Shamir Optical Competition
Now Viewing Shamir Optical's competition in: Medical Supplies and Devices
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company sell to a large, or limited, number of customers? - Many specialized products have a limited market.
Does the company outsource its marketing and distribution? - Many small companies concentrate on production and outsource distribution.
Does the company have marketing arrangements with larger companies? - Small companies often turn to larger companies for distribution.
Does the company sell directly to large end-customers like hospitals, or does it use distributors? - Some companies sell to both wholesalers and large national accounts.
What is the company’s market share within the particular segment where it competes? - While the market is only slightly concentrated, some companies may dominate a particular type of device.
Does the company compete against similar products with different price/performance characteristics? - The cost-benefit ratio of devices is becoming a greater concern for large buyers.
How does the company promote its products? - Even small manufacturers of medical devices market products through a combination of direct sales and sales representatives. Large distributors handle mainly well-known products that can be sold in quantity.
Have cost-containment measures from government and third-party payers affected the company? - Third-party payers like Medicare, Medicaid, MCOs, and commercial insurance companies determine the cost reimbursement levels for medical supplies and devices doctors and hospitals use.
Competitive Landscape
Demand is driven by population demographics and advances in medical knowledge and technology. The profitability of individual companies depends on the ability to develop superior products. Large companies have economies of scale in manufacturing and R&D. Small companies can compete successfully by specializing in a particular market segment, or through technical innovation.
Business Challenges
CRITICAL ISSUES
Dependence on Regulators - All new medical devices require approval from the FDA to be marketed, and from Medicare and other insurers that ultimately pay for use. Although FDA and Medicare have streamlined procedures, review for new devices can be lengthy and approval uncertain. Devices that get FDA approval may be unsuccessful if insurers judge them to be too expensive. The costs associated with such regulation can be high, particularly with higher-risk, Class III devices.
Healthcare Cost-Containment - Because of rapidly increasing healthcare costs, private insurers and government programs like Medicare have moved to limit payments for many medical treatments that require medical supplies or devices. Doctors and hospitals, in turn, have a greater incentive to resist price increases. Wholesale prices for surgical instruments, for example, increased only 5 percent in the last 10 years.
Industries Where Shamir Optical Competes
- Consumer Products Manufacturers
- Eyewear Manufacturers
- Health Care
- Health Care Products
- Medical Equipment & Supplies
- Health Care Products
