Topic

CASE ANALYSIS OF
BELLA HEALTHCARE INDIA

Course Title: Strategic Management

Course Code: F-408

Submitted To

Samia Sultana Tani

Associate Professor
Faculty of Business Studies
University of Dhaka

Submitted By

Group No: 8
Section: A
B.B.A (18th Batch)
Department of Finance
University of Dhaka

Date of Submission
7 February, 2016

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GROUP PROFILE

Group No: 8
Serial No. Roll No. Name

1 18-049 Sharafat Ahmed

2 18-065 Jannatul Naima
3 18-087 Obydul Hoqe

4 18-145 Robin Hossain

5 18-153 Saiful Islam Chowdhury
6 18-155 Billal Hosen

7 18-161 Bristi Karmaker

8 18-201 Md. Ayub Afnan
9 18-259 Shahanaz Parvin

10 18-263 Safwan Chowdhury

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LETTER OF TRANSMITTAL

7th February, 2016

Samia Sultana Tani
Associate Professor
Department of Finance
University of Dhaka

Subject: Submission of term paper.

Dear Ma’am,

With great pleasure and honor we are submitting our term paper titled “Case Analysis of Bella
Healthcare India”. The term paper represents the practical implementation of strategic
management models and theories. It also postulates the implementation of problem solving and
decision making process. Though this term paper has been prepared for educational purpose,
it will be an effective one to achieve the goal in practical field.

We have tried our level best to accommodate as much information and relevant issues as
possible and follow the instructions that you have given us.

We would like to thank you for providing me with the opportunity to prepare this term paper.

Sincerely Yours,

Roll No. Name Signature

18-049 Sharafat Ahmed
18-065 Jannatul Naima
18-087 Obydul Hoqe
18-145 Robin Hossain
18-153 Saiful Islam Chowdhury
18-155 Billal Hosen
18-161 Bristi Karmaker
18-201 Md. Ayub Afnan
18-259 Shahanaz Parvin
18-263 Safwan Chowdhury

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TABLE OF CONTENTS

Executive Summary ................................................................................................................................................ 5

Chapter 1: Introduction ......................................................................................................................................... 6
Chapter:2Problem Statement............................................................................................................................... 10
2.1Objectives ........................................................................................................................................................ 10
2.2 Constraints...................................................................................................................................................... 10
2.3 Achievability ................................................................................................................................................... 10
Chapter 3: Analysis of Bela Healthcare India………………………………………………………………………………………………..…11
3.1 Resources and Capabilities of Bella Healthcare, India .................................................................................... 12
3.2 SWOT analysis of Bella Health Care India ....................................................................................................... 14
3.35C analysis of Bella Healthcare India ............................................................................................................... 16
3.4 Porter’s Five Forces Analysis........................................................................................................................... 18
3.5 PESTEL Analysis............................................................................................................................................... 21
Chapter: 4 Why Did Project Baton Failed? ........................................................................................................... 23
Recommendations................................................................................................................................................ 25
Chapter 5: Should project "TKO" Be Taken?.........................................................................................................26
Bibliography.......................................................................................................................................................... 31

List of Figures
Figure 1: SOWT Analysis Model ............................................................................................................................ 14
Figure 2: 5C Model................................................................................................................................................ 16
Figure 3: Porter's Five Forces Model .................................................................................................................... 18
Figure 4:PESTEL Analysis Model ........................................................................................................................... 21

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EXECUTIVE SUMMARY

Bella Healthcare wants to provide an adaptable product for India and so it is working with low
cost suppliers and transition through the entire process of R&D to manufacturing. They are
exposed to a great challenge from its competitors as they could be working on the same project.
Besides, competitors like GE and others have about 2 years’ experience in the R&D field.
However, Lack of health insurance of about 90 percent of population may result in lower ROI
and turn into another failed project.

Resources are tangible, for example: equipment, machinery, mail list etc; intangibles, for
example: brand name, customer knowledge, money etc, or human assets that the firm currently
possesses. On the other hand, Capabilities are complex patterns of skills in deploying resources
(e.g., patents, know-how, brand names, equipment) to perform a task or activity to produce a
desired end result. Bella Healthcare has some physical resources and human resources. But the
amount of financial and informational resource is quite low for them.

The point of a SWOT analysis is to help the company to develop a strong business strategy or
choosing appropriate business project by making sure the company have considered all of the
company’s strengths and weaknesses, as well as the opportunities and threats it faces in the
marketplace. S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities,
and Threats. In this report we have shown a comprehensive SWOT analysis of Bella
Healthcare.

