A Medical Equipment Companies Global Expansion, Three Potential Countries

The three countries I have identified for further consideration and expansion into them is China, Japan and Canada.

China is a good prospect because it is ranked 11^th as the fastest growing medial import market in the world. China "Imports account for approximately 50 percent of China's USD 2.5 to 3.0 billion medical device market." (Gettman and Decker, 2004, Section A.5.) Canada was another good choice because of the relative closeness to the United States, the Free Trade Zone, and the country ran health care system. Japan is my third choice, I choose Japan because of the desire from the people to be "Amercian" and they are the 2^nd largest importer of Medical products to their country. (Gettman and Decker, 2004, Section A.5.) Below is table outlining the risks and opportunities of each country I have chosen.

China - Risks

"Most Chinese, as many as 85 percent, lack health insurance and only 1 to 2 percent of the population can afford Western standard medical care." (Gettman and Decker, 2004, Section A.5.)

China - Opportunities

"China's market for imported medical device is growing at about 10 to15 percent annually." (Gettman and Decker, 2004, Section A.5.)

Canada - Risks

PM Medical equipment may not be fully covered under the Canada's National Health Care system.

Canada - Opportunities

The Free Trade Zone allows PM to do business in Canada without having to worry about import tariffs.

Japan - Risks

Japans import traffics, and as a established westernized country, this country will have greater market share competition.

Japan - Opportunities

Japan is the 2^nd largest importer of Medical Equipment (Gettman and Decker, 2004, Section A.5.)

In addition to the above opportunities mentioned, the following data is another important opportunity we must consider.

Japan is rank 6 as to the life expectancy at birth (years) with the average life expectancy at 81.15 years. Canada is rank 12 at 80.10 years, and China is rank 107 at 72.27 years. (World Fact Book, 2005)

Let me identify the culture, politics, economics, legal and technology of each country so we can fully understand how we must do business in these countries.

China