Innovative Foreign Product as Business Opportunity in the US
United States has been credited with many innovations both in products and services. It is known for its technological and medical inventions that have contributed to upgrade standard of living and have provided immense service to mankind. However some innovative ideas that did not originate in US have considerable potential both as business opportunity and philanthropic initiative if imported and implemented in America. One of such inventions is the ‘Jaipur Foot’ – a prosthetic leg that was invented in India and has benefitted many since then.
Prosthetic limbs are available in America too but what makes the Indian innovation unique and impressive is it’s low cost, affordable by the poorer sections of society. (Macke, et al; 1) state that many people lose their limbs because of disease, accidents and traumas but cannot afford artificial limbs because of their high cost and complexity. In US, a prosthetic limb costs up to $8000, where as the Indian innovation costs $ 30 approximately which has made it affordable to the impoverished sections also and has given an opportunity to the afflicted to return to their livelihoods.
HISTORICAL CONTEXT
The history of artificial limbs can be traced back to the origin of medical science when artificial limbs in form of simple wooden crutches supported by leather cups and cloth rags to soften the prosthesis were used. (Macke, et al; 5) claim that these limbs were quite functional and incorporated many features of the modern prosthetics. The first modern prosthetic leg above the knee was designed by Dr. Pares in 1561. Further developments in the field of prosthesis gained momentum during the American war of independence and the ensuing civil wars for soldiers who lost their legs in the war.
Development of Jaipur Foot. The American version of the prosthetic leg was designed primarily for war victims and amputees who were not required to work squatting or bending down or needed walking barefoot which produced pressure on the lower leg. Hence American inventions did not focus on the weight of the prosthetic; as a result they were heavy and uncomfortable especially in Indian conditions where postures of the amputees while working played an important role in prosthesis design. This is one of the reasons why the Jaipur foot originated in India and not in the US. Although research in USA on prosthesis gave way to development of plastics as replacement of wooden stubs and other lighter components in upper prosthetic legs, it failed to develop an alternative for the below knee prosthesis which could bear weight, facilitate locomotion and maintain equilibrium. The Jaipur foot which was designed by an artisan, Mr. Ram Chandra Sharma was made of vulcanized rubber which incorporated the above features. The medical aspects of the prosthetic legs were addressed in consultation with Dr. P.K. Sethi, a practicing orthopedic surgeon.
Another reason that was significant in the invention of the Jaipur Foot was its cost. Indian amputees were mostly poor industrial or agricultural laborers who lost their livelihoods in absence of the lower limbs and could not afford the expensive and imported artificial limbs. Ram Chandra Sharma wanted to restore the livelihood of these poor handicapped people using affordable means. Since these conditions were not a consideration in the US, research in the field of prosthetics was not along these lines. More over the affected war veterans often received and replaced the prosthetic limbs free of cost from Government aid; expenses were not a prime factor in the design and development of prosthetic legs. These are probably the reasons why a low cost, flexible and light artificial limb was not developed in the United States.
BUSINESS SCOPE OF THE JAIPUR FOOT IN THE US
There are several reasons to believe that a huge market exists for a low cost prosthetic limb in the world including the United States. According to Macke, et al (5) the health statistics in 1996 reported that there were over 4 million amputees in US alone with 200000 amputees every year out of which 70% were lower limb amputees. A world health report published in 1998 predicted that amputees from diabetes alone would double globally from 143 million in 1997 to 300 million in 2025. Since cost of prosthetic limbs is quite high in US and insurance cover not adequate, 50% of the affected people go without proper medical prosthetic care. The following merits make the Jaipur Foot a preferable product in the US market for prosthetics.
Affordability. Analyzing the data presented above, the business opportunity of importing and supplying prosthetic foot appears to be immense. The data implies that only half of the handicapped Americans can afford the expensive prosthetic care available in the country. A cheaper substitute which is equally effective will be appreciated in the market thus presenting a good business opportunity.
Flexibility. Secondly the SACH foot developed in US, does not allow a variety of postures possible with the Jaipur foot such as squatting, sitting cross legged, walking on uneven surfaces, climbing trees, walking barefoot and working in fields. Compared to two well known prosthetics in the developed countries – Vari Flex and True Step, the Jaipur foot is cheaper and has the technical features that supports above mentioned motions. These features further increase the business potential of Jaipur foot which is a cheaper and more flexible alternative of the Western Versions.
