write an essay with answering the following two questions : 1.What are the main features of frugal innovation? 2.Are frugal innovations an opportunity or threat to emerging markets? Answer these two questions based on the study points from the attached PPT(Frugal innovation&emerging markets). No charts or diagrams in the essay. must give some example and some points from the following supplementary readings. Need to have reference! Very important! No cover page. 8 pages essay excludingreferencepage.
Supplementary reading on this topic:
- The Economist“Special Report on Innovation in Emerging Markets”, 17thApril 2010 and especially “The world turned upside down”; “First break all the rules”; and “New masters of management”. This is available at:http://www.economist.com/node/15879369
- Wagstyl, S (2011) “Innovation: replicators no more”,Financial Times, 5 January 2011. This available at:http://www.ft.com/cms/s/0/97a67340-1904-11e0-9c12-00144feab49a.html#axzz1D0NsKuqb
A case study of reverse innovation: GE’s portable ultrasound machine (based on Immelt, Govindarajan & Trimble (2009) “How GE is disrupting itself”) GE Corporation GE: amongst the largest U.S. companies ($143.7 bn revenues in 2011) Diversified industrial companies with products ranging from aircraft engines to domestic appliances GE Healthcare: $18.1 bn revenues from medical imaging & information technologies, medical diagnostics, patient monitoring systems Ultrasound An ultrasound scan is a test that involves taking pictures of the body using sound waves Ultrasound can be used to look at all soft tissue structures and blood vessels The scan is carried out by a radiologist or ultrasonographer and the images are recorded and interpreted in order to make a diagnosis Ultrasound is used in the diagnosis of many different conditions (cardiology; obstetrics; general radiology) 1990s: GE served Chinese market with ultrasound machines developed in the U.S. & Japan 2002: Conventional ultrasound machine cost $100,000+ Typical customers: sophisticated hospital imaging centres Typical uses: cardiology; obstetrics; general radiology Expensive bulky devices sold poorly in China Innovation for the emerging Chinese market 2002: the new ultrasound launched at a price of $30,000-$40,000 Typical customers: China: rural clinics U.S.: ambulance squads & hospital emergency rooms Typical uses China: identifying enlarged livers & gallstones U.S.: identifying ectopic pregnancies; imaging of accident victims; imaging during operations 2002: local team in GE China leveraged GE’s global resources to develop a cheap, portable ultrasound machine A new global market 2007: a dramatically cheaper model launched priced at $15,000 (a $5,000 model is now available) – sales in China increase sharply Dramatic increase in GE global revenues from portable ultrasound devices 2002 = $4m 2008 = $278m 2009 prices of ultrasound devices Portable device =…