| With the development of Chinese economy and society,people are paying more and more attention to the quality of living environment and individual health.The huge population base along with prominent aging problem leads to the rapid increasing demand for high-value medical consumables in clinical industry.The recent COVID-19 pandemic has shown that there are gaps between the large demand and insufficient manufacturing capacity of medical consumables in response to major public health emergencies.The strategic importance of the high-value medical consumables industry has become increasingly prominent.The "Reform Plan for Governing High-Value Medical Consumables" promulgated by the State Council in July 2019 officially opened the curtain on the management of high-value medical supplies,and had a huge impact on the high-value medical supplies industry.In recent years,the scale of China’s high-value medical consumables market has maintained a growth rate of around 20%,with the market size in 2018 of 104.6 billion RMB.Nowadays,foreign brands dominate the high-end market in Chinese high-value medical consumables industry and domestic brands are gradually catching up.The fast-expanding market and urgent need for accelerated domestic substitution have brought unprecedented opportunities to domestic high-value consumables production enterprises,and also brought new requirements,such as utilizing the development opportunity as soon as possible to narrow the gap with leading international brands,optimizing the industrial structure and upgrading the overall industry to accelerate the process of domestic substitution.The WEGO Group has transformed from a manufacturer mainly focusing on low-value medical consumables such as disposable syringe to a manufacturer that could provide system solution for entire medical device field.Besides,the high-value medical consumables business is playing an important role in driving sales and increasing profitability.This article takes the high-value medical consumables business of the WEGO Group as the research object,and analyzes the external environment of the high-value consumables business of the WEGO Group from the macro environment and the meso-environment level through PEST analysis and five-force model analysis tools.The main opportunities of the WEGO Group’s high-value consumables business are:encouraging medical device innovation and special approval procedures,grading diagnosis and treatment,medical insurance reform and domestic substitution,and other favorable policies;economic development provides strong support for industrial development,and active capital markets are providing financial support for horizontal and vertical mergers and acquisitions;the huge population base and the aging of the population provide a broad market space for industrial development;the ever-expanding patent pool and emerging technological methods inject vitality into the innovation of high-value consumables.The main threats are:the adverse effects of policies such as ration purchases,cancellation of markups and the two-vote system;the different technologies of high-value consumables in different subdivisions cause high barriers to entry across sectors,making it difficult to break the ceiling of subdivisions through endogenous development;The suppliers and components of raw materials have strong bargaining power;the market position of foreign giants is difficult to shake,their strengths are quite different,and domestic competitors have risen rapidly to seize market share.Then from the micro level,we analyze the resources and capabilities based on value chain theory of the internal environment of the WEGO Group’s high-value medical consumables business.The main strengths are:relatively rich product lines;extensive distribution network and good customer service relationships;good Brand influence;strong technology research and development capabilities;strong financial strength and stable financing platform.The main weakness are:the difficulty of research and development of key technologies,the core technology can not meet the needs of product development;the high-end market share is low;the overseas market is weak,the export value of high-value consumables is small;the strategic procurement platform,R&D platform,and sales platform have insufficient resource integration capabilities;redundancy of management,etc.This article analyzes the internal environment resources and capabilities of the WEGO Group’s high-value consumables business from the micro level,combining the quantified scoring results of the internal and external factor evaluation matrix to obtain its SWOT matrix,and conducting a feasibility analysis of each of Porter’s three general competitive strategies.In the end,it is concluded that the high-value medical consumables business of WEGO Group is suitable for choosing a differentiated competitive strategy.According to the actual situation of the enterprise,the implementation of the differentiation strategy is organized from three paths:product differentiation,service differentiation,and channel differentiation.Among them,product differentiation is the key to enterprises’ core competitiveness,which could realize in design,production and brand differentiation.Besides,service differentiation can be achieved through the cultivation of academic promotion capabilities and the creation of smart supply chain while differentiation in procurement channels can be achieved through establishing strategic cooperation relationships with suppliers and a strategic procurement platform,by extending to the downstream industry chain to achieve differentiation in sales channels,such as blood purification products layout hemodialysis center to achieve the "product+service" sales model..At last,managers could choose from four perspectives to ensure the implementation of the differentiated competition strategy,which include establishing a differentiated incentive system,a differentiated talent training system,improving the quality level with lean production,and strengthening capital operation. |
PDF Full Text Request