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Gems Case

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1. Analyze overall challenges of GEMS in 2002
a. Technological change:
+ Genomics and healthcare information technology such as Digital Imaging, Electronic Patient Records and Disease Management Systems make personalized medicine and personalized diagnostics possible. Moreover, healthcare practice move from cure to prevention. These changes require expertise in biomedical sciences rather than in engineering and physics; and also investment, collaboration with pharmaceutical companies which facilitate the creation of imaging equipment necessity to alter GEMS business model which is away from engineering heritage toward bio-chemistry and develop drug based on genetic code for specific individual, or small group rather than entire population.
b. Demographic change:
+ Population were aging in advanced nation, implied fewer working-age people to pay for more intense care while the emerging middle-classes if Asia, Eastern Europe and Latin America were increasingly aware of, and needed, better healthcare. This requires the shift in distribution of healthcare equipment in these countries (more for Asia, Eastern and Latin America) and the change in market segment of healthcare equipment.
+ Global information flows made healthcare disparities between developed and developing nations more stark and unacceptable. Thus, concentrating more on developing world needs great effort investment and customization.
c. Fierce competition:
+ Siemens is leading in healthcare IT, which is a great advantage for them to thrive in technological change era. All competitors move on healthcare IT segment, potentially affecting the market share of GEMS.
2. Strengths and potential weaknesses of the Global Product Company (GPC) approach introduced by Immelt.
Company strategies are transnational (multifocal) which aimed at both global integration and customization; and cost leadership

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