Genesys Biolabs: Comprehensive Market Analysis and Report for Jordan

This report presents a comprehensive market analysis for Genesys Biolabs, focusing on its potential entry into the Jordanian market with its lung cancer detection system, "OneTest". The analysis incorporates both external and internal factors to assess the viability of the venture. External analysis employs PESTLE and Porter's Five Forces models to evaluate political, economic, social, technological, environmental, and legal factors, as well as competitive forces within the Jordanian healthcare industry. Internal analysis utilizes VRIO and value chain analysis to identify Genesys Biolabs' core competencies, resources, and competitive advantages, including system knowledge, sales and marketing capabilities, skilled employees, and patents. The report examines industry trends, key drivers, and the attractiveness of the healthcare market in Jordan, concluding with strategic recommendations for successful market entry. The report also explores the bargaining power of suppliers and buyers, threats from new entrants and substitutes, and competitive rivalry within the Jordanian healthcare sector.

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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competition as not many companies offer a system for early detection of lung cancer
which makes it a weak force. The comprehensive public health service has no cancer
screening coverage for free like in the case of free treatment. The average income of most
Jordaians is limited to low. The ministry of health has decided in coordination with the
lab owners union the price list of all lab tests.
 Threat of new entrants – Although there is a threat of new companies entering the
market once the system is launched (Hernández and Garcia, 2018). The new entrants can
enter the market by offering similar system at affordable rates.
 Threat of substitutes – There is a threat of the system being getting substituted as a
competitive firm can replace this particular system by introducing a new and improved
technology or algorithms.
 Competitive rivalry – This is an external force wherein there are chances that the
Jordanian government policies as well as regulations dictate the level of competition in
the healthcare industry which can impact the operations of the firm negatively in the long
term.
2.3 Power in the Industry
The analysis done above shows that the healthcare industry is a powerful industry with
various internal as well as external forces acting on it. In context to Genesys Biolabs, the
bargaining power of suppliers is a high force as there are a lot of suppliers in the region where
the company is planning to launch its operations. Thus, all the factors that are stated above affect
the operations of the company either positively or negatively.
2.4 Industry attractiveness
According to the external analysis conducted, it can be seen that the healthcare industry is
attractive and investors can invest in the same. Also, there is an increased demand of solutions to
detect cancer. Thus, OneTest will help people of the region to detect lung cancer at an early
stage. However, the power of suppliers has to be considered important as it can affect the
operations of the company and thus reduce the profitability in the region.
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3.0 Internal Analysis of the firm
3.1 Core Competencies and Skills
OneTest has many competencies like the population that was studied for the test was a
healthy test which does not happen in most cases. The biomarkers are already being used by
many clinical labs on a routinely basis worldwide.
3.2 VRIO Analysis
Resources Valuable Rare Inimitable Organised
System knowledge Yes - - -
Sales and Marketing capabilities Yes Yes - -
Employees Yes Yes Yes -
Patents Yes Yes Yes Yes
Valuable – The different valuable resources for Genesys Biolabs are - System knowledge : System Knowledge among employees is valuable as this will help
the company in providing appropriate knowledge to the customers and thus attract them
(Lee and et. al., 2017). Sales and Marketing capabilities : This resource will help the company in increasing its
sales, profitability as well as share in the market.
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 Employees : Employees are valuable as they help the company in achieving its goals and
targets.
 Patents : Patents are valuable as they help in creating a goodwill of the company in the
market.
Rare – Resources like system knowledge is not rare for Genesys Biolabs as there are other firms
who also have the knowledge of how the system operates. Sales and Marketing capabilities : The respective company plans and formulates its
marketing strategies according to the different products they launch in the market and not
use same old techniques (Beretta, Stucki and Hellweg, 2017). Employees : Genesys Biolabs has employees that are committed and loyal to it and are
also highly skilled which makes them rare.
 Patents : The respective company has patents that are specific to its products and the
technology it uses.
Inimitable – Resources like system knowledge and marketing and sales capabilities can be
imitated by any competitor. Some inimitable resources are as follows - Employees : Employees are considered inimitable because they skills that are possessed
by the employees of Genesys Biolabs might not necessarily be present in the employees
of other companies.
