Siemens Medical Solutions Ct Product Strategy Study

The serious financial crisis occurred in the second half of 2008. Many people do not know how to deal with it. But, just staying and nothing to do will cause even worse conditions. The enterprises should be initiative, and do their best to find the good way to survive themselves.Because the customers of healthcare industry are hospitals and medical institutions, and patient volume will not be reduced even with the economic recession, normally the impact from the financial crisis to healthcare industry should be limited. But, this time, it is totally different. The financial crisis is destroying the world's No.1 biggest medical market - U.S.A. (43%). The huge deficit and the financial crisis make the U.S. government trying to reduce the expenditures in healthcare insurance (the expense in this field is about 17% of the annual GDP). And the main concentration of the reduction in healthcare area is related to patients' reimbursement to medical imaging device (CT is the most popular medical imaging device in the hospitals). The market of Europe and Japan got corrupt as well. The only big potential is China market. But, still, the loss from U.S. market can not be fully filled by the earning from China market. Therefore, a new updated product strategy will be the first priority of Siemens CT, so as to find the best solution to fight against the financial crisis.I'm the leader in Siemens CT to take care of middle-low end CT products. And, I was involved on this study of the new product strategy. I referred to the theories of enterprise strategy management and marketing management for the composing of this paper.First, the marketing investigation and data collection have been done for this study. Based on that, the external environmental analysis and internal strategic resource competency analysis were performed. Macro-environment analysis and micro-environment analysis are the two main portions of the external environmental analysis. Then, the micro-environment analysis, market segmentation and internal strategic resource competency analysis are followed. The methods of the analysis are: PEST analysis, BCG Matrix, SWOT analysis, industry lifecycle analysis, "5-forces" model, etc...By the phase of market segmentation, we clearly realized that the market of high-end has got shrunk tremendously. While, the middle-end market got unexpected expand. Then, the targeting market got defined at middle segment. And, by product positioning, the core product strategy was deployed. The follow-up tactics got defined as well.We are evaluating the effectiveness of this new product strategy. Because it has been kicked off, still need to take time to get achievements. By now, at least, we can say, it is running pretty well.