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.
The Indian pharmaceutical industry enjoys certain advantages, which include low cost of innovation and capital expenditure, and strong domestic support in production, from raw material requirements to finished goods. The competitive structure of the pharmaceutical industry was being redefined due to the threat of new entrants, intense price competition, entry of large players, and new regulations and rules as well as a shift in focus. In addition, the partnerships between pharmaceutical and biotechnology companies were growing rapidly. The global pharmaceutical market is undergoing rapid transformation. There has been a dramatic shift towards emerging markets as western markets slow down.
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...
Saturation of domestic markets and the need by firms to diversify their markets have provided firms with the need to go international (MA sum, & Fernandez, 2008). Internationalization can be defined as the act by companies to explore international markets, although there has not been a clear definition of internationalization (Andersen 1997, p.28). Internationalization is a huge decision by firms and the wrong strategy can lead to ultimate fall of the organization. Internationalization allows firms and companies to own or control businesses and activities in several countries; a process that affects the whole organization making it more international (Dunning, 1993) and by going international, companies can gain competitive
The first step to understanding the basics of traditional Chinese medicine is examining the history of the development of medicine in china as a whole. While exact da...
(2017). China: International Health Care System Profiles. International Commonwealth fund.org. Retrieved 19 November 2017, from http://international.commonwealthfund.org/countries/china/
The position of the firm in the network is the most important driver for internationalisation and is based on two elements: degree of internationalisation of the firm and degree of internationalisation of the market. Based on this, a typology of 4 market positions are
Market entry of a product is an extremely important concept to consider. There are multiple forms of market entry and deciding which form would work best for the situation could either benefit or harm the company. Exporting and importing is one form of market entry. This can be done either directly or indirectly. The less directly the firm company deals with foreign companies, the less likely they will build their knowledge and experience of how to do foreign business. This can limit further expansion. Firms that handle products directly are more likely to glean more information and receive competitive advantages. This in turn, allows for more rapid expansion, better control, and strengthening foreign trading partners’ relationships furthering international growth and success. Disadvantages would be identifying and targeting foreign suppliers and/or customers and finding marketing channels. International intermediaries are one form of exporting and importing in market entry. Intermediaries have both direct and indirect importers and exporters. They can help with difficult yet important details like documentation, financing, and transportation. They also help to identify foreign suppliers and customers to aid the firm with long-term and short-term market penetration efforts. Intermediaries, along with export facilitators can bring the global market to the domestic firm’s doorstep by assisting to overcome financial and time constraints. Export Management Companies (EMCs) is another form of exporting and importing within market entry. They are firms who represent others for a commission or who work as distributors that perform specific international business services. They usually focus on one geographic area where their expertise allows them to offer specialized services. EMCs have two primary forms of operation: They perform services as agents or they
Also the companies in the industry must have a license. Intellectual property rights are a key issue facing foreign companies that enter China. They have to make sure that their trademarks and patents are registered in China. Brand names are significantly important for chain or multi-establishment operators to build a strong brand presence in the region. Especially, product localisation is very important for overseas companies. China has different regions, so tastes and consumer differ by
Sun, H., Tian, Y., and Cui, H. (2001) “Evaluating Advanced Manufacturing Technology in Chinese State-Owned Enterprises: A Survey and Case Studies,” The International Journal of Advanced Manufacturing Technology, vol. 18, pp. 528-536.
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.
This increasingly sophisticated health care technology definitely does not come cheap. The increasing population of people in our country certainly proves to be a challenge to the government at this point. The life span of people of the modern age is deteriorating rapidly due to increasing diseases and strong, drug immune viruses or bacteria that is spreading rampantly throughout our great nation. This situation certainly needs the government to invest on more expensive health technologies but the working population which could afford to pay for this expensive equipment has reduced. So, it is not economically viable for a government to invest in this expensive health care machines. For example, an MRI machine costs between RM 750,000 to RM 3 million. A PET scanner on the other hand ranges between 1 Million US Dollars to 2.5 Million US Dollars. A CT scanner costs up to about a staggering 300,000 US Dollars. A wide range of complaints arises among doctors these days that the insurance companies encourages them to discharge patients sooner because health care has become very expensive. Even though this takes care of the immediate costs, the patient...
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