19 Year Old MINDRAY Medical Refuses "Premature Aging"

China EU International

After experiencing rapid development, Xu Hang, chairman of MINDRAY healthcare (NYSE. MR), seems to be thinking a little bit ahead: what is the stage of MINDRAY and where to go next?

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According to the theory of enterprise growth cycle, enterprises in this period are full of vigor and vitality, but they are prone to lack of innovation and planning for the future. Meanwhile, the flexibility of the organization will be challenged.

How to give full play to the characteristics of the enterprises in the life cycle stage, find the corresponding development strategies, and achieve the sustainable development of enterprises has become a problem before Xu hang.

Adolescent characteristics

The enterprise life cycle theory holds that every enterprise will experience infancy, school step, puberty, full year, stable period, aristocracy, aging period and death period.

The purpose of this theoretical research is to find a specific organizational structure suitable for enterprises at different stages, so as to maintain the ability of enterprise development and extend the life cycle of enterprises.

Data show that in Japan and Europe,

In the 19 years since its establishment, MINDRAY has become a member of "3%".

As one of the innovative leaders of high-tech medical equipment R & D manufacturers and medical diagnostic equipment, MINDRAY is well known internationally and domestically.

In 2006, MINDRAY medical, as China's first medical equipment company, was successfully listed on the New York stock exchange.

Data show that from 2003 to 2009, the compound annual growth rate of MINDRAY's sales revenue was 49%, and the net profit compound annual growth rate was 51%.

In the same industry, the growth rate has never been a problem for Xu hang to worry about.

Last year, MINDRAY medical completed the total sales of $634 million, this year is expected to be $700 million, while the domestic industry ranked second enterprises, sales revenue is only 200 million yuan, compared from the domestic market, the scale is not a problem.

Rapid growth is the best explanation for puberty enterprises, but how can we maintain the vitality of adolescence for a long time?

Enterprise positioning and value

"When starting a business, the vision is very clear. At that time, small businesses were like kids catching the ball in front of them. But now companies are bigger and there are a lot of things to catch. Sometimes they do not see clearly," Xu said. "Therefore, we must clarify the positioning of enterprises. This is very important. We have always been an influential enterprise in the industry and become the leader of the industry."

The great test of adolescence on enterprises is the contradiction in all aspects. The conflicts between enterprise management and board of directors, old staff and new employees will become the main problems of enterprises in this period. The clear understanding of value and location can avoid conflict to a large extent.

Since the foundation of MINDRAY, the value of MINDRAY is to reduce the price of medical equipment while improving quality.

Xuhang declassified that it is precisely the insistence on this positioning that MINDRAY medical care can enter almost one field in the country and become the leader in this field within three years.

Now, MINDRAY medical is bringing the medical and electronic products with balanced price and performance to every corner of the world. In 2009, MINDRAY accounted for 46% of the total revenue of the MINDRAY, 26% of the developed countries, and 22% of the emerging countries. It should be said that the internationalization of the business has been achieved.

"From the life cycle, an enterprise does not care how long it can grow. The key lies in the long run of enterprises.

In this process, it depends on whether there is a long gene in the enterprise. This gene is a technology for MINDRAY to guarantee quality and reduce price at the same time.

When the enterprise is in an upward period, it is very smooth. Once the period of rise is over, it will not stop the decline of the enterprises. Therefore, we need to use "genes" to extend the puberty and the prime of life.

Xu hang analysis.

Make full product line

"Enterprises must grow if they do not enter recession, but each stage needs to grow at different speed."

In the fast growing puberty, Xuhang and his team chose the "accelerated" way to build the whole product line, which means that it will compete with GE, SIEMENS and PHILPS.

At present, MINDRAY's business involves three parts: monitoring, blood analysis and ultrasound, and the process of competition with pnational giants, so that Xuhang summed up 3 experiences: first, speed up product updates; second, under the new framework, the upgrading of products tends to be software, and software continues to upgrade instead of hardware upgrading; third, vertical integration, production and maintenance of equipment must be coordinated.

When it comes to the aspirations of adolescence, Xu Hang is still inseparable from the product itself. He said: "to become an influential company in the world, we must expand our products and our product lines are still very limited."

MINDRAY has renamed the original monitor as the patient life information system and life support system. The ultrasound business has been renamed as medical imaging, thus expanding more products in every field.

For Xu hang, the product line is unable to expand at the moment, MINDRAY medical also found a remedial measure, that is to take the "Tian Ji race" strategy.

"At the same price, we always have to do better than others, and every piece is better than others, so that we can win, and we need to develop with new technology. The better the new representatives, the cheaper the new representatives."

Why is MINDRAY's product cheaper? Xuhang said that in addition to the low cost of human resources, MINDRAY's application of retechnology is more important.

He cited his Moore's law to quote his views.

According to the law, the density of IC is doubled, the performance is doubled, and the price is reduced by half every 18 months.

The application of the updated technology to products and the speed of "technology pformation" are important means for MINDRAY to compete with its strong competitors.