Genicon a Surgical Strike Into Emerging Markets

4140 Words17 Pages
International Marketing Dr. Shahira El Alfy Mid Term – Take Home Exam GENICON: A Surgical Strike Into Emerging Markets By Mostafa ElSheshtawy Eslsca – Spring 2013 Intake 39 Questions 1. Did Gary Haberland make the best decision to simply shift all the company’s efforts to international markets, or should he have first tried harder to expand sales in the United States? Explain and justify Yes going for international markets was the right decision for GENICON as it was taken after trying for one year to sell its products in the U.S. market with no significant success taking into consideration that it is a start-up company with limited human and capital resources. I think it was the right decision for the following reasons:  Lack of good and favorable distribution channels in the USA (Competition) It was extremely difficult to gain market share in the United States as since the 1990s distribution of minimally invasive surgery (MIS) devises had been controlled by companies receiving contracts through group purchasing organizations (GPOs). The GPOs financial structure had long favored purchasing products from only the large companies this factor presented nearly insurmountable barriers to many start-up MIS device companies like GENICON. Survival for GENICON depended on its ability to sell products abroad.  Big market for GENICON outside the United States (opportunity) Although MIS device market in the United States had long been the largest in the world, international markets were expected to grow at a much faster rate than the five percent growth forecasted for the U.S. market for the foreseeable future. The global market for MIS devises and instruments was worth an estimated $12 Billion in 2005 and was expected to reach $ 18.5 Billion by 2011, an average annual growth rate (AAGR) of 7.5 percent between 2006 and 2011. The United States accounted for
Open Document