Market Entry Assessment : Avoiding Cognitive Biases that Undermine Market Entry Decisions in the Medical Devices Market
US Medical Devices Industry Overview
Generating more than $180 billion in revenues, the US medical devices industry is one of the largest, globally. Key developments in the US medical devices industry include a surge in M&As, abolishment of MedTech tax, and the digital revolution. In the US alone, there are 6,500+ medical devices companies that are mostly small or medium-sized enterprises (SME’s). However, more than 80% of such medical devices companies employ few employees and generate little or no sales revenue. Though medical devices companies are located throughout the US, they are mainly concentrated in regions known for other high-tech businesses, such as microelectronics and biotechnology. The states with the highest number of medical devices companies include Florida, New York, California, Michigan, Massachusetts, Illinois, and Minnesota.
The US medical devices companies are highly regarded worldwide for their innovations and high tech product offerings. Investment in medical device R&D has more than doubled over the past few years and is expected to do so in the future, bringing in new product development and market expansion opportunities. The US also holds a competitive advantage in several industries that the medical devices industry relies upon, including microelectronics, telecommunications, instrumentation, biotechnology, and software development. Recent collaborations within this sector have resulted in several scientific advances in several fields including stent technologies, biomarkers, medically implantable electronic devices, and neurostimulators. Fueled by innovation and the ongoing quests for better diagnosis, the future of the medical device industry is poised to witness an accelerating growth rate.
We’re sure you have your eye on a new market segment. But are you certain your products or services are the perfect fit? Request a Free Proposal today!
Market Entry Strategy for Medical Devices Companies
About the Client
The client is a leading player in the US medical devices industry. Headquartered in Illinois, the American medical devices industry player is well-known for developing innovative medical devices and drugs in their broad areas of expertise. As a leading multinational medical devices manufacturer, they employ over 80,000 employees in over 75 countries. In early 2018, the client reported a solid increase of 5% in their sales revenue, which they contributed to their ‘strategic, disciplined execution and focus on operational excellence, which they wanted to build on in 2019.
The Business Challenge
For many medical devices companies, the problem lies in establishing their presence in a new market segment while tackling the current competition in the market. The client found themselves stuck in a similar situation and decided to collaborate with Infiniti Research to develop a precise market entry strategy.
The firm, who is a well-known company in the medical devices industry, was looking at devising effective strategies to expand their reach by entering key target markets. They wanted to develop an effective route-to-market strategy and better market their medical products and services to potential customers. The medical devices manufacturer was facing predicaments in finding the right direction of development; as a result, they wanted to maximize their profits by minimizing risks in investment decisions. By engaging in a market entry assessment, the client wanted to develop a detailed report on the market entry barriers, new product development opportunities, threats, and competition in the medical devices market.
In the face of increasing pressures, to innovate and reduce costs, medical devices companies are on the constant lookout to find alternative ways to increase efficiencies and tackle challenges involved in market entry, including the one listed below:
Problem Statement 1
The medical devices manufacturer was facing predicaments in entering niche market segments and allocating their resources to target the price-sensitive customers to profitably and effectively scale their business.
Problem Statement 2
With the recent advancements in the field of MedTech, the client was finding it very challenging to enter a new market and distinguish themselves in terms of their product offerings.
Problem Statement 3
The medical devices industry player wanted to develop an appropriate market entry strategy that would help them transform their business processes from the ‘old ways’ to a new scalable and trackable business strategy that will help them propel forward.
Problem Statement 4
The client faced challenges in developing an effective route-to-market strategy in order to better market their medical products and services.
To help the medical devices industry client analyze the market they wished to enter, the market entry experts at Infiniti Research conducted a detailed market assessment.
Medical devices companies must select an appropriate market entry strategy depending on a number of factors, including:
- How the competitors view the foreign company’s product entering their market
- The global demand for medical devices
- The future growth demand for medical devices
- The available resources and their commitment to enter the new medical devices market segment along with the required time frame
To help the client tackle challenges, our experts adopted a comprehensive approach that helped the medical devices manufacturer to successfully gauge new business opportunities and drive profitability. The solutions offered were divided into the following four phases:
The initial phase mainly focused on conducting interviews and discussions with key stakeholders to analyze the market developments and key strategies adopted by market leaders. This was carried out with the help of a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the medical devices industry player understand the competitive scenario and adjust their strategies accordingly.
The second and most crucial phase of the engagement revolved around the development of a new business plan. This was a combination of strategic marketing initiatives, business development strategies, and business expansion strategies.
Based on the new business plan, our experts developed a market entry strategy to help the medical devices client effectively market their products in the new segment.
The final or the actual implementation phase of this market entry assessment revolved around the development of a precise market entry strategy to suit the needs of the client. The devised market entry strategy served as a blueprint that helped the client to expand their business scope. It was based on the details of the research findings and included detailed information on their business goals, budgets, major action items and timelines, and effective methods to monitor and evaluate their success on an ongoing basis.
Moreover, our market entry solution helped the medical devices industry player to discover new growth opportunities by assessing the market trends for every single route-to-revenue. Also, it enabled the client to enhance their current route-to-market strategy, to market their products and services in a more productive manner.
Why partner with Infiniti Research?
With a team of highly skilled market research professionals, we offer customized solutions that will help companies to magnify their competitive advantage by improving speed-to-market. Infiniti Research is a visionary in the field of market intelligence and market research and continues to set the bar for the most advanced and creative market assessment approaches. Our market intelligence solutions have been proven to deliver insight-driven outcomes at scale, to help businesses improve their business performance. The extensive ability of our in-house market intelligence experts has empowered us to offer a range of services including market assessments, market segmentation analysis, market entry advisory, industry risk assessment, and so on.
With over 15 years of experience in the field of market research, we have delivered over 10,000 market research projects for leading Fortune 500 companies across industries. Our research team comprises of 500+ market experts who hold regular discussions with clients to ensure all requirements and offer detailed insights to help them develop action plans and market strategies.
What are Market Entry Barriers?
Market entry barriers are the factors that prevent or act as major obstacles for a startup or a well-established firm that is looking to enter a specific market space. As a whole, they comprise of the five forces that determine the intensity of competition in a particular market segment, including the threats to market entry, the bargaining power of suppliers, the threat of substitute products/services, the bargaining power of suppliers, and the competitive forces.
Identifying and understanding the five competitive forces or the forces to market entry along with their underlying causes helps reveal the roots of an organization’s current profitability while offering the basic framework for anticipating and influencing competitive over time.
Researching a new market? Our market entry experts can help you understand the market landscape and devise effective market entry strategies, just like how they helped the medical devices manufacturer. Request a FREE proposal below.