Further, we have discussed about the 5C’s of Bella Healthcare. It is a useful framework for
performing a situation analysis is the 5C Analysis. The 5C analysis is an environmental scan
on five key areas especially applicable to marketing decisions. It covers the internal, the micro-
environmental, and the macro-environmental situation. The 5 C analysis is an extension of the
3 C analysis i.e. company, customers, and competitors, to which some marketers added the 4th
C of collaborators. The further addition of a macro-environmental analysis results in a 5 C
analysis. Porter’s five forces model has been also analyzed for Bella Healthcare.

PESTEL analysis is a very effective tool to measure the various macro-environmental factors
that can impact an organization. It is always prudent that organizations analyze their external
market environment through the PESTEL analysis before launching any new project or service
in the market. PESTEL analysis analyzes the Political, Economic, Social, Technological,
Environmental, and Legal aspects of an organization. We have shown a comprehensive
PESTEL analysis for Bella Healthcare.

Project TKO is an ambitious but viable project. Since project TKO will be majorly tasked to
India team, there is less possibility that cross-cultural misunderstanding will impede the
project. Therefore we recommend that Bella India undertake this project as it has the resources
and capabilities to do so.

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C HAPTER 1:
INTRODUCTION

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INTRODUCTION

In this section of the term paper, we tried to describe the Origin of the Report, Objectives of
the Report, Scope of the Report, Methodology of the Report and Limitations of the Report.

1.1 Origin of the Report:

The B.B.A program under Department of Finance, University of Dhaka requires submitting a
term paper on a specific topic determined by the course teachers for each course. According to
this rule, our honorable course teacher Ms. Samia Sultana Tani assigned us a term paper on
“Case Analysis of Bella Health Care India” for the course Strategic Management, F-408.

1.2 Objectives of the Report:

After being assigned on this term paper we have tired our level best to fullfill the flowing
objectives:-

 Describing Concepts of Strategic Management.

 Analyzing Bella Health Care India.
 Analyzing Health Care Industry in India.
 Demonstrating practical uses of various model of strategic management.
 Making recommendation on Project TKO.

1.3 Methodology of the Report:

When we started collecting data to prepare this term paper, we have gained new experiences
about an important subject matter of Strategic Management and Health Care Industry in India.

Primary Data: As it is a case analysis, we did not use any primary data while preparing
this term paper.
Secondary Data: To prepare this term paper we mainly use Secondary Data from
provided case, text books and internet.

1.4 Scope of the Report:

Main scope of this term paper is to use the findings of the case analysis in the practical work
field. Moreover this will be helpful as an academic material to teach the students about the
strategic management and its implementation.

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1.5 Limitations of the Report:

We faced some constrains during the preparation of the term paper. Those problems are-

 There was very little expected information on website about this topic. As a result,
we have to use assumed data in most cases.
 There is lack of report and research papers relating this topic which has made our
task dificult.
 Shortage of time made the job further more complicated for us. We did not have
enough time to prepare the report more carefully

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C HAPTER 2:
PROBLEM STATEMENT

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2. PROBLEM STATEMENT

We are analyzing the case of Bella Healthcare that was founded by two brothers, Todd and
Greg Bella in 1969. In this report, we are trying to solve the problem of whether Bella India
should accept Project TKO after their previous project failure, Project Baton. Project TKO
has been targeted especially for the local market in India to develop an EKG equipment.

2.1 OBJECTIVES

Bella Healthcare wants to provide an adaptable product for India and so it is working with low
cost suppliers and transition through the entire process of R&D to manufacturing. Objectives
of Project TKO are discussed below:

1. Customer Satisfaction in the areas of portability, ease of use, connectivity and

affordability.
2. Easy transportation with a travelling physician with a weight of 2 kilograms or less.
3. Battery operation for areas with unreliable electricity.
4. Easy to operate with limited training.
5. Mobile connectivity to operate telemedicine.
6. Cost effective manufacturing to capture pricing advantage.

2.2 CONSTRAINTS

Bella Healthcare is exposed to a great challenge from its competitors as they could be working
on the same project. Besides, competitors like GE and others have about 2 years’ experience
in the R&D field. However, Lack of health insurance of about 90 percent of population may
result in lower ROI and turn into another failed project.

