Gary Haberland of GENICON is considering expanding into emerging markets to pursue higher growth opportunities. The document analyzes several potential markets including India, China, Brazil, and Russia. It finds that India has the fastest growing population and second largest medical devices market. Medical tourism in India is also expected to increase. The forecasted annual growth rate for India's medical devices market is 11.3%. Based on both quantitative and qualitative factors, the document recommends India as the best market for GENICON to enter.

1. GENICON:
A SURGICAL STRIKE INTO
EMERGING MARKETS
Anish Singh
Nishant
Sharma
Nagesh
Murkute
Saloni
Ankita
Thakurdesai
Mohd Saif

2. DECISION OF GARY HABERLAND
• Gary Haberland made a good decision as mentioned in the case GENICON was a
start-up company, and to grow and diversify, new markets should be explored and
should be developed.
• International markets was expected to grow at much faster rate than 5% then USA.
• Also, according to GENICON business plan, growth rate was estimated much higher,
and the next reason for barrier to gain market share in USA was that the distribution
was controlled by GPO which gave contracts only to big companies.
• And also, we suggest GENICON to keep a link with the USA market as, this will help
GENICON to develop themselves when they become an established company.

3. INDIA
• Fastest growing population and second largest medical devices market
• Medical tourism is expected to increase to 3.9 Billion.
• Opportunity as India’s imports increased at almost 23% for medical devices.
• Forecasted 11.3% YOY
• Growth for India’s 2.35 Billion device market.

4. CHINA
• China’s 12.6 Billion medical devices sector was expected to post double digit
growth
• By 2012 the value of medical device industry was expected to reach 20.6 Billion
dollar that is 8.2 % share of overall healthcare market.

5. BRAZIL
• GDP growth rate expected to average 6.6% annually through 2013.
• Law passed in 2008 obligating the country to increase healthcare spending
to minimum of 10% of GDP.
• Brazil’s medical device market value at 3 Billion Dollar was the largest in
Latin America.
• Brazil heavily dependent on medical equipment imports that is 1.9 Billion
deficits.
• Health budget increased by 21% in 2006.

6. RUSSIA
• Total private and public health care spending would reach 97.4 Billion dollar by
2013 equivalent to 3.8 % of GDP.
• Russia dollar 1.98 Billion medical device sector displayed long term growth
potential.
• Large number of hospitals (that is 10,000) and healthcare expenditure at 39.4
Billion Dollar.

7. MARKET POTENTIAL AND MARKET DEMAND
• Market potential is the entire size of the
market for a product at a specific time. It
represents the upper limits of the market
for a product. Market potential is usually
measured either by sales value or sales
volume.
• E.g Brazil in 2006 is 2.1 BN and the
forecasting in 2013 is 5.7 BN so the market
potential will increase by 171%
• Demand is the quantity of a good or service
that consumers and businesses are willing
and able to buy at a given price in each time
period. Market demand is the sum of the
individual demand for a product from
buyers in the market.
• E.g India is the fastest growing economic
country with having wealthier society, tax
reforms. India also has a growing
infrastructure. In 2003 the medical device
market was 66.82 INR Bn and the forecasted
was 182.61 INR Bn in 2013 (173%)

8. WE CHOOSE INDIA
• Fastest growing population and second largest medical devices market
• Medical tourism is expected to increase to 3.9 Billion.
• Opportunity as India’s imports increased at almost 23% for medical devices.
• Forecasted 11.3% YOY
• Growth for India’s 2.35 Billion device market.

9. BASED ON SOLELY QUALITATIVELY BASED MARKET
ANALYSIS WE CHOOSE BRAZIL
• Ease of doing business
• Low Competition
• Easy and quick product registration
• Large number of importers and distributions
• Brazil government does have low import tariffs, along with no import duties, or
value-added taxes on up to 42 medical devices.

10. USING BOTH QUANTITATIVE AND QUALITATIVE VARIABLES,
WHICH COUNTRY SHOULD GARY HABERLAND CHOOSE?
INDIA
• Large population growth and large market for medical devices.
• Increase in awareness for medical issues by Indian government.
• Adopting and Emerging of various new and innovative treatment method in
India.
• Also, continuous increase in imports of medical devices by Indian market.
• Fastest growing economy, besides increase in lifestyle, high disposable income.

11. BRAZIL
• High demand of innovative and disposable surgical instruments in Brazil.
• Less competitors in both imports and exports terms.
• Process for imports is cheap and faster.
• Highest healthcare spending per GDP were generally positive with nominal
growth.
• Ease of doing business.
• Developing economy, so greater chances to occupy market.
USING BOTH QUANTITATIVE AND QUALITATIVE
VARIABLES, WHICH COUNTRY SHOULD GARY
HABERLAND CHOOSE?

12. COMPLICATIONS EMERGING FROM CONDUCTING A
MARKET ANALYSIS IN A FOREIGN COUNTRY
• Government Law and Regulations
• Language Barrier
• Import Export Costs
• Distribution channel
• Understanding the PESTEL factors
• Perceptions on medical treatment
• Education- Medical Practices

13. THANK YOU