International Business Strategy

“European Market”

Group 3
 Outline
Company Overview
oSWOT Analysis for WEGO
Target Country Selection Process
oHealth Policy of European
Union
oCountry Comparison
Mode of Entry in European Market
Macro Environment Analysis
Competitive Advantage
oCompetitive Advantage
oCompetitor
Marketing Strategy
Conclusion
 SWOT Analysis of WEGO
Strength

Broad product portfolio addressing Weakness

Rising manufacture cost.
diverse customer needs. 
Most of the low-end medical

The products are regulated by WHO. products own less profits margin.

The products user friendly. 
The products easily replaced by

Growing capacity. competitors.

Opportunity Threat

Expansion of the EU market.

Joint-venture local enterprises. 
The competitors actively occupy

The chances of mergers and market share.
acquisitions. 
Consolidations to intensify

Health awareness and rising competition.
disposable income of European 
The risks of expansive activities.
people.
Health Policy of European Union
First Objective : Improve Citizens Health Security
Second Objective: Promote Health And Reduce Health
Inequalities
Third Objective : Generate And Disseminate Health
Information And Knowledge

The programme is
managed by The
Commission
and Public
Health
Executive
Agency (PHEA)

Source: Health Programme 2008-2013, European Union

 EU Market
Country Western EU Eastern EU
Germany Greece Netherlands Poland Czech Hungary
Comparison Developed
Total population (million)

Children under 15 years

82,247.02 11,217.11 16,389.96 37,926.87 10,262.06 10,035.02

pensioner over 65 years 13.81 14.19 17.82 15.18 13.84 15.03

Geography (Transportation) 19.92

Sea - Humburg, 18.57
Sea - 14.86
Sea - 13.40
train from 14.70
inland 16.29
inland
train from chinaPireaus Rotterdams china
compe BD • • • • • •
titors
Star Syringes - - -
health Expenditure per capita $ 3737 3101 4063 1213 1781 1437
health Expenditure as % of GDP 10.5 9.9 9.9 7 7.1 7.3
% of vaccination against measle,91.1/97.6/no
DTP, influenza 88/88/no 96/97/76 97/98/no 97.1/98.4/n 99.8/99.8/n
data data data o data o data
3274
number of hospital and clinic (2010) 316 175 810 252 173

Data Source:
 Mode of Entry – Joint Venture
“Jointventure is an equity mode of market entry. It entails
establishing a firm that is jointly owned by two or more
independent firms” (Peng,2010)
Advantages:

vShared start-up cost and Risk

vGaining local knowledge and political influence

vReduction in the time taken to penetrate the market


ALOKA
Established in 1960, is the
longest operating and pioneer
ultrasound company in the world
with international head quarters
in Japan, European Headquarters
in Switzerland.
v

Why Aloka?
vLocal sales and service offices in almost all 27 EU countries
vIn depth market knowledge
vCredibility and Reputation

REASONS FOR ALOKA TO JOINT VENTURE WITH WEGO

vFull automated manufacturing unit with R&D in the same location
vProduction of cheap and high quality syringes
vCredibility and reputation of the WEGO group

v
BACK-UP PLAN: Exporting through
Sales Subsidiaries to The Netherlands
vSea network link from China to The
Netherland: reduction in
transportation cost
vSafe mode of market entry
vMore cargo
Macro Environment Analysis*

Adopted:* Foundations of economics, 2007

**World Bank,2011
Competitive Advantages of
WEGO
Prices
Quality

Market Knowledge
Collaboration
Joint-Venture strategy Experienced



Becton and Dickinson or BD
Analysis
Potential Market in Head Quarter in France and focusing
Europe in Western Europe

Addition Market Eastern Europe, Africa or emerging

countries

Marketing Strategies corporation with nonprofit-

organisation

Outlets Hospitals, Clinics, …

 MARKETING STRATEGY
( P roduct P romotion )
MEDICOS CAMPAIGN AGAINST UNSAFE INJECTION PRACTICE:
qRisks associated with improper handling and disposal of

syringes
qMedicos, paramedical staff and nurses along with patients are

under the risk of Blood borne diseases like hepatitis B &C

and AIDS
UNISON:
qUnison is Britain and Europe’s biggest public sector union with more

than 1.3 million members.

qAlso UK’s largest healthcare trade union

qTheir health members include nurses,

student nurses , midwives medical

secretaries, admin staffs etc.

 Conclusion

Question no.5