2.3 ACHIEVABILITY

If Bella becomes successful in this project, it will open the door for its business in other
developing countries. India has both large population and the highest heart disease rate. So it
may actually pave the path of customized technology in the healthcare industry.

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C HAPTER 3:
ANALYSIS OF BELA HEALTH CARE

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3.1 RESOURCES AND CAPABI LITIES OF BELLA HEAL THCARE, INDIA

Resources are tangible (e.g., equipment, machinery, mail list), intangible (e.g., brand name,
customer knowledge, money), or human assets that the firm currently possesses. On the other
hand, Capabilities are complex patterns of skills in deploying resources (e.g., patents, know-
how, brand names, equipment) to perform a task or activity to produce a desired end result. For
an organization, to succeed, both of them are the first and foremost things that the firm wants
to ensure.

Bella Healthcare, in India, has flourished itself with several strengths which it uses to make
itself a better place to invest. Simply, some resources and capabilities, the firm can use to build
a new product in India. But some are also impeding the firm to do so.

Resources Capabilities
Physical Product
Resources Management

Financial Pricing
Resources Management

Human Customer
Resources Relationship

Figure: Resources and Capabilities of Bella Healthcare, India.

Resources
Physical resources: Some manmade assets which are formed in tangible things in the
organization are physical resources. Such assets or resources include building,
machineries etc. For Bella, in India, physical resources are quite available. The firm has
buildings, machineries and production capacity to produce.
Financial resources: Financial resources are money available to
a business for spending in the form of cash, liquid securities and credit lines. Before
going into business, an entrepreneur needs to secure sufficient financial resources in
order to be able to operate efficiently and sufficiently well to promote success.
In case of Bella, in India, financial resources are not available much. Even after success
of its product “Kawu 606”, the failure in project “Batan” simply put the firm in great
financial distress. So, to take any project to build new product, the firm has to be very
cautious.

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 Human Resources: Human resources include the people working in the organization.
From the workers to top level managers, each and every one is entitles as human
resources for the firm.
In Bella Healthcare, India, human resource is the only resource that is abundant. For
the cheap labor, the workers are available. Even experienced engineers are available in
here as world’s best engineering schools are situated in here. So, to build a new product
in India, human resource is always available.
Informational Resources: In today’s world, it is just not possible to succeed without
information. A firm has to collect information related to:
 Customer
 Market situation
 Availability of competitors in the market region etc.

In India, customers are not much health cautious. Even most of the hospitals don’t keep
many record regarding patients. Government also doesn’t imply any law to keep exact
records. For this reason, informational resource about the market is not available for
Bella Healthcare which impedes the project to build new product.

Capabilities
Product Management: A certain capability to develop a product and to deliver superior
quality or customized goods is product management. Bella Healthcare, with a strong R
& D team, can make any product. Jeremy Manning, director of R & D sector, having a
strong, experienced, talented team, have the capability of product development.
Pricing Management: This is an ability to extract the optimal revenue & profit from
customers through price discrimination tactics, for example, using a sophisticated
yield management system capability. This is unrelated to the ability to charge a high
price (which is a function of product or marketing differentiation) or a low price (which
is a function of cost leadership). Bella Healthcare, India has so many strong
competitors in India. So, beating them and making a huge profit is relatively hard for
it, especially after failure in project “Batan”. So, the firm is weak in such capability.
Customer Relationship: It is an ability to identify profitable customers and prospects
and initiate, maintain, and leverage relationships with these customers to create
superior customer-level profits. There are so many heart patients in India. So, in one
sense, firm is able to make new product. But, identifying the number of them, making
personalized communication is hard in here. So, the firm has a medium level of
capability in customer relationship.
Simply firm has several resources and capabilities. Due to lack in some capabilities,
firm may not succeed completely. And also, it is a challenge for the firm to succeed in
cross-cultural environment. But having some resources and the abilities to use them
firm is in strong position to go ahead with building a new product.

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3.2 SWOT ANALYSIS OF BELLA HEALTH CARE INDIA

The point of a SWOT analysis is to help the company to develop a strong business strategy or
choosing appropriate business project by making sure that the company have considered all of
the company’s strengths and weaknesses, as well as the opportunities and threats it faces in the
marketplace. S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities,
and Threats. Strengths and weaknesses are internal to the company and on the contrary
opportunities and threats are external. To point that, strengths and weaknesses of a company
can be changed or developed but opportunities and threats can’t be changed rather the company
has to face these with their strengths and capacity.

