Market And Economic Benefit Evaluation Of YP Co., LTD DT Project

As the development economic and the improvement of people’s living standard inour society, people increasingly high demand for medical services, market capacity ofmedical device is also growing. Enterprises of medical device industry in China arenumerous, but the size of them small and industry concentration is low. Relatively,competitive foreign medical device companies are high-end, and the medical devicemarket in China is mainly occupied by the transnational enterprises, rendering amonopoly situation. While our local medical device companies are mainly survive inthe low-end market, and the market share in high-end market is very limited. Althoughthe strength of our medical device industry is relatively weak than that the internationalmultinational groups, Chinese medical device market has a greater capacity, and morerapid development trend, which is relative to the rapid development of the internationalmedical devices industry, there are still a relatively high rate of development. Sincereform and opening up, China’s national economy and people’s living standard havebeen greatly improved, and domestic demand for medical device is also growing.China’s domestic medical level are assigned low, but we believe that Chinese medicaldevice market capacity will continue high growing with high speed, along with thesocial development of these configurations will be constantly updated.Medical device market prospects at home and abroad are amazing optimistic to us,in particular the domestic medical equipment market with a bright future. In China,multinational group for medical devices industry more competitive, but our companiesare still keeping a rapid development in this macro-market background, for example theYP company are proposing their DT project. This article brief introduce YP companyand DT project, and notes that YP company can operate DT project with two clearadvantages through the analysis. They are internal direct sales channels and guaranteeof product quality and technology.In the market analysis of DT project, the research methods of this article maincontain products analysis, supply analysis, demand analysis, market structure analysis and market environment analysis. Conclusions came corresponding analysis summaryof this five aspects. And then, we try to get some specific implementationrecommendations for YP company to conduct DT project. Firstly, YP company shouldfurther strengthen the strategy of products differences. Secondly, YP should full play itsdirect sales advantage. Thirdly, research and development and introduction of newtechnology should be strengthened. Fourthly, distribution of high end and low endproducts should be deployed more reasonable.In the economic benefits evaluation of DT project, this article established specificprinciples and pursuant of economic benefits evaluation indicators system under DTproject first. And this evaluation indicators system includes payback period, net presentvalue, investment rate of return and internal rate of return considering specific situationof DT project. The author further analysis using these indicators and draw a conclusionthat DT project will get a good economic benefits with low risk level. So the project canaccepted and conducted. On this basis, this paper focuses on break-even analysis andsensitivity analysis. In the break-even analysis of this article, yield, five break-evenpoints of production capacity utilization rate, sales price, the variable cost and salesrevenue are calculated. The results turned out to be that the resistance ability touncertainty conclusion of adverse changes is strong. In the sensitivity analysis of thisarticle, the author mainly analysis investment rate of return, net present value to thesensitivity of three uncertainty factors---project yield, products cost and products price.And the conclusion is that investment rate of return, net present value to project yield isless sensitive and to products cost and products price is more sensitive. So, YP companyshould given enough of attention to products cost and products price so that risk levelcan keep at low level as far as possible when running DT project.