Value Chain And Performance Analysis Of Mindray Medical Enterprise

The development of China’s economy has led to an improvement in people’s living standards and at the same time promoted the development of medical device companies.The sinking of medical resources and an ageing population have further expanded the demand for medical device products.However,due to the late start of China’s medical device industry,the overall level of the industry lags behind that of developed countries and is inevitably at a disadvantage in the fierce competition in the global market,especially in the track of mid-to high-end medical products,where foreign brands such as Philips perform strongly and almost monopolise the domestic mid-to high-end medical device market.Mindray Medical,as the largest medical device supplier in China,has broken the long-standing monopoly of foreign brands in China’s mid-to high-end medical devices in the last two years.However,it still faces a relatively low level of performance and a relatively small share of the mid-to high-end market compared to international headline medical device companies.In order to solve the current problem of high foreign dependence of China’s mid-and high-end medical device products and to improve the overall level of China’s medical device industry,this paper takes Mindray Medical as the research object and proposes strategies to improve corporate performance from the perspective of the corporate value chain,in order to provide suggestions for the development of medical device companies.The paper begins with an overview of Meizu Medical’s operations and the current state of its corporate value chain.It is clear that Meizu has the highest revenue among Chinese medical device companies,and that its corporate value chain is well established,but its performance level is still far below that of international leaders.Therefore,in order to further improve Mindray’s corporate performance and strengthen international competition,this paper conducts a ridge regression analysis using the indicators of Mindray’s corporate value chain as the explanatory variables and comprehensive performance as the explanatory variables.The empirical results show that all four links of the value chain(R&D,production,sales and after-sales)have a positive effect on the overall performance,which indicates that Mindray can improve its overall performance by increasing its investment in the value chain or optimising its operational processes.Based on this,this paper compares Philips Medical,which has a high level of overall performance,with Mindray Medical in the enterprise value chain,to investigate the differences between Mindray Medical and international leading medical device companies in the enterprise value chain,and to determine how Mindray Medical can improve its enterprise performance in each link of the enterprise value chain.The study shows that Mindray Medical needs to improve the efficiency of its R&D output in the R&D segment;optimise its production structure in the manufacturing segment;invest more money in the sales segment,especially to increase incentives for sales staff;and strengthen its post-sales product feedback function in the after-sales segment.The above measures will improve Mindray’s business performance and also provide a reference for how Chinese medical device companies can improve their corporate value chain to strengthen their competitiveness.