Mens Bugs Bunny 8s Help To Stay In Style. Air Jordan 2 Dark Concord If You Want To Look For Bugs Bunny 8s For Cheap But Real Mens Shoes With a sticker price of up to $1.6 million, MRI machines were not affordable across much of the developing world in 2007. After all, household incomes are considerably lower than in developed countries, and in India, for example, there is no formal health insurance system to compensate providers for MRI exams. Indian physicians charge about $150 for an MRI procedure, compared to $1,000 and up in the United States. Yet, the Indian market (and others throughout the developing world) is enormous and the demand is real. But a scaled down, low quality MRI unit was out of the question for GE Healthcare. For one thing, Indian physicians know the state of the art of western technology. attend conferences here, they have family here, says Jim Davis, vice president and general manager of GE Healthcare Magnetic Resonance business, who is based in the United States. of them trained here. Besides, he says, are on a mission to provide quality care in all markets. A human being is a human being. We don want to discriminate. GE Healthcare began development of the Brivo 355 and its sister product, the Optima 360, MRI machines for technicians using the technology for the first time. Designed, developed, and built in India and China, the machines don compromise quality but do have an easier to read user interface and are easy to operate by technicians who may lack the degree of training they would receive in the developed world. Davis calls them right machines for emerging markets. And at $700,000 to $900,000, they are the right price. GE Healthcare strategy is a departure from the traditional model where no frills products that were built for the developing world stayed in the developing world. Lower cost, stripped down products that can be sold both in high growth and slow growth markets are one example of how companies are addressing new normal a two speed world with two types of markets, each with different characteristics. On the one hand are the high growth economies such as China, India, and Brazil. With growth rates of 8% to 12% and some 2.6 billion people, these markets are hard to ignore, despite their low average household incomes. and Western Europe, for example with growth rates ranging from 1% to 4%, but relatively high average household incomes. In this article, experts from Wharton and The Boston Consulting Group (BCG) consider some of the key challenges that global manufacturers face as they attempt to synchronize their worldwide operations to meet the needs of these two very different markets. To grow, multinationals from the slow speed, developed economies must target fast growing, emerging markets. But to compete against local companies, they need to drive out costs, sharply improve quality or both. In these high growth markets, the challenge for manufacturers is to maintain flexibility and responsiveness while keeping costs down. Whether competing in high growth or slow growth markets, companies need lean products and systems, contends BCG partner and managing director Hal Sirkin. the slow growth world, you need low costs and the ability to respond quickly to customer needs, he says. in the high speed world, you need to be lean to lower your costs, customize products for emerging segments and create the capacity to grow. Companies that cut out waste through lean products and systems have lower costs and are more responsive, with shorter cycle times and higher quality. Benjamin Pinney, a principal in BCG Shanghai office, says that some manufacturers from the slow growth world are responding to market demand in emerging economies by defining a shared platform for production of high end and low end products, often at the same facility. Typically, the high end gets shipped to slow growth Western markets and the low end to high growth, emerging markets. But production can start at the same factory even on the same assembly line with components common to both models. The specifics change by industry and market, says Pinney. automobiles, the common components can be subassemblies or the partly completed chassis. In pharma, it the intermediate chemicals. With assembled goods like mobile phones, it can be partially kitted parts. With electrical equipment, it can be mechanical components for switchgears. all the automotive manufacturers are doing this, notes Pinney. In med tech, many companies are leveraging models for sales aimed at both worlds. Bicycle manufacturers are doing it too, and in the appliance sector, LG is producing frost free and non frost free refrigerators the former for low speed countries, the latter for high speed. But it not simply a matter of making more or different drugs in their current plants for shipment to these emerging economies. Instead, global pharma companies are searching for new ways to organize their go to market model in the new, two speed world. One challenge is how to reconstruct their networks to serve the local markets. and Russia require that pharma companies have local manufacturing operations to access the market, says Farber. several countries, governments say it is critical to the public health and wellness or to create jobs. So, in addition to knowledge of local customs and culture, drug makers and other manufacturers need to steep themselves in the relevant laws. In some countries, a global producer is not allowed to manufacture unless it brings on a local partner. global model, says Farber, more languages, more rules, and different duty, tax and patent issues a new level of complexity that has to be managed. Considering the degree of localization required, bringing a local partner on board might be a good idea even if the law didn require it. a local, act global thing, notes Farber. are regulatory, packaging, and cultural differences. You need to understand local markets and how distribution works. Of course, this has been true all along for multinationals seeking to capitalize on low labor costs by manufacturing in developing nations. But it even more important now that these emerging economies are not just manufacturing hubs but real growth markets and now that there a greater number of small, local companies to compete against. Marshall L. Fisher, a Wharton professor of operations and information management, agrees that what new is that these emerging economies are becoming attractive markets, not just manufacturing bases. emergence of consumer markets is interesting, says Fisher, noting that one of the missions of the Communist Party in China is to develop the country internal economy. think people are saving too much money. has, China has the reverse. The Chinese government desire to grow the internal economy and increase the percentage of income that people