As the medical device
industry faces some significant market threats these days, like
slow-growing market and strong regulatory system, it became necessary to be
vigilant for signs and understand when changes are needed. Executives should
pay attention to at least four signs that indicate that their companies need to
adapt. Frost & Sullivan's Venkat Rajan,
principal analyst, who leads the firm's analysis of the medical device sector,
discusses what those are.
The first
sign is “Utter Lack of Product Differentiation” which means that customers see
medical device products as commodities and it leads to customers’ indifference
to the product. The second sign is “Profit Model Under Pressure”, this means
that the profit margin declines year by year and to assure its market
presence companies are facing significant internal cost-cutting. The third sign
is “Market Disruptors on the Horizon”, this sign has to do with fast technology
development which means that a product becomes obsolete quickly and, sometimes,
its substitute proves to be better, faster and cheaper. Finally, the fourth
sign is “Internal Infrastructure Deteriorating”, this means that the company’s
workforce usually is slow to adapt or innovate and its strategy normally is
focused on maintaining its market presence instead of expansion.
