Medical Device Innovation at the Base of the Pyramid

This chapter shows the prominent case of General Electric (GE) and its decision to enter the Indian medical device market. It highlights the innovations required within the organization – developing new ways of operating in order to develop an innovative and affordable medical device. The chapter discusses GE approach as an exemplar of effective base of the pyramid strategy from a theoretical perspective. It considers GE’s strategy to make healthcare affordable in India, by illustrating the case of MAC 400 – a breakthrough, innovative, portable electrocardiogram machine designed for rural areas. GE’s innovation strategies in the Indian healthcare sector – as exemplified in improving diagnostics of cardiovascular diseases – provide a vivid illustration of base-of-pyramid practices and their evolution over time. The Indian cardiovascular device market is at the nascent stage with suboptimal penetration. GE in India has been following a traditional organizational structure and profit and loss model like most multinational corporations.