Research On The Competitiveness Of IVD Companies Based On Value Chain Analysis

With the continuous growth of the economy,the medical device industry has developed rapidly worldwide.Under the environment of rapid development of various new technologies and gradual improvement of medical security policies in most countries,the in vitro diagnosis industry which is the largest sub-industry of the medical device industry has become one of the most active and fastest growing industries in the medical market.In China,the strong support of industrial policy has further promoted the development of the industry.The huge population base,the increasing coverage of medical insurance and reimbursement ratio,the liberalization of the second-child policy and the increasing incidence of infectious and chronic diseases,etc.,these factors have resulted in a strong demand for in vitro diagnostic market in China and a huge development prospect in the domestic market.However,with the continuous expansion of market demand,it also brings the intensification of competition.Although in recent years,some excellent enterprises have emerged,but generally speaking,domestic enterprises often have problems such as small market size,less R&D investment and less core varieties.The domestic high-end market is mainly occupied by international diagnostic companies.In addition,the raw materials for diagnostic products mainly depend on imports.Therefore,facing the huge domestic market demand,how to obtain sustainable competitive advantage,how to maintain long-term survival in the tierce competition,and how to possess the competitiveness of enterprises are the problems that Chinese in vitro diagnostic enterprises must seriously face and think about.Value chain is an effective method to analyze the competitiveness of enterprises.Based on the theory of value chain and enterprise competitiveness,this thesis makes a systematic analysis and in-depth study on how to improve the competitiveness of in vitro diagnostic enterprises in China(taking H company as an example),using the methods of literature analysis,comparative analysis,in-depth interviews and case study combined with theory and empirical analysis.Firstly,the market development and industry competition of in vitro diagnostic industry in the world are studied,and the future development trend of in vitro diagnostic industry in China is analyzed.Five-force model was used to discuss the competitive environment of in vitro diagnostic industry,and the vertical value chain of in vitro diagnostic industry was analyzed.Secondly,this thesis lists H in vitro diagnostic company as the object of analysis,analyses and studies the business activities related to H company,upstream raw material suppliers,downstream vendors and customers,points out the problems and shortcomings of H company in related activities,and puts forward some suggestions to enhance its competitiveness.At the end of the thesis,based on the research of H company’s value chain analysis to enhance the competitiveness of enterprises throughout the industry,some suggestions are put forward on how to enhance the competitiveness of in vitro diagnostic enterprises in China from the perspective of value chain,including how to strengthen in-depth cooperation with suppliers;enterprises can expand the industrial chain,forward and backward development;strengthen R&D investment and technological innovation;implement marketing;The improvement of sales mode and the strengthening of brand building will provide some methods and reference for the development of other in vitro diagnostic enterprises in China.