advanced biomedical devices (international business)
TRANSCRIPT
INTERNATIONAL BUSINESSPROF. RAMON SANTACANA
ROGER VALENZUELAJEREL SAMUEL
Advanced Biomedical Devices
• Introduction
• Why United States?
• 4P’s
• Internationalization
• Entry Strategy
• Conclusion
Content
Introduction
• Founded by Dr. Richard Bentley, a British surgeon, who left surgical practice and developed a medical device that heplsthe wound-healing process (Speedheal) and other such ground breaking technology.
• Based in The United States and we are now looking to expand into Canada, Europe, Latin America and India.
• Demand is high, distributed through sales personnel that sold to hospital and clinics through out The United States.
• Growth approached 20% in some years.
• Staff grew to 85 people
• The firm’s success stimulated entry of competitors offering similar products
• Miniaturization still remains ABD’s competitive advantage
• Our projections of ABD’s future remain positive
Why United States?
• Purchasing Power
• Size of the populations
• Safety assurance from government interventions
• Hospitals in the United States are more open to trying and investing in such new technologies
• Take advantage of the good international relations the United States enjoys with other major countries
4P’s
Product
• “Speed Heal”
• Helps oxygenate the blood which in turn helps the wound to heal faster
Price
• Positioned as a premium product and hence carries a high price.
Country Price Discount
>100 units
Discount
100 units – 200
units
Discount
<200
United States
and
Canada
$5 (150 NTD) 0% 5% 7.5%
Europe $6 (180 NTD) 0% 7.5% 10%
Latin
America
and India
$4 (120 NTD) 0% 10% 15%
Promotion
• No television commercials
• No radio commercials
• We advertise in newspapers and medical magazines as it would cheaper and helps reach out to our target customers
Place
• Warehousing under a controlled climate
• Distributors
Internationalization
• In order to increase the growth of the firm
• Introduce new product in foreign markets
• Expand our firm’s customer base, sales and revenue
• In order to diversify
Motives to Internationalize
Organizational readiness• We will measure organizational readiness using CORE
• CORE – COmpany Readiness to Export.
• Step 1 : SWOT AnalysisTake actions towards the weakness and address the
threats.
Strength
• 20% growth in our home country and unsolicited orders from abroad
• Comprehensive Strategic Plan
• Critical Self Assessment
• Miniaturization of product provides a high competitive advantage
Weakness
• Need to train sales representatives in foreign market as they need to deal with doctors, nurses and other medical professional
Opportunities
• Fast growing markets promise superior profitability
• No other firm offers the same product so potentially no or lowcompetition
• Reduce overall risks by diversifying sales to other regions
Threats
• Need to train sales representatives in foreign market as they need to deal with doctors, nurses and other medical professional
• After Sale services
• Warehousing in climate controlled facilities
• High growth rate
• High price
Dealing with the threats
• We are willing to make an investment in training
• If our product is destroyed during distribution or malfunctions, we will choose to replace it as part of our after sale service
• Warehousing has become increasingly common
• Step 2 : Modifying the productDevelop international marketing plan for each region, each with it’s respective budgetsVarious ways to meet worldwide standards and regulation, namely CE mark and ISO standard
• Step 3 : We had screened many countries and have decided to enter Canada, Western Europe, Latin America and India
Step 4 : As mentioned earlier no other firm offered the same
product.
Due to the miniaturization of their product, it was
more easily distributed. Therefore we enjoy a high
competitive advantage.
• Step 5 : We screened the following three types of potential foreign business partners
• Joint Venture
• Distributors
• Franchise
• We chose to deal with the distributors only
• Step 6 : Ensure profitability within 2 years of our launchEstimate international sales to reach 35% of net sales
• In Canada and Europe we have chosen to set up an office and partner up with a distributor
• In Latin America and India, we have chosen to enter through the UN as part of our firm’s social responsibility
Entry Strategy
Conclusion
In conclusion we may say the decision to internationalize is not an easy one. Though, with respect to our company, one may say that ABD has achieved export readiness and can internationalize. Our product and management meet the norms required not only to survive but also to do well in the international market. We also enjoy the funds to back up our plans to internationalize and are willing to expand. These funds are generated from the profits made due to the high level of success achieved in our home country