Figure 1: SOWT Analysis Model

Here like every company Bella Healthcare India also have to consider such internal and
external factors which can justify their capability to go for their new project. The SWOT
analysis for the company is described here:

A) Strengths: Strengths are the characteristics of the business or project that give it an
advantage over others. The strengths of Bella Healthcare India are:

1. Bella Healthcare India has an established market in India

2. Highly qualified employees

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 3. They are excellent, efficient and most experienced in the field of machine
electrocardiograph

4. They had a visionary mindset

B) Weaknesses: Weaknesses are the characteristics that place the business or project at a
disadvantage relative to others. The weaknesses of Bella Healthcare India are:

1. Poor cultural communication among divisions of the company across the country

2. Recent failure in a project named ‘Project Baton’

C) Opportunities: Opportunities are the elements that the project could exploit to its
advantage. The opportunities of Bella Healthcare India are:

1. They have already gained a profound knowledge about the entire market of India

2. Growing need in the market

3. Scares of supply in the market

D) Threats: Threats are the elements in the environment that could cause trouble for the
business or project. The threats of Bella Healthcare India are:

1. Two years research and development advantage of Bella Healthcare India to their
competitors

2. Already there are successful companies in same product line

3. Competitors are also working on the same project

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3.3 5C ANALYSIS OF BELLA HEALTHCARE INDIA

A useful framework for performing a situation analysis is the 5C Analysis. The 5C analysis is
an environmental scan on five key areas especially applicable to marketing decisions. It covers
the internal, the micro-environmental, and the macro-environmental situation. The 5C analysis
is an extension of the 3C analysis i.e. company, customers, and competitors, to which some
marketers added the 4th C of collaborators. The further addition of a macro-environmental
analysis results in a 5C analysis. The aspects of 5C analysis related to Bella Healthcare India
are outlined below:

Company

Customer Collaborator

Climate Competition

Figure 2: 5C Model

1. Company: The company analysis involves evaluation of the company's objectives, strategy,
and capabilities. Bella Healthcare India is desired to serve the emerging market of India with
their new innovation and development and they spend much on their research. Again they have
a rich background and enriched experience in the market of India.

2. Collaborator: Under this section company analyzes the people with whom it is possible to
establish cooperation. Bella Healthcare has a better understanding and more effective work
relationship with the low cost supplier which in result helps them to reduce their cost.

3. Competition: The competitor analysis takes into consideration the competitors position
within the industry and the potential threat it may pose to other businesses. To consider the
competitors, telemedicine advantage over their devices and cost efficient manufacturing could
give an edge.

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4. Climate: This is the analysis of other environmental conditions of the business operation.
The climate testifies that in the market, there is a growing market in India with scarcity of
supply. Again, there has a large scope of offer customized Healthcare products to the customers
to meet their specific needs.

5. Customer: Here company analyses the markets, customer segments that will be served by
the company. Their customers who are from rural and remote areas need portable and cost
efficient diagnosis. Other customer segments are the urban people with increasing income and
improving health insurance.

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3.4 PORTER’S FIVE FORCES ANALYSIS

Buyers Power:

Demand is exceeding supply:

India’s demographics are changing, economy is growing, there is a shift in the disease patterns
and awareness of health and fitness is increasing by the day. The demand for healthcare services
has indicated a CAGR of 16%. India is falls short on various key health indicators for e.g.
hospital beds per 1000 stands at .7 whereas the world average is 3.96. There is a big mismatch
between demand and supply of healthcare infrastructure and services in India. Bella Healthcare
India can take this opportunity of market gap. By providing its modern diagnostic ECG
machine it will be able to capture market share.

Medical Tourism:

The increase in medical tourism in India has led to increase the demand for medical services
in India. The increase demand in medical service will create pressure on medical instrument
suppliers. Bella Healthcare India will get benefit of increased medical service demand in India.

Figure 3: Porter's Five Forces Model

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Suppliers Power:

Equipment Players:

The competition in the equipment market in is on a high. Consumables and disposable

equipment are made locally whereas high value equipment’s are made by international
companies. As high value equipment’s is made by international companies, Bella Healthcare
India will be able to expand its operations in India. The company has to give more importance
on quality otherwise highly cost project will be faced the possibility of failure. Other
international companies have expanded their operations to the Indian market and established
assembly centers. The government is encouraging the growth of this market. So Bella
Healthcare India will face huge competition in expanding its operation.

