisition and its ease the
... to practice using Western medicine. When interviewed, many doctors have come to find that "if someone died in your care and you had relied on Chinese medicine alone, no authority would defend you against accusations of neglect. If you used only Western medicine, no one would dare blame you". In China, patients are given many treatment options, and it is ultimately up to them to decide their preferred treatment. This dynamic of multiple healthcare practices is unseen in the rest of the world.
The information in this paper will discuss the evolution of health care industry over the last decade. Over the last decade, many changes in technology, economic perspective, and finance have made a prevalent impact in health care. Health in the early 1990’s was simple and minimally effective as the different developments were introduced such as medications, immunizations, antibiotics, testing and treatment for fatal conditions and diseases, such as polio, chicken pox and many others.
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...
manpower and a large base of FDA approved plants, positions India high on the outsourcing
Medical technology encompasses a wide range of health care products that are used to diagnose, monitor, and treat diseases (Chandra & Skinner, 2012). Medical technology may include medical devices, vaccinations, pharmaceuticals, information technology, biotech, and healthcare services. Such technologies are intended to improve the quality of health care; while also containing cost, through earlier diagnosis, less invasive treatment options, reductions in hospital stays, and rehabilitation times. One of the leading theories is that medical technology is growing faster than expected and wit its advancement, it has become a major contributor of health care expenditure in America.
I also found that new product development for international business is more challenging against the competitor. Because product life cycle was found to be shorter in international market due to increase level of competition. Moreover during the assignment work I never knew that cultural issue were to important in international
Government funding for medical research aids society. This is because financial investment in research and development (R&D) in various areas of healthcare supports the medical system, medical professionals and citizens due to improved diagnosis and treatment. In particular, government funding for pharmaceutical research contributes to social well-being. Research conducted in China for decade 2002-2012 (Qui et al. 2014, p.3) shows that the increase in funding by both public and private groups has contributed to an expansion of the pharmaceutical industry across three sectors: chemical, traditional Chinese, and bio- pharmaceutical medicines. According to the detailed analysis of government statistical data(Qui et al 2014,p.5), Chinese government spending on medical research has been targeted on specific provinces which produce botanical resources, which are in...