spend in China creates opportunities for non Chinese companies to make inroads there. such as Nike, Wal Mart, and Amazon are not the top brands in China. it suggests that you don need to be 1 to be big enough there. China, according to Fisher, tends to be a more fragmented market. But China potential market is so big, there is room to be 10 and still make money. But China also has huge companies with very little global name recognition yet. Fisher points to Foxconn, a $40 billion company with 300,000 employees and a 10 square mile campus. The company makes products for Apple and Motorola, largely for export. but no one has heard of them. Fisher is interested to see what happens to Foxconn as the internal Chinese economy develops. More Than Just Low Labor Costs Companies face a range of challenges as they formulate a two speed strategy for manufacturing, says Michael Zinser, BCG partner and global co leader of the firm manufacturing group. labor costs are lower in developing economies. But companies need to balance the low cost of labor with the added logistical costs and the risks inherent in lengthier supply chains, he notes. Add to that the rising expectations of buyers. don just want the lowest cost, they want to get their products quickly too! The best solution may be for companies in slow growth, developed markets to manufacture in low cost, high growth markets and sell to local consumers as well as to Western buyers. That way, the slower sales growth in the developed markets and the higher logistics costs would be offset by the robust local sales. But it easier said than done. companies first started manufacturing in Asia there were tax incentives, labor rates that were among the lowest in the world, and excess capacity, says Zinser. But some of those incentives have gone away, labor rates are rising (as they are at Foxconn), and logistics costs are higher. said, the cost savings are still there, he notes, you need to be clear about what your objectives are. if you want to tap into the fast growing markets of the developing economies, you might want to set up manufacturing operations there and local sales channels too, he adds. Keep in mind, too, that the no frills products made for emerging markets might also be embraced by consumers in the developed world. Again, this can create more complexity, but more opportunity too. consumers will always want lower priced products, he says. In order to provide both premium and low end products to the domestic market, the company has migrated some production to Mexico. But it has also started manufacturing in Southeast Asia to capitalize on the low labor costs and Asia growing consumer markets. Many companies set up overseas operations to take advantage of lower labor costs, but don take the opportunity to rethink their production processes with an eye toward cutting costs and reducing complexity. Others let quality, health or safety standards slip, says Zinser. A hands off approach in unknown markets can lead to problems. The best way to avoid these problems is to be on site, not on the other side of the world. is no alternative to having feet on the ground, he stresses. have to be there and see exactly what going on. Otherwise, you can end up with massive recalls and a PR nightmare, he says. have to do your due diligence, and you can make assumptions. I seen companies working with contract manufacturers on the other side of the world and forgetting to ask them what their production schedules looks like. But when you there on the shop floor, you can look around, kick tires, ask questions and learn a lot more than you would in a meeting. Wharton management professor Morris A. Cohen was recently in India meeting with Unilever executives. is not much need for marketing in India, he says. is so much demand that companies feel if they can just get their product in front of the customers, they buy it. It not worth spending on marketing. Instead, Unilever in India spends on distribution and consumer education. In some cases, he says, Indian people don know how to use bottles that contain consumer products. Unilever sets up stores run by women in the local villages. It a combination of technology and outreach that meets the local market needs. And knowing what the local market needs at a granular level requires a local presence. Cohen points out that India has significant barriers to entry, such as ownership rules that determine how much of a local company can be owned by a foreign corporation. Other challenges are structural. is an informal economy with lots of little shops by the road, so distribution is an enormous problem, notes Cohen. He recalls meeting with the CEO of a large Indian cell phone company that uses Wal Mart as a distributer, not a retailer, because the Wal Mart name isn well known in India. The distribution challenges are compounded by the country substandard roads and infrastructure. has done a better job of managing infrastructure than India, he says. markets are more easily penetrated because it is easier to transport goods there. depends on where you are selling, says Sirkin. can produce in these markets, sell for less, get your costs down, and take advantage of local market knowledge. and outsource production to companies that are cheaper. and make them in China because, unlike GE Healthcare budget MRI machines, Apple products are the same whether you buying them in New York, London, Mumbai or Shanghai. There is no budget priced iPad designed for developing economies. GE Healthcare, though, has gone through the process of customer segmentation drilling down, analyzing the market data, and coming to a deeper understanding of its target customers buying habits, favorite brands, and perhaps most important their aspirations. Bottom Line on a Two speed World According to Pinney, that are thriving in this two speed world are really good at managing both mass production and just in time production. They able to make fast adjustments up and down the value chain in response to changing market dynamics. And they make smart use of subcontracting to manage capital commitments against different production steps. that want to optimize their operations in the two speed world can learn from those that faced tough economic restraints in the past. is the mother of invention, says Sirkin. Japanese had to compete. They had to keep costs down and eliminate all the waste they could. The companies that got lean produced low cost, high quality products that changed the rules of competition. auto industry. market, and then moved up the value chain to higher end models. country or company that is resource constrained will figure out how to do more with less, as China and India have proven, says Sirkin. competitive markets, if your company doesn come up with a better value proposition, someone else will..