 Patents : Patents have the nature of not being getting copied or imitated by anyone.
Organised – System knowledge, Sales and marketing capabilities and employees do not fall in
category as they don't require to be organised constantly. Sources under this category are -
 Patents : Patents need to be renewed and organised from time to time so that competitors
do not copy anything.
Value chain analysis
Primary activities -
These are the most important activities within an organisation and include inbound
Logistics and Operations wherein buyers will select the suppliers from whom the raw material to
develop the system will be purchased (Riska, 2017). Also, Genesys Biolabs has operations in
different countries and there are numerous clinical labs that use biomarkers routinely. Outbound
Logistics and Marketing and Sales is where the company has a large distribution system which
makes it easier for it supply its products in different parts of the world. Also, the company
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markets itself and its products through various offline as well as online channels and also sells
them with big retailers and also includes service.
Support activities
These are the activities that support the primary activities. Infrastructure includes the
various departments within the company that keeps the company operational. The different
departments form the infrastructure of the company that provides services(Laugesen, 2016).
Human resource management is one of the most important activities in an organisation and
includes activities like hiring, selecting, planning, appraisal etc. They also include procurement
and technology development.
3.3 Benchmarking
The company can hire a supplier which will provide the materials that is needed by it in
order to conduct the test. This way the company will be able to offer high quality equipment to
conduct the test and thus detect cancer early.
3.4 Distinctiveness
Having a differentiated supplier for all its supplies will be beneficial as it will provide a
competitive advantage. But since the company is launching in the Jordian market for the first
time and has no expertise, it is most likely to face extensive competition while launching the
product.
3.5 Competitive Advantage
The analysis of the competencies of Genesys Biolabs show that they will provide an edge
to the company in Jordan when it launches OneTest, a test to detect lung cancer early. However,
there will be cases when the company faces a lot of competition from other brands in the market
as well as new entrants who will have local expertise and a better knowledge of the needs of the
customers.
CONCLUSION
From the above report, it can be concluded that there are different factors that drive
healthcare like high levels of disposable incomes as well as increased awareness among people.
The various models and frameworks that were applied in the report showed that the medical
sector in the healthcare industry has transformed greatly over the years. The bargaining power of
the suppliers was a strong force and should be addressed by formulating appropriate strategies.
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From the internal analysis, it can be concluded that the respective company has the competitive
advantage as it is launching a new and innovative system in the market.
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REFERENCES
Books & Journals
Beretta, C., Stucki, M. and Hellweg, S., 2017. Environmental impacts and hotspots of food
losses: value chain analysis of Swiss food consumption. Environmental science &
technology. 51(19). pp.11165-11173.
Harding, S., 2017. MBA management models. Routledge.
Hernández, J. G. V. and Garcia, F. C., 2018. The link between a firm´ s internal characteristics
and performance: GPTW & VRIO dimension analysis. Revista de Administração IMED.
8(2). pp.222-235.
Laugesen, M., 2016. Fixing medical prices. Harvard University Press.
Lee, K. and et. al., 2017. Exploring suitable technology for Small and Medium-Sized Enterprises
(SMEs) based on a hidden Markov model using patent information and value chain
analysis. Sustainability. 9(7). p.1100.
Moghavvemi, S. and et. al., 2017. Connecting with prospective medical tourists online: A cross-
sectional analysis of private hospital websites promoting medical tourism in India,
Malaysia and Thailand. Tourism Management. 58. pp.154-163.
Riska, E., 2017. Medical careers and feminist agendas: American, Scandinavian and Russian
women physicians. Routledge.
Toro-Jarrín, M. A., Ponce-Jaramillo, I. E. and Güemes-Castorena, D., 2016. Methodology for the
of building process integration of Business Model Canvas and Technological Roadmap.
Technological Forecasting and Social Change. 110. pp.213-225.
Online
Top 8 Healthcare Trends in 2019. 2020. [Online]. Available through:
<https://blog.definitivehc.com/top-8-healthcare-trends-2019>.
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