Essay About Sector Of The Us Economy And Prestigious Hospitals

Marketing Case
Receive a favorable response in the media when launch healthymagination Healthymagination can brand GE as a more caring conglomerate Reason: However, the market was growing. So GE need to make some adjustment to compete in this market. Strength GE has more than 40% market share of MRI and nearly 50% market share of CT in US.Compared with its competitors, GE had significant brand equity with customers across the globe, due to a long record of creating superior products as well as extensive sales and service support—–according to different customers , they used different sales strategyGE had a National Account sales team with a high level of technical and commercial expertise to serve the prestigious hospitals( a hundred in US)Weakness GE consolidated net earnings reduced 27% from 2008 to 2010. Healthcare is in the same decreasing trend. The operating profit of GE healthcare decreased 23% from 2006 to 2009Exhibit 4 has disadvantage of main imaging technologiesOpportunityThe Healthcare market is huge and growing. Healthcare was a $2.5 trillion sector of the US economy, and $5 trillion of worldwide. It constituted about 16% of US GDP and had been rising significantly faster than GDP: total spending for medicare and Medicaid has grown 300% from 1.7% of  US GDP in 1975 to 5.7% of  US GDP in 2008.Aging of the population Total spending for healthcare would be 31% of GDP by 2035 and would increase to 46% by 2080.Affordable care act would bring 32 million uninsured people into the healthcare systemFor medical devices used in clinical settings constituted a market greater than $100 billion in the US (2008), which in turn was estimated to be 42% of the global marketDeveloped countries provided a large and stable market while developing countries provided significantly higher growth opportunities. The projections in MRI and Radiography grew fast, exhibit 5Exhibit 6, GE had high marker share in ultrasound market; 市场分布情况，北美占主要，ge在北美优势ThreatAffordable care act might make hospital and insurance providers pay more attention on costIn US Cardiac X-Ray market, GE only accounted for about 20% market share while Philips had about 50% and Siemens had about 25% market share. Hospitals centralized purchasing and procurement, several stakeholders, pay more attention to how insurance companies, governments and other payers perceived the value provided by the medical equipment.—- a reason GE need to implement new criteria, because hospitals evaluate new products from the perspective of customersSpending and enthusiasm for new products had declined as reimbursement models changed, with several major hospitals delaying purchasesThe time between new product introductions and market acceptance has been lengthening over the years from 3-5 years to a decade in some cases.The test and treatments that people take will need to meet medical necessity. From an imaging perspective, hospital will have more patients to image, but each patient will have less imaging—-because of considering reimbursement; Exhibit 6, GE and Philips had almost same marker share in ultrasound market Table1: SWOT Analysis for HepEchoTarget: mid tier general imaging customers —liverTarget market: Japan, 400 millionS:More effective identification of lesionsW:Huge investment($ 36 million)O:700,000 people were diagnosed with liver cancer worldwide eachAge correlated; aging of population600,000 deaths each year; early detection of cancer was critical to reduce mortality32,000 deaths in Japan each year and the mortality was increasing Current products cannot meet Japanese hepatologists’ expectationRecent liver exams had several redundanciesT: “Fusion” capabilities which merged Ultrasound images with CT and MR images for a more complete viewTable2: SWOT Analysis for TTarget: mid tier general imaging customers —liverTarget market: Japan, 400 millionS:W:Significant uncertainty in meeting budgetUncertainty in meeting criteria of a 15% improvement in quality Without further innovation, clinical evidence of the impact of E4D alone would be difficult to obtainO:The market is growing into a billion-dollar segmentExpected at least 1000 probes would be sold in  the first yearT:Compete with Philips’ Live 3D TEE productTable3: SWOT Analysis for US:No damage to the skinHigh marginTechnology required was relatively simpleW:Insurance does not coveredLack of a clinically relevant benefitO:No manufacturers had received US FDA approvalCurrently close to 1 million procedures per year in US; 2 million worldwideOver 1 billion potential market High growth rate of revenue: 6.4% from 2008 to 2013 for invasive procedures & 17.9% for non-invasive proceduresT:Has existing competitorsTable4: SWOT Analysis for US:Not a huge investmentLow priceW:Significant uncertainty to reach sales targetO:Fourth most-populous country with around 230 millionA huge disparity between the 2000 OB/GYN A rate of 18 new births for every 1000 people in 2010Mid wives are more easily to access (26 mid-wives for every 100000 people)T:A significant hurdle in making the product economics work1 or 2 out of every 4 midwives would be able to affordLow cost option ($45/case)