Rivalry among Competitors:

Increasing Competition:

The drugs and pharmaceuticals sector has attracted FDI worth $1.66 billion. Hospitals and
diagnostic centers have received FDI worth $761.18 million. Presently the market is
fragmented but the market is changing. The sector is organizing into distinct sectors which are
one more reason the competition is increasing. Investments are increasing by the day as the
potential in this market in India is very high. Only 20% of the market is tapped.

Low Competition from Public Sector:

The share of private sector in India is 78% which is mostly out of reach for the rural and poor
population of the country. The government is only providing 15-20% of the amount. There is
a great opportunity for the private players. Bella Healthcare will be able to market player if it
can understand the market demand perfectly.

Threats of New Entrants:

Encouraging Government Reforms:

The government does not have the financial strength for large scale investment in the healthcare
sector, government is encouraging FDI in the country. There are no barriers of new entrants in
this market. If Bella Healthcare India can make strong market demand earlier, new entrants
will not be able to compete with it.

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Barriers for Foreign Firms:

Even though government is encouraging FDI in the country, there are very few FDI hospitals
in India. Other forms of funding are more prevalent. The reason for this can be long gestation
period of investments and relatively low rate of return.

Threats of Substitutes:

Alternative sources:

Bella established its Indian operation in1990. It has better knowledge about the Indian market.
Its EKG equipment could be better suited to the needs and resource constraints of local market.
Major EKG manufacturers in India are GE Healthcare, Philips and Schiller AG. Bella’ revenue
comes from providing high end equipment to private hospitals like Apollo. Besides, low end
EKGs are available from local, Chinese and Korean market.

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3.5 PESTEL ANALYSIS

PESTEL analysis is a very effective tool to measure the various macro-environmental factors
that can impact an organization. It is always prudent that organizations analyze their external
market environment through the PESTEL analysis before launching any new project or service
in the market.

PESTEL analysis analyzes the Political, Economic, Social, Technological, Environmental,

and Legal aspects of an organization. It is a very important tool for measuring market growth,
market position and direction in which a business is moving. It helps the organization to gather
necessary information for successful operation in the future.

Here we discuss about the PESTEL analysis of Bella Healthcare:

Figure 4: PESTEL Analysis Model

Political Factors:

Political factors include Taxation policies, foreign trade regulations, political stability, labor
laws, environmental laws, etc. Organizations need to adjust their marketing policy with current
and anticipated future legislation. Public expenditure on healthcare is lower than other
developing countries, so private sector generally dominates the healthcare industry. The
government generally facilitates the functioning of the healthcare industry and helps attract
foreign investors through various investment opportunities and tax incentives. The government
is also encouraging public-private partnership in the healthcare sector.

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Economic Factors:

Economic factors include economic growth, inflation, currency exchange rate, interest rates,
etc. Economic factors can be of macro-economic and micro-economic factors. Most of India’s
healthcare expenditure comes from patients belonging to higher income households. The trend
of rising income is leading to a rise in the income level of the rich and the middle-income
household groups. Overall, economic factors have great impacts on the organization’s
business and profit.

Social Factors:

Social factors take into consideration attributes such as demographic population, income
distribution, lifestyle changes, social mobility, attitude towards leisure and spending, etc.
These factors directly affect the shelves of product. Social analysis helps in understanding the
customer view and what drives them. The large size of the population of India, along with the
raising awareness about healthcare has the potential to drive up the market for Bella
Healthcare.

Technological Factors:

Technological factors are of a great significance in terms of the healthcare industry. This
industry depends on thousands of technologies and diagnosis equipment which can soon be
turned into obsolete equipment. Moreover there is severe competition among various
competitors regarding the healthcare technologies. The existing technologies and their potential

Environmental Factors:

Environmental factors have become a really challenging issue due to many constraints and
scarcity. These factors include environmental issues like rate of carbon emission, climate
change, habits, diseases, decrease in raw material pollution targets, customer demand for ethics
etc. In the healthcare sector, environment agendas and community awareness will make Bella
Healthcare to achieve the goal of raising awareness about the various environmental factors
regarding the Healthcare sector.

Legal Factors:

Legal factors include company laws, labor laws, remuneration laws, consumer’s rights and
laws etc. It is very important that companies understand what to do and what not to do for
successful trade. Though India has a huge population, a bigger percentage of them do not have
any access or any knowledge about the health insurance. On the other hand, awareness
regarding various laws and regulations about the healthcare is also very low. A vast population
here does not have any idea about the legal rights and responsibilities of them. Initiatives
should be taken to increase the legal awareness among the citizens.

