Mini Case presentation of GE healthcare product called Mac 400 for Global Business Strategy class. Objective of case presentation was to understand "Local-to-global" global perspective. GE's India-based R&D efforts are creating products that are being sold globally. That being said, 2,000 of the 7,500 Mac 400's that GE Healthcare has sold have been bought by Indian customers; the rest have been bought by customers in other country markets.

1. GE Healthcare in India:
Locally Driven Innovation
Group #3 Mini Case Study - Presentation By:
Chandra Vijay, Gaurav Vasani, Jeff Dagg & Varun Thakur

2. Table of Contents
GE in India01
GE Healthcare in India02
GE’s Mac 40003
Case Questions04
Questions05

3. GE in India
Jobs
GE employs over 13,000 people in
India at various branches to create
jobs in the economy.
Exports
GE exports over $1 billion in products
and services from India.
R&D
John F Welch Technology Center
(Bangalore) collaborates with GE to
conduct R&D worldwide.
03

4. Local Investments
GE Healthcare, has invested in local joint
ventures and manufacturing plants since the
beginning of the 1990s, to reduce costs and
increase local sales.
GE’s Mac 400
GE’s Mac 400 was conceptualized, designed,
and sourced, as well as manufactured, in India,
all following local customer requirements
considering needs of local people.
GE Healthcare in India
04

5. GE’s Mac 400
Video
GE Health Commercial - ECG MAC 400
A humorous approach to promoting health
care in India. Filmed and focused on India
rural areas.
05
Mac 400
Ultra-portable electrocardiogram
Made in India
Sold well locally, because it costs
one-third of the price of an
equivalent imported product

6. GE’s Mac 400
Mac 400
Light-weight & battery-operated
Easily serviceable making this
ideal for India's rural area
06
Mac 400
2000 of 7500 units have been
bought by Indian customers
Rest have been exported in other
countries

7. Case Questions
In what ways is GE's Mac 400 ECG the
result of 'local-for-local' innovation?
 ‘local-for-local’:
 new or customized products and services
 entirely developed by locals subsidiaries
 that suite the specific characteristics of the
local market or country condition
 GE's Mac 400 was conceptualized, designed, and
sourced, as well as manufactured, in India, all
following local customer requirements
07

8. Case Questions
Why would GE establish R&D facilities in
India?
 GE's India-based R&D efforts are creating products
that are being sold globally
 Drivers that underpin the focus of healthcare
product innovation in India, including accessibility,
quality, and low cost, apply to other developing and
emerging markets
 New products designed and developed in India are
likely to sell well in these markets
 Other advantages of R&D facilities in India:
 IT growth rate
 availability of resource and labor
08

9. Case Questions
What indications are there that the Mac
400 ECG has become an example of
'local-for-global' innovation?
 ‘local-for-global’:
 locally developed product or service turns out
to fit other markets
 beyond the location of the subsidiary
responsible for creating it
 2,000 of the 7,500 Mac 400's that GE Healthcare
has sold have been bought by Indian customers
 The rest have been exported in other country
markets
09

10. Case Questions
How can multinational firms destroy their
own profits by engaging in low-cost or
'bottom-of-the-pyramid' innovation?
 Low cost innovation products manufactured in
developing and emerging markets will lead to
cannibalization
 The product will compete with products in other
markets which has higher profit margin due to
different brand positioning
 In CASE: Mac 400 have the potential to
significantly undercut more expensive (and
profitable) products sold in more advanced markets
like Europe and the United States
10

11. Thank You! Questions?
Case Taken From:
International Business, Sixth Edition by Collinson, Simon & Rugman, Alan M.