advanced biomedical devices (international business)

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