Strategic Management Of GaleMed Corporation

Founded in 1986,GaleMed is the only medical equipment company in Asia with capabilities in manufacturing and marketing.It has since been actively involved in developing,manufacturing and marketing respiratory-care products,emergency care products and electronic scalpels.Presently,demand for medical-equipment is fairly strong in domestic market and abroad.And Chinese mainland market is also at the period of fast development.The market potential is so huge and attractive,however,the competition is keen at the same time.In order to satisfy the ever-increasing demand in the mainland market, GaleMed invested in two subsidiary-companies,i.e.,GaleMed Xiamen Co.,Ltd.and GaleMed Xiamen Sales Co.,Ltd.,in Amoy Export Processing Zone in May of 2006. GaleMed Xiamen Co.,Ltd specializes in developing and manufacturing of respiratory-care products,and GaleMed Xiamen Sales Co.,Ltd.specializes in marketing of respiratory-care products in the mainland.But they are now facing a lot of problems and challenges..This paper has a deep study in the strategic management of GaleMed with Roger A.Formisano's strategic management theory and with a variety of strategic analytical tools.It also designs a feasible strategic management proposal that fit for the status-quo of GaleMed.The paper recommends that GaleMed should adopt growth strategy of vertical and horizontal integration and make full use of its strengths and opporttmities to focus its resources on the niche field of respiratory-care,and implement overall cost leadership strategy to improve its integrated capabilities in R&D,manufacturing, marketing,finance and HR and to optimize in resources,capabilities,corporate organization and corporate culture.Thus GaleMed will form its core competence and keep the sustainable competitive advantage,and become the "hidden champion" in the respiratory-care field finally.