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General Electric medical systems, 2002

General Electric medical systems, 2002

Q 1. What is the underlying logic behind the global product idea? What are the costs and the benefits that are expected?

Answer- Global Electric Medical Systems (GEMS) had built a global presence on the backs of the Global Product Company (GPC) concept .This philosophy concentrated on manufacturing and then carry out activities anywhere in the world, where it could be carried out to GE’s Standards and cost effectively without compromising on quality.
Medical equipment are globally standardized product which don’t require to be tweaked or adapted to local market needs.

GEMS in terms of Adaptation, had invested heavily in country-based sales and marketing by providing equipment and services such has training and consulting advisory tailored to country specific needs.

GEMS had overtaken its competitors through Arbitrage; The GPC led to building of Centers of Excellence (COE). From these COEs 60-96% of the products were shipped to other locations. COE were strategically located at developing economies which shipped its developed products to different countries (First world countries) which saved costs and time, thus maintaining its market leadership and addressing the demands for affordable equipment’s globally.

Medical Equipment industry has proven that Aggregation has one of the key factors for this type of industry over the past few years. GEMS had also addressed aggregation related challenge through GPC concept and managed to remain profitable and market leaders.
1. Economies of Scale and Scope: GPC had been applicable in the R&D part of the operations. The developing economies (Low cost country) had a pool of talented but underutilized personnel. The GPC concept was to enable GEMS to hire such talent for its own benefit as they would be available at a

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