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Case Study: Ge Healthcare in India: an (Ultra) Sound Strategy?

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Case Study: GE Healthcare In India: An (Ultra) Sound Strategy?

What are the basic facts?
GE Healthcare India, a joint venture between General Electric (GE) and the Indian multinational Wipro Ltd., had ended the 2005-2006 year with a significant rise in sales of 10% since last year. They were the market leader in the $77 million ultrasound machine market, beating its competitors, which included Siemens, Toshiba and Philips. The president and CEO of GE Healthcare India, V. Raja read the newspaper headlines which described how government officials in Hyderabad had been confiscating ultrasound machines that they suspected were being used illegally to determine the sex of unborn children. The article featured a poster for GE ultrasound machines, a police officer wrapping up an ultrasound machine and a pregnant belly (Wicks, 2014). As a result of these news articles, 102 clinics had their registrations suspended, police seized 112 ultrasound machines and three suppliers, including Wipro GE Healthcare had been accused of supplying machines to clinics without registering them with the government. This controversy could affect GE Healthcare India’s sales for the next fiscal year and its reputation.

What are the ethical issues?
The 2001 Indian census revealed that there were 927 girls to every 1000 boys, down from 945:1000 in 1991 and 962:1000 in 1981. By 2001, 14 districts had a ratio of less than 800:1000. A 2006 study confirmed, after analyzing data from more than 1.1 million Indian households, that approximately 10 million girls had been aborted in the 1980s and 1990s. In India, having a girl child was considered a burden and huge responsibility while having a son was a blessing. Boys continued the family name and were the breadwinners. On the other hand, girls had little or no education and her parents had to pay a huge amount of money (dowry) for her to get…...

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