The Country Portfolio Analysis (CPA) is a technique used for “deciding where a company should compete.” It focuses on national GDP and accentuates potential sales. What CPA does not take into consideration is the risk and cost of bringing a business into a new market. The two countries Genicon should consider for expansion should be Brazil and China. Brazil should be selected because it’s “rapidly growing population and the governments commitment to expanding access to essential health care.” However what really puts Brazil ahead is the law “obligating the country to increase health care spending to a minimum of 10% of GDP.” Considering forecast totally health expenditures will steadily rise assuming all else stable. As for China, Genicon should expand here because as stated by the case GDP is 2,969. This is among the highest GDP’s and its growth. However, due to this large population the GDP per capita is low. China puts the payment of the healthcare system in the hands of government and not the families, yet opportunities in this market are forecasted to …show more content…
Brazil would be the number one option because of its strong demand for healthcare, steady GDP, it’s large economy, and its dependency of imports in medical devices. China would be the second option because of their government interference. It would take a lot more time to get devices regulated in China than it would Brazil. However, China has a fast growing economy and the medical device industry is continuing to grow.
Russia would be the hardest market to breakthrough because of their high regulation, poor logistic infrastructure, and government risk. In India, Genicon would be faced with problems such as intellectual patents, making it hard for them to compete in the market.
4. Based on the analysis above and my management instincts, Genicon should choose to enter Brazil. The medical device market has become the largest in Latin America, there is little to no political risk, and the dependency for imports in this market is huge. This allows Genicon low entrance barriers and room to expand without government interference. Personally, I have limited international traveling experience, but based on this analysis I have learned the different factors involved in international business and realize there is a lot of research that goes into international business