Siming Zhu October 8, 2008 AEM 4420 – Emerging Markets Case Summary: General Electric Medical Systems, 2002 General Electric Medical Systems (GEMS) had long been proclaimed an industry innovator in the medical equipments business. A truly innovative and international business, GEMS grew its market share from 21% to around 50% in seven years (’95-’02), and currently generates 50% of its revenues internationally. As of 2002, GEMS was at a turning point in its business, with technological innovations and advancements in genomics that could potentially require GEMS to alter its business model towards biochemistry. However, the main problem conflicting GEMS’ management team was whether to modify their successful Global Product Company (GPC) concept and adopt an “In China for China” policy to direct focus towards the Chinese market. Implementing such a policy offered strong potentials for cost savings and huge sales growth in the Chinese market.
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