The Study Of The Distributor Evelution And Classification Management In Medical Device Industry

Medical diagnostics industry is the most important part of the medical device industry, with annual growth rate of over 20% high-speed development in China, much faster than those in the developed countries. Medical diagnostics industry is the key battleground of both multinational companies and domestic firms. In this highly competitive market of huge scale, distribution channel management is one of the key factors to ensure success. In this paper, the leading Corporation A, a real case of medical diagnostic device company is analyzed on its current distributors and other strategic assessment and classification management, combining with classical channel theory. Specific and actionable channel management optimization are analyzed and proposed based on the research and practical channels data from nearly 200 distributors. The main contents of this paper include three aspects. Firstly, the problems of Corporation A are analyzed through the analysis of domestic and international distribution channels and channel structure theory, and analysis of the questionnaire survey on involved distributors. Secondly, root causes of channel management issues are explored based on data. Thirdly, feasible suggestions are proposed for management of the targeted channel distributors based on the channel environment analysis and Corporation A’s channel strategy objectives and tasks, and based on its different business segments. This is the core part of this paper. Through practical work carried out, it has gradually showed that it has a good effect on the company management of its distributors. It has positive impact for Corporation A and its distributors on the sales promotion, market analysis, logistics prediction, operating cost reduction. The results of this article based on the investigation on Corporation A also provides ideas for other companies to select its distribution channels.