GLENDALE A final nonleague tune up for both the South Pasadena High and host Glendale baseball teams unveiled plenty of concern for each squad Tuesday afternoon at Harvey Field. The host Nitros stumbled out of the gate, allowing the Tigers a slew of early runs and an eventual 8 0 lead before mounting a rally, halving the deficit to four runs, and eventually falling, 11 7, in a game that grew noticeably more contentious as the innings progressed. PHOTOS: South Pasadena vs. Glendale boys' baseball started off on top where we wanted to, South Pasadena Coach Anthony Chevrier said, we sort of lost a little mental focus in the middle and brought it back together in the end. Pasadena (4 3) led, 8 0, after three innings and kept Glendale scoreless until the fifth inning by being opportunistic on offense and mistake free on defense and was then able to fend off a late comeback bid. is the key, I think, Tigers third baseman Will Rygg said. we have a solid defense, all we need to do is hit. first two Tiger batters of the game reached base, with Bryan Bednarski leading off with an infield single and Nick O sending a double down the left field line. Skyler Anselmo followed by grounding a ball directly at Glendale shortstop Eric Winner, whose error allowed the ball to get into the outfield and two runs to score. Anselmo then scored two batters and two outs later on a wild pitch from starter Andrew Swett that sailed over the head of his catcher. The visitors led 3 0 after one. After Tiger starting pitcher Christian Miyamea (1 1) sat the Nitros down in order in the bottom of the first, South Pasadena pushed two more across in the second after loading the bases without hitting the ball out of the infield. Mark Swanson got an infield hit to start and was followed by Paul Amerine being hit by a pitch, the first of five Tigers plunked in the game. After a strikeout, O was also hit by a pitch to bring up Anselmo with the bases loaded. The senior promptly hit a double down the right field line for two RBIs and Glendale trailed by five after two innings. South Pasadena Johnny Karalis led off the third by being hit with a pitch. The senior then scored an unearned from third base with two outs when Winner cleanly fielded a grounder off the bat of Amerine, but double pumped before throwing for an error. O finished the early onslaught for the Tigers by driving in two runs with a single into center field following a walk by Rygg. started off as an error fest by us, Glendale co coach Chris Funaro said. put ourselves in a hole giving up eight runs in the first three innings, most of them on errors. (1 3), which hadn played for a week, scored all of its runs in the final three innings. have to find a way, when game time is here, we have to be ready big time, Funaro said. getting started halfway through the game and that takes too long to get started. the fifth, the Nitros had four singles in their first five batters to score their first two runs and chase Miyamea from the game leading, 8 2. Two mistakes by the Tigers then led to two more runs. First Glendale scored on a Tigers infield error and then on a wild pitch by reliever Justin Ninomiya with two outs. After that pitch eluded catcher Alec Keeling, allowing Sean Harris to score, Keeling retrieved the ball and tried to underhand toss it to Ninomiya covering home as Ethan Howard came around third. Keeling throw, however, hit batter Jacob Funaro, who was standing outside the batter box, and the inning was ended on a batter interference call with the score at 8 4 despite complaints from the Glendale bench and coaches. South Pasadena then answered with a run in the sixth. Anselmo led off with a triple and then scored on a sacrifice fly by Keeling. For the game, Anselmo went three for five with two doubles, the triple, a run scored and two RBIs. However, he was not around to see the end. After Glendale scored a run in the bottom of the sixth, South Pasadena answered once again with two of their own in the seventh by way of one hit and two Glendale errors. The first run came on a sacrifice fly by O for his third RBI of the contest. The second came with two outs on a passed ball. Then, with the bases loaded, Nitro Brandon Keen uncorked a wild pitch, prompting Anselmo to try to score from third. However, Funaro blocked the plate and held on to the throw as he and Anselmo became entangled in the dirt. Anselmo was called out and then ejected when he rose from the ground first and shoved the Nitros catcher away with a stiff forearm. like intensity, Chevrier said. like to play and want people to play hard. We needed to come back with energy in the last couple innings and we did. Nitros then used four hits to add two runs in the bottom of the seventh inning, but their rally was stunted by the Tigers turning a double play in the middle of those hits. fought back, Funaro, in his first year, said. it got a little chippy at the end. In a way that is good for Glendale baseball. They not going to give up and kowtow to anybody. 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