Marketing Case

Receive a favorable response in the media when launch healthymagination

Healthymagination can brand GE as a more caring conglomerate

Reason:

1. However, the market was growing. So GE need to make some adjustment to compete in this market.

Strength

1. GE has more than 40% market share of MRI and nearly 50% market share of CT in US.
2. Compared with its competitors, GE had significant brand equity with customers across the globe, due to a long record of creating superior products as well as extensive sales and service support-----according to different customers , they used different sales strategy
3. GE had a National Account sales team with a high level of technical and commercial expertise to serve the prestigious hospitals( a hundred in US)

Weakness

1. GE consolidated net earnings reduced 27% from 2008 to 2010. Healthcare is in the same decreasing trend. The operating profit of GE healthcare decreased 23% from 2006 to 2009
2. Exhibit 4 has disadvantage of main imaging technologies

Opportunity

1. The Healthcare market is huge and growing. Healthcare was a $2.5 trillion sector of the US economy, and $5 trillion of worldwide. It constituted about 16% of US GDP and had been rising significantly faster than GDP: total spending for medicare and Medicaid has grown 300% from 1.7% of  US GDP in 1975 to 5.7% of  US GDP in 2008.
2. Aging of the population
3. Total spending for healthcare would be 31% of GDP by 2035 and would increase to 46% by 2080.
4. Affordable care act would bring 32 million uninsured people into the healthcare system
5. For medical devices used in clinical settings constituted a market greater than $100 billion in the US (2008), which in turn was estimated to be 42% of the global market
6. Developed countries provided a large and stable market while developing countries provided significantly higher growth opportunities.
7. The projections in MRI and Radiography grew fast, exhibit 5
8. Exhibit 6, GE had high marker share in ultrasound market; 市场分布情况，北美占主要，ge在北美优势

Threat

1. Affordable care act might make hospital and insurance providers pay more attention on cost
2. In US Cardiac X-Ray market, GE only accounted for about 20% market share while Philips had about 50% and Siemens had about 25% market share.
3. Hospitals centralized purchasing and procurement, several stakeholders, pay more attention to how insurance companies, governments and other payers perceived the value provided by the medical equipment.---- a reason GE need to implement new criteria, because hospitals evaluate new products from the perspective of customers
4. Spending and enthusiasm for new products had declined as reimbursement models changed, with several major hospitals delaying purchases
5. The time between new product introductions and market acceptance has been lengthening over the years from 3-5 years to a decade in some cases.
6. The test and treatments that people take will need to meet medical necessity. From an imaging perspective, hospital will have more patients to image, but each patient will have less imaging----because of considering reimbursement;
7. Exhibit 6, GE and Philips had almost same marker share in ultrasound market

Table1: SWOT Analysis for HepEcho

Target: mid tier general imaging customers ---liver

Target market: Japan, 400 million

Table2: SWOT Analysis for T

Target: mid tier general imaging customers ---liver

Target market: Japan, 400 million

Table3: SWOT Analysis for U

Table4: SWOT Analysis for U