Genicon Essay

2321 Words10 Pages
Case Analysis 2 Genicon Situation Genicon is a small manufacturer and distributer of medical instruments for laparoscopic surgeries operating in 32 countries. President and founder Gary Haberland is pondering the next steps to grow and diversify his successful, internationally-operated company. The critical question is which market to enter next. Haberland is considering the fast growing emerging markets in Russia, India, Brazil and/ or China. However, due to limited financial and human resources as well as the risk associated, only one market entry at a time is feasible. Genicon’s Strategy As 80% of its business is derived outside the United States, Genicon’s strategy is clearly based on international expansion and growth in order to sell the premium-priced disposables. In this context and in regard to the limited human and capital resources it is critical to enter the right market. Market entry mistakes, high-up front costs, or long start-up times will jeopardize the continuity of the small company. Although, the products are categorized as premium-priced and high quality and economies of scale, due to the small size of the company, cannot be realized, production and distribution costs are relatively low. This results in gross profit margins of up to 69% in Greece, 50.35% in Spain, 49.24% in Puetro Rico, and an average gross profit margin of 37.6%. So far, this strategy has worked out well for the company. Genicon is operating in 32 international markets, from highly developed to emerging markets, all around the world. Neither different market environments, disparities of economical development, political and legal situations, dissimilar demand and buying behaviors, nor cultural distinctions in the respective countries tend to hinder the success. Furthermore, there seems to be no pattern under which market conditions and in which environments

More about Genicon Essay

Open Document