WM Foam Dressing Project Business Plan

The knowledge of wound healing was developed along with human evolution. In theancient times, Human knew to use leaf and honey to treat wound. In1962, PH.D, Winterpointed out that moist environment is more helpful for wound healing than dry environment.After one year, Hinman and Maibach proved in test. They consolidate the foundation ofwound healing theory in moist.Currently most foam dressing, as one of advanced wound dressing, was consumed indeveloped countries. The consumption in US, Europe and Japan accounts for around90%ofall because the medical level is high and the theory of wound healing in wet is accepted.Secondly, the aging population causes high frequency of chronic wound. In1990’s, the theoryof wound healing in wet environment and foam dressing were introduced to China, along withpopulation structure tended to age, foam dressing was accepted gradually.WM is a traditional wound dressing manufacturer listed in NASDAQ and products arefor both China domestic and overseas market. In order to fully use resource and growbusiness, WM decide to develop foam dressing.In this article, the author analyses macro environment of foam dressing with PEST andindustrial situation with Porter five competitive forces. Meanwhile, analyses the advantageand disadvantage of WM with SWOT then concludes that strict medical management of state,continuous economic growth, aging population and manufacturing technology provide a goodexternal environment; Current rapid growth in China medical industry is useful for foamdressing; WM internal resource and advantage will promote foam dressing development.Based on above, growth strategy was selected.In the article, the author segments the foam dressing market, position and target themarket with STP theory. Beijing, Shanghai, Guangzhou and Shenzhen are selected as theprimary area to launch foam dressing and target at chronic wound patients. In the article,product strategy, price strategy, place strategy and promotion were established.Based on the income and expenditure of foam dressing project, the plan of investmentand cash flow for next5years was figured out. Investment decision indicator was analyzedwith NPV (Net Present Value), IRR (internal rate of return) and MNPV (Modified Net PresentValue) and concludes all financial indicators are better than average of medical industry. Thedynamic recovery period is less than expected5years.The sales volume and price were concluded as key factors by analysis of single factor sensitivity. Meanwhile project risks including market risk, technical and production risk,policy risk and management risk was analyzed and solutions were provided.The article provides detailed and reliable data and solution to WM by marketing andfinancial analysis.