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After The BRICS PDF
After The BRICS PDF
After The BRICS PDF
2. Problem Statement
Knowing which market GENICON should enter into is difficult, for it must gather a great
deal of information regarding taxes and tariffs, government regulations, matters related
to corruption, exchange rates risk, and other barriers it might encounter in each country.
However, it is key for GENICON to choose the right country if it wants to continue
growing.
3. Analysis
3.1 Should GENICON expand to new and emerging markets?
Should GENICON even consider expanding to new emerging markets? Or should it
focus its efforts on increasing market share in its existing markets? The most probable
answer is that it should choose to expand. There are several reasons supporting such
answer:
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Alexis Solis Cancino Global Strategy 000130502
competitors haven’t explored yet could result in astonishing growth for the
company should it turn out to be a right choice.
There are some key aspects that a country should have in order to be a potential great
market. Some of them might be:
China and India provide very good guidelines in terms of choice, since both countries
resulted in amazing results for the company. GENICON should extract the main features
that aided such results from each country and try to look for that in other potential
markets.
Additionally, GENICON should search for what it is not looking for in a country (adverse
conditions). Some of these might include:
Finally, a key aspect to choosing the right country is the method of entry. Should it enter
into the public sector? Or is it easier to enter via the private sector?
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Alexis Solis Cancino Global Strategy 000130502
Source: Bloomberg
4. Recommendations
In order to make a good decision, GENICON should explore quantifiable measures (e.g.
government’s expenditures on healthcare as % of the GDP) and qualitative measures
(such as corruption levels). GENICON’s main concerns should be its potential growth in
such country, the potential barriers of entry, the potential competitors and finally, its
entering strategy. GENICO has demonstrated a great ability to expand since it showed
exceptional adaptation skills as seen during its European Union and BRICs expansions.
To continue flourishing it must apply these abilities combined with a healthy
environment for healthcare products companies.
The possibility of a MIST expansion after the previously successful BRIC expansion is an
attractive solution. Furthermore, an expansion to such countries could present similar
conditions to the ones BRIC countries had, and GENICON’s experience could make it a
easier process.