Research On The Business Model Transformation Of Company A In The In Vitro Diagnostic Industry

With the increasing growth of China’s economic strength,Chinese people’s living standards have significantly improved.Consequently,their demands for medical services are growing rapidly.In this context,the in vitro diagnostics(IVD)industry has also achieved a huge leap forward.Relevant research projects conducted both in China and abroad show that IVD has a great potential in the Chinese market.However,international IVD giants have grabbed the majority of the huge IVD market.Statistics show that China’s IVD industry still suffers a relatively low domestic replacement rate,and the country relies on exported medical equipment and auxiliary reagents in many market segments.Foreign IVD enterprises capture 80% of China’s high-end IVD market,and domestic companies are trapped in fierce competitions in the middle and low ends of the market.In recent years,the Chinese government has launched the Healthy China initiative and carried out fundamental reforms of its medical service market.The government has also shown firm determination to enhance the quality and reduce costs of healthcare services through deepening the medical insurance reform.Against this backdrop,China’s IVD industry is facing tremendous challenges.This paper takes A Company,a leading enterprise in China’s IVD industry,as the research object.Through case studies on A Company’s business model transformation,it analyzes the role of business model in enterprise development.The paper starts with an elaboration on the concepts and theories that the research involved,such as business model,canvas analysis,and the concept and role of business model transformation.Meanwhile,it reviews the contents and thinking of relevant research conducted by Chinese and foreign scholars,and sums up their views as the subsequent footings for the paper.Then,the paper gives an overview to the development of the IVD industry and explores factors that drive or contain the development of China’s IVD industry.Based on the analysis of the development path of the international IVD industry and the evolution of IVD giants’ business models,the paper delves into the history and future trends of China’s IVD industry and sums up the characteristics of different business models adopted by Chinese and foreign IVD enterprises,laying the foundation for the research of A Company’s business model.After that,the paper introduces the status quo of China’s listed IVD companies and studies the factors that boost or contain their development,with the focus on researching A Company’s business model,analyzing the problems of its previous business model,and explaining the necessity and leading position of its business model transformation.Then analyze the evolution and transformation process of A company’s business model,use canvas analysis method to present A company’s business model transformation strategy,and use case data to verify the effectiveness of A company’s business model transformation.On this basis,the advantages and difficulties in the transformation of A company’s business model are summarized,and the experience in the transformation of the business model of A company is analyzed:the construction of the key operating system of the business model.In addition,on the basis of research results,it puts forward suggestions for systematic management of A Company’s business model transformation in terms of core advantage,personnel management,risk control,etc.Finally,further looks into the prospects of the IVD industry.