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C HAPTER 4:
WHY DID PROJECT BATON FAILED?

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WHY DID PROJECT BATON FAILED?

Project Baton was a costly joint venture. Therefore, it was needed to design a new, lower cost
stress test system. This project was cancelled after 4 years. Several reasons worked behind
these which are as follows:

 Two new engineers were hired for this project who did not have enough exposure to
Bella’s India background and organizational culture
 St. Louis based project manager does not seem to have enough time to adapt his
management style to local company style and he was too inflexible and impersonal.
 More cultural misunderstandings as there was no effort to bridge the differences.
 Conflicts in priority between design engineers (R&D) and manufacturing occurred as
no defined role as discussed.
 Each team focused on performing their task without incorporating vital input from
others. The US team did not discuss specification with manufacturing team and
component suppliers.
 The multiple prototype iterations caused the suppliers losing trust in Bella India’s
promise for future production volume. As a result, the project lacked the lead time
needed for critical components essential to forecast product outcome.
 Cultural nuances were missed. Though team India had high risk aversion, it, previously
accustomed to sourcing for final stage product, was tasked with sourcing prototype
which is an unpredictable cycle of failure, revision.
 No clear organizational process were implemented

Project TKO is an ambitious but viable project. Since project TKO will be majorly tasked
to India team, there is less possibility that cross-cultural misunderstanding will impede the
project.

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RECOMMENDATION:

Therefore we recommend that Bella India undertake this project as it has the resources and
capabilities to do so. And in the process it

 Should try not to repeat the same mistakes from the project Baton
 Should allow room for proper research and understanding of the market.
 Should focus on training its employees to reduce their skill gap

From the above discussions it can be said that proper planning, management and
coordination can provide Bella India with success in the project TKO.

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C HAPTER 5:
SHOULD PROJECT “TKO” BE TAKEN?

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SHOULD BELLA HEALTHCARE INDIA TAKE ON PR OJECT TKO

Should Bella Healthcare India take on Project TKO and develop an EKG specifically for the
local market? Why or why not?

TKO, “Technical Knockout”, is single channel EKG, Bella Healthcare India is planning to
launch in Indian market. As per our opinion, Bella has many reasons to take up this opportunity.
We have categorized these reasons in two broad categories, External and Internal factors.

First external factor that affects decision of Bella to take TKO is large population of India
with insufficient health care services. India’s population is large and growing but healthcare
facilities are not growing with the same rate. Also most of the medical facilities of the country
are concentrated in urban areas, leaving rural area with insufficient healthcare facilities.
Unfortunately, most of the Indian population stays in small towns and villages. Another fact,
in line with this, is availability of less no of physicians and specialists in the field of heart
diseases. This has created room for medical services and devices sellers to expand their
businesses in the country. The EKG global revenue chart shows that between 2010 and 2015,
9% – 12% of the global revenue will come from Asia-Pacific. As one of the second highest
population country in Asia-Pacific, India will definitely contribute major portion of the
revenue. The figures in the chart substantiate the fact that Bella has good scope to expand its
services in the country.

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Second factor that helps Bella to take go ahead decision for TKO is increased rate of heart
diseases in the country. As per different epidemiological and angiographic studies, Indians are
showing heart disease symptoms at young age and there are approximately 30 million CAD
patients in the country. This number is expected to double by 2015. These patients will
definitely need more and more medical checkup and diagnosis facilities, that are not available
at this point of time. This will give scope to Bella to capture the growing market. Third factor
is raising awareness towards health that in turn increasing willingness of Indians to pay for
medical services. Willingness is one of the critical factors in any market and in this case this
factor is already in favor of medical industry and so of Bella healthcare.

These favoring factors come with the great challenges, which Bella has to tackle. First
challenge is competition with world class healthcare company GE, local company BPL health
and few more Chinese and Korean companies. These companies have already captured
considerable market. But not all of them are providing complete solutions to suit Indian market.
Primary need of the Indian market is cost effective medical instruments. Few companies are
providing cheaper solutions but those solutions come without any warranty and post-sale
customer service. Bella has identified the challenge and need of providing cost effective
complete solution to satisfy needs of Indian market and defined its product TKO with four
design principles; profitability, affordability, ease-of-use and connectivity.

