Research On The Development Strategy Of CM Medical China

Chinese medical device market is characterized by large scale,fast growth and late start.At present,Chinese medical market accounts for about 14% of the global market,and has become the second largest market in the world.In the past five years,the growth rate has maintained at 20%,far exceeding the global average growth rate.Due to the limitations of materials technology and basic research,the low-end products have achieved independent R & D and production.The high-end products mainly rely on imports,and the proportion of imported medical devices in China is more than 50%.As medical device products are closely related to people’s health,the state’s supervision of the industry is becoming increasingly stringent,and the market price regulation is also forceful.With the arrival of Chinese aging population,the capacity of Chinese medical market will further increase.A large number of imported medical device companies have taken the lead in the layout of the Chinese market,and CM Medical China company is one of them.CM Medical China company has been deeply engaged in the Chinese market for more than 20 years.With the rapid development of the Chinese medical market,the company’s performance in China has grown rapidly,and the Chinese market has become the second largest market in the world.Since 2017,the national health care reform has been deepening,with the introduction of two ticket system,provincial bidding,centralized procurement and other policies,resulting in the continuous decline of the overall market price of medical devices.The product price of CM medical company in China also decreased significantly,and the profit also decreased.At the same time,the growth rate of market share slowed down.With the introduction of the national medical device "localization substitution" policy,the market space of imported medical device companies such as CM Medical China company has been further compressed,and the morale of the company’s internal and dealers has been low.In such an environment,what kind of development strategy CM Medical China should adopt to achieve its goal of "based in China,becoming a leader in the field of minimally invasive medical device intervention in China" is the primary problem to be solved.This thesis takes CM Medical China company as the research object,combined with the external macro environment and industry environment of the company,and finds out the external opportunities and challenges faced by the company by PEST analysis and Porter five force model analysis;Then,combined with the resources and capabilities of the company,the advantages and disadvantages of the company are analyzed.The SWOT analysis method is used to analyze the above opportunities,challenges,advantages and disadvantages,and concludes that the strategy that the company should choose is "differentiation strategy".Combined with the current development characteristics of the company,the implementation of differentiation strategy of the company needs to start from three aspects: product differentiation,service differentiation and market promotion differentiation,to break the existing situation and establish a new competitive advantage of the company.In order to guarantee the implementation of differentiation strategy,the company needs to give strong support from four aspects: unifying the ideological understanding and ensuring the effective implementation of the strategy;Localization of R & D and production,and rapid introduction of products into the market;Adjust the organization structure and meet the needs of market development;We will strengthen human resource construction,introduce high-end talents and train excellent employees in the interior.The purpose of this study is to make clear the strategic positioning,screen the development strategy,formulate the security plan for CM Medical China,help the company out of the current predicament as soon as possible,and make a modest contribution to realize the goal of "based on China,becoming a leader in the field of minimally invasive medical device intervention in China".