STRATEGIC ANALYSIS OF GEMS
INTRODUCTION
General Electric Medical Systems (GEMS) is the division of General Electric dealing in healthcare equipment and services and GE has a largest market capitalization of $4 billion. GEMS was established back in the 1940s when GE purchased an x-ray Business in Chicago. Since then, GEMS has been growing tremendously, not only offering highly innovative products and services, bust also has earned the status of global leader in industry through innovative managerial practice. Acquisitions during the Immelt’s time were focused on enlarging the size of GEMS. One of the acquisitions in 2000 formed a basis of GEMS IT. Immelt’s another initiative GPC helped GEMS earn cost leadership. GEMS is structured around three groups:
The Poles; America, Europe, Asia
The Businesses; MR, CT etc, eight business heads reporting to CEO
The Functions; Sales, Marketing, Service
In 2000, Hogan was appointed as CEO of GEMS as Immelt was named to replace Jack Welch in the top position of parent company GE.
Strategic analysis using the PEST model:
Political/Legal factors:
The application of GPC is being influenced by government regulations (fiscal & monetary policies) in various countries resulting in extra cost e.g. taxes on inventory transfer. Political/legal factors having impact are,
• Governments regulations in develop countries to slow the introduction of new advance equipment
• No restrictions on diagnostic testing in china
• Reduction in Reimbursement rates.
• Legal reforms in India
Economic Factors:
The aging of population in developed nations is resulting in decrease in health care spending because of decrease in working per capita. GEMS response is to ...