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Bella Health Care

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Bella Health Care

This case study is on Bella Healthcare (Leonard & Yong, 2012), which was originally set up as a manufacturing facility in St. Louis, Missouri, for developing Holter monitors. It later expanded to various cardiology equipment including EKGs. The analysis below focuses on whether Bella India is ready to lead a new product development project for the local market.

Bella India moved from low value-added activities to high-value capabilities like product development: Bella Healthcare started another manufacturing location in Bangalore, India. Its decision was based on the following factors: supporting infrastructure, industrial center, and a trained English-speaking labor force. Bella’s products are commercially oriented and usually improvised versions of existing products. The Bangalore facility was focused on manufacturing and production. The products at this facility were less expensive and of superior quality. Bella India was only given production and manufacturing responsibilities.

Because of its success, in 2003 Bella Healthcare India formed a joint product development venture with its parent company and established its first R&D team with the help of Jeremy Manning. Most members of the R&D team were young graduates with little experience in medical technology product development. The team was sent to the United States for training. The India team excelled in technical knowledge but had to hone their innovative and creative skills in a mixed cultural environment. Manning also had to localize his management style in response to the India team’s propensity toward uncertainty avoidance and risk aversion. The team relied heavily on Manning.

With the success of the Fiit project, collaboration between the St. Louis and Bangalore teams increased significantly and reflected joint efforts in the initial product design. In 2005, Project Baton was

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