2.0 The challenges
“Reverse innovation isn’t optional; it’s oxygen” according to the Chairman of the General Electric’s Jeff Immelt (Harvard business review, 2009). As an innovator of the ideas of the reverse innovation, he truly believes that in the current business environment, reverse innovation must be seen in a method to move forward for every organizations crossways the global, in order in capitalizing on the current international economic situation. As the world is progressing into the 21st century, there are numerous major challenges that the organizations is facing in adopting the reverse innovation in their strategy.
2.1 Infrastructure gap
In a world which is developed, global businesses frequently takes everything for a granted in the infrastructure which is in the place. As stated by Govindarajan and Trimble “even though it is actually natural for the people in assuming that the inordinate amount of each reliable infrastructure in rich countries promotes new product development, in which in the developing market, where there are lack of infrastructure and also circumstances might also in fact prove advantageous” (Mari Terrio, 2014). In the emerging economies, businesses should not make any sort assumptions and plan a new products in accommodating in the not the same environment. As for General Electric, they have made numerous bounds and leaps in the new products development in where they had took the infrastructure in the emerging economies into consideration.
General Electric have developed two new key products by using the reverse innovation strategy which are the handheld electrocardiogram devices as well PC- based ultrasound machines (Harvard business review, 2009). Both of the products are geared in the direction of emerging the markets in where the current infrastructure are unable in providing the appropriate alternatives. This products will actually advance in reaching parts of the rural emerging markets in which the traditional equipment’s will take numerous years in reaching. By understanding the challenges of the infrastructure needs, GE have played out very good in the emerging markets.
2.0 The challenges