Context Sources of Competitive Advantage

Performance
External Positional
Market:  Actively involved in India since 1989, brand
 Current size is USD 2 recognition is there but brand equity is
billion, CAGR expected 12- limited only to high-end consumers who
14% use imported products
 High Market Gap: Govt
contributes only 1.15% of
GDP (total spending in India
is 4.6% of GDP)
 90% consumers pay out of
pocket (high transparency)
 80% of medical
devices imported
 R&D less than 2% of revenue
 Two R&D infrastructure
extremes of medical
tourism and BoP
inaccessibility
 Growing middle-class,
increasing knowledge of
healthcare, high private
sector involvement
 Highly price sensitive
consumer
 Make In India initiative by
Indian Govt.
 Primary market for Class 1
and Class 2 products
Non-Market:
 Lower literacy rate
compared to
developed markets
 Poor infrastructure in terms
of electricity and roads
Internal Capabilities
A.R.C (See Exhibit 3)  Strong R&D resources that help in creation
Assets of products that are highly consumer-
 Employees (a centric
portion of 22,000)
 JFWTC
 1500 Researchers
 Patents
Context Sources of Competitive Advantage

Performance
External Positional
Market:  Strong brand image and high brand equity
 Current market is USD owing to the company’s longstanding
100 billion, CAGR position. Especially after Jack Welch
expected 6% turnaround of management.
 Low market gap, govt.
spends considerably
on healthcare
 Low Transparency as
most consumers pay via
healthcare, therefore
less price sensitivity for
consumer
 Primary Market for
Class 1, 2, and 3
medical devices
 Sound R&D
infrastructure,
spending on R&D is 11-
12% of revenue

Non-Market:
 Higher literacy rate
 Sound infrastructure
for basic facilities
Internal Capabilities
A.R.C (See Exhibit 3)  High-level R&D facilities and expenditure
Assets ensure consumers get high quality premium
 46,000 products
employees
 Global
Footprint in
more than 100
countries
 Eight Business
Units
 R&D operations
in 6 countries