October 29, 2013
Emerging Economies and Globalization Multinational corporations (MNC’s) are consistently looking for new unsaturated markets to tap into in optimisms of expanding their business and capitalizing on future industry trends. General Electric Healthcare (GEH) is one of these MNC’s trying to capitalize on the incessantly rising healthcare industry. In 1878, Thomas Edison founded General Electric (GE), which is the corporation that established GEH in 2004. GE was the first company to invent the household light bulb and has successfully ventured forwarded in the electric industry through its innovations and manufacturing of …show more content…
The structure and strategy of companies and their rivalries (Laurentiu, n.d.). This relies heavily on the form of ownership, the goals and strategies of the company, and the motivation of everyone involved including the employees. The government and government policies plays a significant role (Laurentiu, n.d.).
The National Competitive Advantage can help analyze why GEH has currently moved its pharmaceutical development to India. The pharmaceutical companies in India are the largest generic medicine providers in the world (Kumar, 2013). This is due to India’s government refusing to recognize certain pharmaceutical patents, which enables them to produce generic drugs at low costs which other countries are unable to compete with (Kumar, 2013).
A potential pitfall for GEH moving their pharmaceutical development to India is the dependence on another country. Although India currently produces generic drugs because their government refuses to recognize pharmaceutical patents does not mean that they can always refuse to recognize those patents. GEH needs to have a back-up plan in place if the India government decides to acknowledge the patents in the future and expenses increase. GEH can avoid potential pitfalls by: