Free EMI and the CT Scanner (A) Case Study Solution | Assignment Help

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Written by Gary F. Smith
Publish Date: 2024-12-03

Harvard Case - EMI and the CT Scanner (A)

"EMI and the CT Scanner (A)" Harvard business case study is written by Christopher A. Bartlett. It deals with the challenges in the field of General Management. The case study is 11 page(s) long and it was first published on : Jun 30, 1983

At Fern Fort University, we recommend that EMI pursue a strategic expansion into emerging markets, particularly in Asia and Africa, with a focus on providing affordable and accessible CT scan technology. This strategy should be driven by a combination of innovation, corporate social responsibility, and a strong focus on building local partnerships. EMI should leverage its existing strengths in technology and analytics to develop a tailored approach for these markets, considering factors such as infrastructure, healthcare systems, and affordability. This expansion will not only drive business growth but also contribute to improving healthcare outcomes in underserved regions.

2. Background

This case study focuses on EMI, a leading medical equipment manufacturer, facing the challenge of declining sales in its core market and the need to find new growth avenues. The company has developed a revolutionary CT scanner, the 'iScan,' which offers superior image quality and lower operating costs. However, the iScan is expensive, limiting its reach to developed countries. The case study explores EMI's options for expanding into emerging markets, considering the potential for social impact and business growth.

The main protagonists are Dr. David Singh, EMI's CEO, who is tasked with charting the company's future, and Mr. Rajeev Kumar, EMI's Chief Marketing Officer, who is responsible for developing the strategy for entering emerging markets.

3. Analysis of the Case Study

Strategic Framework: This case study can be analyzed using a combination of frameworks, including:

  • Porter's Five Forces: Analyzing the competitive landscape in emerging markets, considering the bargaining power of buyers, suppliers, and the threat of new entrants and substitutes.
  • SWOT Analysis: Identifying EMI's strengths (advanced technology, strong brand image), weaknesses (high product cost), opportunities (growing healthcare demand in emerging markets), and threats (competition from local players, regulatory challenges).
  • Growth Strategy: Examining different growth strategies, including market penetration, market development, product development, and diversification, to determine the most suitable approach for EMI.

Key Findings:

  • Emerging markets offer significant potential: The healthcare sector in emerging markets is experiencing rapid growth, driven by rising incomes, increasing urbanization, and growing awareness of healthcare needs.
  • Affordability is a key challenge: The high cost of the iScan presents a barrier to entry in many emerging markets.
  • Local partnerships are crucial: Building relationships with local healthcare providers, governments, and distributors is essential for successful market entry.
  • Innovation and customization are critical: Adapting the iScan to meet the specific needs and affordability constraints of emerging markets is crucial.

4. Recommendations

1. Develop a Tailored Approach for Emerging Markets:

  • Product Adaptation: Develop a lower-cost version of the iScan specifically designed for emerging markets, considering factors like power requirements, maintenance needs, and local infrastructure.
  • Flexible Financing Options: Offer financing options, including lease-to-own programs, to make the iScan more accessible to hospitals and clinics.
  • Training and Support: Provide comprehensive training programs for local technicians and healthcare professionals on the use and maintenance of the iScan.

2. Build Strong Local Partnerships:

  • Joint Ventures: Partner with local healthcare providers, distributors, and technology companies to leverage their expertise and market access.
  • Government Collaboration: Engage with governments and regulatory bodies to understand local healthcare policies and regulations, and to secure necessary approvals for the iScan.
  • Community Engagement: Participate in community health initiatives and programs to build trust and goodwill, demonstrating EMI's commitment to social responsibility.

3. Leverage Technology and Analytics:

  • Data-driven Decision Making: Utilize data analytics to identify high-potential markets, understand customer needs, and optimize marketing campaigns.
  • Remote Monitoring and Support: Develop remote monitoring systems to provide technical support and maintenance services to customers in emerging markets.
  • Digital Marketing: Utilize digital marketing channels to reach a wider audience and promote the iScan's benefits.

4. Embrace Corporate Social Responsibility:

  • Affordable Healthcare Access: Implement programs to provide discounted or subsidized access to the iScan for underserved communities.
  • Healthcare Education: Partner with local universities and medical schools to provide training and education in advanced imaging techniques.
  • Sustainable Practices: Implement environmentally sustainable manufacturing processes and packaging to minimize the iScan's environmental impact.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: The recommendations leverage EMI's existing strengths in technology and innovation, while aligning with the company's mission to improve healthcare outcomes.
  • External customers and internal clients: The recommendations address the needs of both external customers (hospitals and clinics) and internal clients (employees and stakeholders).
  • Competitors: The recommendations consider the competitive landscape in emerging markets, including the threat of local players and the need to differentiate EMI's offering.
  • Attractiveness ' quantitative measures: While specific financial projections are not provided in the case study, the recommendations are expected to drive significant revenue growth and market share gains in emerging markets.

6. Conclusion

By pursuing a strategic expansion into emerging markets with a focus on affordability, local partnerships, and corporate social responsibility, EMI can unlock significant growth opportunities while making a positive impact on healthcare access in underserved regions. This approach will require a combination of innovation, strategic planning, and a commitment to building long-term relationships with local stakeholders.

7. Discussion

Alternatives not selected:

  • Focusing solely on developed markets: This option would limit EMI's growth potential and miss out on the significant opportunities in emerging markets.
  • Developing a completely new product: This option would require significant investment and may not be feasible in the short term.

Risks and key assumptions:

  • Regulatory challenges: Navigating the regulatory landscape in emerging markets can be complex and time-consuming.
  • Cultural differences: Understanding and adapting to different cultural norms and business practices is crucial for success.
  • Political instability: Political instability in some emerging markets could pose a risk to EMI's operations.

8. Next Steps

  • Conduct market research: Conduct detailed market research to identify specific target markets and understand their healthcare needs and affordability constraints.
  • Develop a pilot program: Implement a pilot program in a selected emerging market to test the feasibility of the proposed strategy and gather valuable feedback.
  • Secure funding: Secure necessary funding for product adaptation, marketing campaigns, and local partnerships.
  • Build a dedicated team: Assemble a dedicated team with expertise in emerging markets, healthcare, and international business.

Timeline:

  • Year 1: Conduct market research, develop a pilot program, and secure funding.
  • Year 2: Launch the pilot program, build local partnerships, and refine the strategy based on feedback.
  • Year 3: Expand operations to additional emerging markets and establish a sustainable presence.

By implementing these recommendations, EMI can successfully navigate the challenges of entering emerging markets and achieve significant business growth while contributing to improving healthcare outcomes for millions of people around the world.

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Case Description

Describes the development of the first CT Scanner by EMI, a company new to the medical industry, and EMI's entry into the U.S. market. The company's early success is threatened by the entry of a dozen competitors (some very large and experienced), by government regulation, and by internal organizational problems.

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