Many of the Indian families fall in low income categories and health insurance facilities are
not yet spread across the country, especially rural part of the country. Because of these factors
Indians are more inclined towards cheaper medical facilities and so investors are inclined

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towards reasonable ROI. This justifies the profitability and affordability criteria of Bella’s
TKO, which will help medical professionals to set up good ROI on its investment while
providing affordable solution to the people.

Limited number of physicians and specialists in the country can limit the use of TKO.
Also concentration of population in small towns and villages, where transport facilities are not
up to the mark, creates need of portable devices. To tackle these issues Bella has defined its
third design principle of ‘ease-to-use’. This will make TKO weight 2 Kg. or less and one touch
operating device so that physicians could handle it with minimum training. Indian villages still
face electricity issues and Bella is will provide solution to this problem by giving battery
operated device. Bella is addressing issue of unavailability of trained physicians with its fourth
design principle ‘connectivity’. This design feature will help physician to transmit data
wirelessly to cardiac specialty centers and work with general practitioners to diagnose the issue.
Thus these four design principles will help Bella to address all the key issues of heart disease
diagnosis equipment. In addition to the new wireless data transfer feature, Bella’s design team
is exploring the possibility of adding DICOM feature in TKO. Even though DICOM feature is
not critical in near future, it will help Bella to differentiate its product from GE’s similar
product and will give upper hand in marketing the device.

Now, let’s concentrate on internal factors. Bella healthcare India, part of global organization,
has its own strengths, which will lead it to the successful handling of TKO. First strength of
the company is its India head Joseph Cherian, who has handled initial set up of Bella India and
successfully leaded the production of many devices, and Design head Jeremy Manning, who
came from US with 10 years of rich experience in medical devices development and
manufacturing. Cherian has his own proven, tough and no-nonsense management style and he
always keeps close eye on production schedules and product quality. These two leaders worked
together before with Bella India team for successful delivery of Fit X17 and so are aware of
strengths, weaknesses and issues of Indian design and production teams. This awareness will
help them to identify and tackle different issues. It will also help them to define strategy, which
will suit to the Indian organization. Most important, both the leaders are very confident about
TKO and that will help them to lead the team to the success.

Second factor is easy and ample availability of Indian engineering talent at affordable cost.
This talent can be best utilized further with the product specific trainings. This makes
replacement and expansion of the work force easy in difficult situations. Third factor, that
makes Bella India more suitable for TKO, is its cultural and location proximity to the Indian
market. This helps team to understand and address key needs of Indian market. Also, proximity
will help to find low cost component suppliers and deal with them effectively. These elements
will reduce cost of production, speed up the prototype and production process and in turn will
reduce time to market.

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Fourth factor is already built and proven base of cost effective manufacturing of Bella India.
This shows the experience of the unit in cost reduction techniques. This experience further will
help to reduce TKO development and production cost. This prediction of cost effectiveness can
be substantiated by Exhibit 1, which depicts that design and production in India will reduce the
production cost to approximately 55%. Also, even though TKO is new project for Bella India,
its parent company in US has a single channel EKG product already marketed. This may help
Indian team to get any last minute design assistance or make them aware of common problems
the product will face. This will speed up their design and production process.

Last and foremost important internal factor is experience of the Bella India’s team of many
successful production deliveries and failure of project Baton. This not only helped team to
realize its strength but also helped to understand its mistakes. Experience of Baton has already
covered the learning curve of the team and that is one of key speeding factor to TKO.

Bella Healthcare India will definitely face few issues during TKO production. One of the key
issues is time to market, especially when companies such as GE, BPL are already in market.
But the well-equipped, talented, experienced team of Bella with its four design principles will
handle all the issues and lead to the success. Looking at the features Bella is incorporating in
TKO; it is not providing EGK equipment but the complete solution for CAD diagnosis. If the
team successfully completes this project and captures even 10% of the market for TKO, it will
provide approximately $3 million business, over the period of approximately 7 years, to Bella
Healthcare. If I move out of the boundaries of India and consider other developing countries,
then the prospects for business are even higher as most of the developing countries have similar
criteria for healthcare facilities and equipment.

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BIBLIOGRAPHY

 Hill, C. and Jones, G. (2014). Strategic management. Boston: Houghton Mifflin Co.

 Leonard, D. and Yong, S. (2012). Bella Health Care India. Harvard Business
Publishing.

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