With a market size of about 400 billion dollars as of 2014, the global medical device market has been growing rapidly, and this growth momentum is expected to continue. Spurred on by a market upswing, demand for innovative new technologies has been growing. Given this situation, even manufacturers specializing in other fields can find opportunities to enter this market. The medical device market where physicians make purchasing decisions is a lucrative market because of the high levels of added value offered by medical devices. Nevertheless, the key factors for success (KFS) in the market are not limited to those related to technological strengths.
Actually, many newly participating manufacturers have failed to expand their businesses after entry into this market. The causes of failure are often attributable to an inability to understand the importance of sales strategies in the medical device market. Being proud of their outstanding technological capabilities, some Japanese manufacturers tend to believe that gif we offer excellent products, they will sell without difficulty. h
In pursuit of genhancing sales functions, h which is the most critical and most important factor for success, new entrants must meet five product/service requirements. These requirements are derived from factors that affect physicians f purchasing decisions. Successful manufacturers have been able to acquire and maintain highly effective sales functions by implementing measures designed to satisfy these requirements. It is difficult to expand business simply by offering superior products in the market.
To satisfy these product/service requirements, efforts to devise and implement necessary measures must start at the product development phase. In studying the measures, new entrants must actively consider the options of incorporating the management resources of other companies such as through undertaking mergers and acquisitions (M&A) and/or entering into partnerships. Another vital measure for business expansion is to transform a company fs existing development management techniques to conform to the development environment of this market.
For more comprehensive discussions about the medical device business, please see the July 2014 issue of Chiteki Shisan Souzou (Knowledge Creation and Integration) featuring gIryo-kiki bizinesu ni yoru jigyo seicho wo gensou ni owarasenai tameni (Don ft let projected business growth driven by the medical device business end up being a mere dream) h (only available in Japanese).