Genesys Biolabs: External and Internal Analysis of the Medical Sector in Jordan

Individual Report
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Executive Summary
The report is based on Genesys Biolabs which is an American company operating in the
medical sector. The report contains both external as well as internal analyses of the industry as
well as the firm itself. Both these analyses helped in finding out the factors that will impact the
operations of the company in the Jordanian market. PESTLE analysis helped in finding out the
various factors like political, economic, technological factors etc. that can impact the launch of
the system in the country. Porter's 5 forces model helped in finding out the various forces that
can act on the company while it launches the system. VRIO and Value chain analysis are carried
out to analyse the internal factors that can affect the operations of the company.
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Table of Contents
1.0 INTRODUCTION.....................................................................................................................4
2.0 External Analysis of the Industry..............................................................................................4
2.1 Market Overview..............................................................................................................4
2.3 Power in the Industry........................................................................................................7
2.4 Industry attractiveness......................................................................................................7
3.0 Internal Analysis of the firm......................................................................................................8
3.1 Core Competencies and Skills..........................................................................................8
3.2 VRIO Analysis.................................................................................................................8
3.3 Benchmarking.................................................................................................................10
3.4 Distinctiveness...............................................................................................................10
3.5 Competitive Advantage..................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Appendices 1 - PESTEL................................................................................................................12
Appendices 2 - Porter’s Five Forces..............................................................................................17
Appendices 3 - Internal Analysis...................................................................................................19
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1.0 INTRODUCTION
The healthcare consists of organisations that offer medical services, manufacture
equipment that is used in providing services in those organisations and facilitate health care of
patients (Moghavvemi and et. al., 2017). The report is based on Genesys Biolabs, which is a
business unit of 20/20 GeneSystems , an American company having a system for screening
cancer types including those of the lung, liver, pancreas, and more. Lung cancer is considered as
the leading cancer killer in the world and the survival rate exceeds 90%. Thus, the respective
company has developed a test called “One Test” for the early detection of lung cancer in a
patient. The test kits that are employed by OneTest are used in several clinical labs across the
world on a daily basis. The company wants to open a branch in Jordan and market the system.
PESTLE and Porter's 5 forces models are used to carry out external analysis in the report. Also,
the core competencies of the company are identified through VRIN as well as value chain
analysis.
2.0 External Analysis of the Industry
2.1 Market Overview
The healthcare industry in Jordan comprises of two major sectors namely- the private
sector and the public or semi public sector. Both these sectors comprise of hospitals, clinics that
provide primary care, pharmacies etc. Primary care clinic offer quick access to medical care like
vaccinations, management services for chronic diseases, child and maternity care etc. These
operate in both rural as well as urban areas. Besides these two sectors, healthcare services are
also provided by the United Nations through various programs.
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2.2 Trends and Key Drivers
The medical industry is transforming greatly due to introduction of new technology and
the entry of new businesses in the industry. Technology has had a major impact as patients today
look out for organisations that have positive reviews and good satisfaction ratings provided by
customers (Top 8 Healthcare Trends in 2019, 2020). The medical industry is consolidating at an
exponential rate which some people think of as important and others think the opposite. One of
the most important trend of the industry is the use of artificial intelligence in various processes
like financial, organisational etc. Also, with the rise in the use of digital technology,
cybersecurity has become an important concern for organisations. Also, diagnostics have now
become an approach that is patient centric.
Key Drivers
The medical equipments as well as supplies is one of the key drivers of the rise in the
healthcare industry. Since hospitals and other healthcare units are increasing the scope of
activities within their systems, there is an increased need of high quality equipments to provide
services.
Trends
There have been a lot of advancements in the technology that is used in the health care
industry. Organisations in the healthcare industry now store patient records on cloud and there is
no need for physical maintenance of records. Also, consultation regarding medicines can now be
done online with the use of platforms like “Telemedicine”. Various Artificial Intelligence based
diagnosing devices are capable to detecting conditions like diabetes etc. accurately.
PESTLE Analysis
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 Political Factors – Jordan is regarded as one of the most stable countries in the Middle
East. Also an added advantage for the country is Arab states being aligned with the US
support (Harding, 2017). The government is also continually working in the direction of
improving the medical sector which means that the company will not face major
challenges while introducing the system in the country.
 Economic Factors – Economic crises in Jordan is a primary concern for Genesys
Biolabs as the country has been facing poor economic conditions for some years now.
The major challenges that the company might have to face include scarce supply of
water, complete reliability on oil imports as well as regional instability.
 Social Factors – Jordan's social condition is a mix of traditions as there are a lot of
people living from the different parts of the world. Poverty still prevails in the country.
Thus, the company should pay more attention on the social factors that prevail in the
country which will be helpful during the marketing of the system.
 Technological Factors – Jordan has digitally transformed over the years with high speed
connectivity between hospitals, schools and other agencies (Toro-Jarrín, Ponce-Jaramillo
and Güemes-Castorena, 2016). Thus, implementing the system in the hospitals as well as
its marketing process will be easier.
 Environmental Factors – Jordan is a country with various environment issues like low
rainfall, high temperature etc. Thus, there are chances that the system might not always
provide the accurate result as environment temperature can cause variations while the test
is being performed.
 Legal Factors – Jordan has its own legal structure and the respective company should
follow the rules and regulations. This can impact the overall process of introducing the
system as well as the marketing process.
Porter's 5 forces model
 Bargaining Power of Suppliers – There are a lot of suppliers present in Jordan but the
law has controlled the price for the service and the lab owners union also created a
mechanism for coordination which means that the bargaining power of the suppliers is
high.
 Bargaining Power of Buyers – Since Jordan is not a very population dense country, the
buyers don't have a strong power to bargain. Also, currently there is not a tough
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