GE Ultrasound in China
...nd Echocardiography in 1998, Kretztechnik Ultrasound - a leading manufacturer of 3D ultrasound systems in 20014 and so on. And that Acuson was acquired by Siemens Medical Systems in 2000, ATL and Agilent Healthcare Solutions Group (formerly Hewlett-Packard) was acquired by Philips in 1998 and 2001 respectively5. Above-mentioned these created the condition for redividing the market share and rank, and GE Ultrasound fully holds this opportunity. Another aspect of well worth mentioning is sales channel. Depending on GE Healthcare original sales network in China, GE Ultrasound made quickly strong sales supporting team and completive sales channel through all of China. We put forward a policy of multi-dealer in some particular territories, and created a kind of sales mode that calls united-brand sales organization. According to a recent industry report from Klein Biomedical Consultants, Inc., a globally-recognized source of ultrasound market and trends analysis, GE Healthcare is the world¨s leading provider of ultrasound technology. This marks GE¨s ninth consecutive year of double-digit growth in ultrasound, and the second consecutive year that GE has held the industry¨s top ranking6. All every things seem to be advantageous to GE Ultrasound¨s development in China, but the actuality is not such. There are many nonmarket elements it will impact our performance. The first is the change of purchase process. In initial stage of 1990¨s, the intent customer could negotiate directly and independently with equipment supplier, and then buy appropriate product from the supplier. As a selling firm, we only communicate with decision maker of the potential customer and persuade them to accept our product. In middle of 1990¨s, except the end-user of the equipment, its supervisor organization also involved frequently into these transactions, so we had to evaluate and deal with these relations at the same time. By 2000, Ministry of Commerce of the People¨s Republic of China enacted the act about inviting public bidding in the equipments purchase7. Thus there are more persons related with this project, these persons will include the leadership and the user in the hospital, the expert of the industry, and the staff of the tender center etc., so we must work in more scopes. The second is the system reform on health industry. More and more public hospitals were transformed to joint-stock or private hospitals. The change of system will lead to the change of decision model, and then will impact on our business operation. The third is corruption and anticorruption in China. On one hand, the corruption is widespread and existent, the Discipline Investigation Council of Central Government has investigated and adjudicated more than 2,000 cases about official corruption and bribery per year from 1997 to 2003, and there were approximately 70% cases relating to economic delict8. On another hand, in recent years, Central Government initiate anticorruption plan. In 2004, Government more focuses on 10 realms of the greatest concern of common peoples, including on health industry to eliminate corruption. It has influenced on our business because most customers delayed their plan and project to avoid involving into judicatory investigation. The fourth is macroscopic economic policy of the nation. Since the middle of this year, Government start to execute the policy of financial stringency, it leads the investment to put slowly, a mass of purchase plan were delayed and cancelled. The final is the issue on whether we can sell our product to China Family Planning System. China Family Planning is a basic national policy of China, it mainly focused on helping and monitoring pregnant women to terminate those illegimate gestations in past. As an American firm, GE forbids us to sell the equipments of ultrasound to this system. But now the work point of most organizations in China Family Planning System has transferred to provide the health care of procreation for the women9. This is the new opportunity to expand our business. According to above review and analysis, we should clearly take cognizance of the importance of nonmarket environment to successful business operation. As I mentioned above if GE Ultrasound want to obtain the continuous success in China, we must deal seriously with those issue of the social, political, and legal environment in which we operate, as the similar as those issue of the market. Hereby, we should take so...