Research On The Development Strategy Of W Medical Device Company

The medical device is an integral part of the medical service system.As a result of the reform of the medical care system and perfection of law,as well as the people’s increasing awareness of health、high-level power of consumption and the population aging,the medical demand will become more and more desirable,which will bring broader market prospect to the industry of medical devices.Meanwhile,the unification bidding of the medical devices and central purchasing,as well as the ’Two Tickets System’ have been implemented,which will make an impact on the industry of medical devices too.At present,the industry of medical devices in China is in the preliminary stage,which may bring both broad market prospect and big challenge.As for the high-end market of medical devices,foreign producers have occupied most of the share,they also hold the key technologies and various patents for invention.By contrast,because of the low-level technology and price competitiveness,the producers in China just have to fight for share in the mid-and-low-end market.Given this situation,the producers in China must attach importance to R&D of the key technology、innovation、capital operation、marketing and brand influence,so that they can grab the opportunity in the more and more fierce competition and undergo the threats and challenges making use of own advantages along with scale up.Under this background,as one of the fastest developing producers in China,W company should take advantage of its resource in order to achieve sustainable development.This paper picks W company as the object of study,fully analyzing several series of products by comparing with competitors.This paper also uses strategic analysis method to analyze both external and internal environment of the company.A conclusion that W company has some good opportunities and corresponding big challenges can be drawn by using the PEST analysis method and the Michael Porter Five Force Model.The external opportunities are:Stable political situation and the support to the industry of medical devices from country,which is good at the industry development;Increasing medical demand which promotes the expansion of market;Perfection of rules in the industry which provides favorable environment;High difficulty of joining in which can block prospective competitors outside somehow.There are also some external challenges:Fierce competition in the industry;High-level bargain power of the customers;High difficulty of R&D;Big gap between foreign and domestic products.In the internal respect,W company has following opportunities:Outstanding market network and customer base;High-level profitability and sufficient funds,which is favorable for business expanding of company;Various Hi-Q products which create good brand image.There are also some challenges:Low-level QOS;Lack of research personnel;Time delay to transmitting information and so on.Analyzing both the internal&external environment and the resource of the company with the SWOT analysis method,I got a conclusion that the growth-oriented strategy fits the present company.On the corporate level,W compony should adopt the integration strategy,focusing on current business and trying to extend new business to the raw material manufacture industry.On the business level,W company should adopt a prior cost leadership strategy combining the differentiation strategy so that it can enhance competitiveness and then consolidate its market position with low-price high-quality in products and service.Considering the representativeness of W company in the industry of medical devices,I can judge that analysis about it also has practical reference value for other enterprises.