Ease of fitting. The nonprofit society known as Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS) has developed a system which makes it possible for the amputees to access the facilities for fitting the prosthetic foot easily. The Society attends to the pre and post fitting care of the patients. The process for admission, fitting and care of the patients inclusive of attending to their financial, boarding and lodging needs assumes a very holistic approach. If this system can be implemented in the US, it will benefit many of the sufferers. The number of patients benefitted by the service will turn the economies of scales in its favor.
Global market. At present Variflex is the second largest selling prosthetic foot manufactured by Ossur based in Iceland (Macke, et al; 18) which supplies the European and North American Market. However compared to Jaipur foot its administrative, marketing and R&D expenses are relatively high. Whereas 90% of Jaipur foot production consists of manufacturing and fitting expenses and only 7% towards administrative and overheads, Ossur spent a significant 50% in administrative and other expenses and 50% in production. This data reflects the potential of creating a global market for the Jaipur foot. An American firm can import the Jaipur foot and market it throughout the world at a relatively lower price especially in war affected developing countries like Africa, Vietnam, Afghanistan and Cambodia where statistics reveal that many people are victimized by landmines and lose their limbs.
Corporate Social Responsibility. Both Private and public organizations in the US provide assistance to war veterans suffering from physical and psychological aftermaths of war as a CSR initiative. Providing prosthetic foot to the handicapped veterans can be part of this policy. A firm which imports and markets the Jaipur foot can offer a deal to these firms as its marketing strategy.
PROFITABILITY OF BRINGING IN THE INNOVATION TO UNITED STATES
There a number of ways in which importing the technology and marketing the Jaipur Foot can bring in revenues to an American Firm. Some of the methods that can add to the profitability of the venture are discussed below
Collaboration. A collaboration or joint venture for accessing the technology and fitting methodology can be established with BMVSS. From the previous section it can be derived that the substantial part of cost of the Jaipur foot is directed at production and fitting the prosthesis and only a marginal sum is incurred as administrative and overheads. This fact can be used in favor for American firms entering into collaboration. With its other expenses at minimum, maximum economies of scales can be achieved.
Sales Promotion. The Jaipur foot can be promoted as a more flexible, durable and cheaper alternative for prosthetic lower limbs available in US with facilities for fitting and pre and post fitting care. This will attract not only amputees but also companies that market prosthetic limbs. Government and other organizations that provide free of cost prosthetic care to war veterans and other affected people can also benefit from procurement of cheaper options without compromising on quality. A well planned promotional strategy will prepare the ground for introducing the innovation in America resulting in greater turn over and profits.
Internationalization of distribution. In the present economic environment, reaching international consumers is a very effective strategy to increase sales. US firms can act as suppliers of prosthetic foot to international distribution or establish its own distribution outlets all through the world. It is expected that with its numerous merits, the Jaipur foot will be received favorably by consumers and add to the profitability of the firm. Additional support as fitting and care facilities would further accentuate sales.
Training the Personnel. Apart from importing technology through collaboration, American firms in the field of prosthetics can send its personnel for training in fitting and post operative care of patients. This will contribute towards gaining customer satisfaction and add to the credibility of the firm thus bringing in more sales. BMVSS offers training to collaboration personnel in its Jaipur facility for up to six months. This facility can be availed to get the required expertise in fitting the prosthesis and providing health care and other assistance to the amputees.
Launching a Website. In the present world of E- commerce and online transactions, American firms can gain a competitive advantage by launching a website that provides all the information related to prosthetic fitting and care to prospective clients. The website will contain information about all centers, including videos demonstrating product and its fitting process and post fitting care. This would go a long way in securing patient confidence. Other online processes like appointments, payments and consultation can be facilitated to assist patients and expand business.
Tie ups with orthopedic clinics. The firm can form tie ups with Orthopedic surgeons, health care services and other surgical and medical organizations to promote and supply prosthetic limbs. It can facilitate training programs for health care workers for fitting and further spread its business activities to serve a range of customers.
Organizing Camps. The firm can organize camps in different parts of the world in association with military services especially in war affected areas where many people are crippled by landmines, shrapnel and bombings and provide prosthetic care to these victims.
CONCLUSION
Sources Cited
Macke, Scott, Ruchi Misra, and Ajay Sharma. "Jaipur foot: challenging convention." Michigan Business School case (2003).
