Assess different growth strategies: 1. Product development 2. Market penetration 3. Market expansion 4. Product diversification for this firm based on the financial documents provided below.
EXHIBIT 1: CUSTOMER DISTRIBUTION Financial Year Total Customers Number of Customers in Aesthetics 70 80 90 Number of Customers in Respiratory 280 330 380 2012/13 2013/14 2014/15 350 410 470 EXHIBIT 2: TRADING, PROFIT, AND LOSS ACCOUNT FOR LHC INDIA (US$) Sales & other receipts Direct income Closing stock Total Less: opening stock Purchases Direct expenses Gross profit Add: indirect income Total Less: administrative expenses Selling & distribution expenses Financial expenses Net profit transfer to capital account 201415 558,000 8,890 219,000 786,000 179,000 429,000 2,170 175,000 4,420 179,300 106,000 35,110 17,720 2015-16 518,000 21,470 233,000 772,000 219,000 399,000 890 153,000 4,310 158,000 110,000 7,780 20,000 19,950 20,000 EXHIBIT 3: COMPARISON OF COMPANIES > 4 years |16 years Leader Health Care Derma India Taurus Health Care Segment Respiratory, dermatology Dermatology Respiratory Business type Import, marketing, sales, Manufacture, marketing, Manufacture, marketing, sales, service sales, export, service service Medical & product 21 years knowledge (experiencelage) Market presence Delhi, Faridabad, All over India; some All over India; some Hyderabad, Mumbai, international regions international regions Kolkata Customer support/service Yes Yes Yes Resource strength (11-25 employees 51-100 employees 150 employees Emphasis/key strength Quality performance, best- Value stakeholder Local technologies, affordable in-class products of U.S. relationships, affordable pricing manufacturers pricing Product line strength > 100 products 55 products 6 products EXHIBIT 4: MARKET CONDITIONS IN SELECT REGIONS City in India Delhi (North) Haryana (North) . Jarat (West) Medical Device Market Conditions Major market player typeMedical technology innovators Region strengthProximity to the central government Major market player typeLow-end consumables, dental equipment Region strengthAvailability of low-cost unskilled labour Major market player typeStent manufacturing Region strength-Laser-cutting technology used in diamond cutting modified in India to manufacture stents Major market player typeInsulin pens, medical information technology, cardiac stents and implants, polymerase chain reaction (PCR) machines Region strengthHighly-skilled labour, engineers, and technocrats Major market player typeDiagnostics, critical life- support systems, ophthalmology Region strengthHighly-skilled labour, engineers, and technocrats Karnataka (South) Tamil Nadu (South) . EXHIBIT 1: CUSTOMER DISTRIBUTION Financial Year Total Customers Number of Customers in Aesthetics 70 80 90 Number of Customers in Respiratory 280 330 380 2012/13 2013/14 2014/15 350 410 470 EXHIBIT 2: TRADING, PROFIT, AND LOSS ACCOUNT FOR LHC INDIA (US$) Sales & other receipts Direct income Closing stock Total Less: opening stock Purchases Direct expenses Gross profit Add: indirect income Total Less: administrative expenses Selling & distribution expenses Financial expenses Net profit transfer to capital account 201415 558,000 8,890 219,000 786,000 179,000 429,000 2,170 175,000 4,420 179,300 106,000 35,110 17,720 2015-16 518,000 21,470 233,000 772,000 219,000 399,000 890 153,000 4,310 158,000 110,000 7,780 20,000 19,950 20,000 EXHIBIT 3: COMPARISON OF COMPANIES > 4 years |16 years Leader Health Care Derma India Taurus Health Care Segment Respiratory, dermatology Dermatology Respiratory Business type Import, marketing, sales, Manufacture, marketing, Manufacture, marketing, sales, service sales, export, service service Medical & product 21 years knowledge (experiencelage) Market presence Delhi, Faridabad, All over India; some All over India; some Hyderabad, Mumbai, international regions international regions Kolkata Customer support/service Yes Yes Yes Resource strength (11-25 employees 51-100 employees 150 employees Emphasis/key strength Quality performance, best- Value stakeholder Local technologies, affordable in-class products of U.S. relationships, affordable pricing manufacturers pricing Product line strength > 100 products 55 products 6 products EXHIBIT 4: MARKET CONDITIONS IN SELECT REGIONS City in India Delhi (North) Haryana (North) . Jarat (West) Medical Device Market Conditions Major market player typeMedical technology innovators Region strengthProximity to the central government Major market player typeLow-end consumables, dental equipment Region strengthAvailability of low-cost unskilled labour Major market player typeStent manufacturing Region strength-Laser-cutting technology used in diamond cutting modified in India to manufacture stents Major market player typeInsulin pens, medical information technology, cardiac stents and implants, polymerase chain reaction (PCR) machines Region strengthHighly-skilled labour, engineers, and technocrats Major market player typeDiagnostics, critical life- support systems, ophthalmology Region strengthHighly-skilled labour, engineers, and technocrats Karnataka (South) Tamil Nadu (South)
