Medisys
Medisys faces various industry level issues that affect the performance of the company. Medisys is a privately held medical device manufacturer who is mainly involved in the development, manufacture and sales of medical monitoring systems with the various hospital segments. The company has been successful in its design due to its entrepreneurial culture centered on innovative thinking across the company. However, the company faces various industry level issues that could affect the growth and development of the company in the U.S health care industry (IJzerman & Steuten, 2011). First, the current market for health care systems is undergoing rapid innovation and development. The rapidly growing innovation and designs of health care systems is more demanding to individual firms that intends to match the industry competitiveness.
Medisys would be forced to continually improve its products innovation and designs to adjust with the changing innovations and technologies in the health care sector (Sorek, 2014). Secondly, there is an increased pressure on the costs of the new technologies and medical devices. The costs are attributed to the overall nature of producing the devices and systems. The costs of technology and production are high due to the increased capital investments with the company. These pushes the costs of individual product design upwards and thus, making them unaffordable to most public hospital segments. Medisys should come up with relevant strategies to deal with the increased pressure of the costs.
Thirdly, changes in the regulatory environment are another crucial issue affecting the industry level at Medisys. For instance, the EU issued a directive, 2007/47/EC that lead to the resulting classification of hip endoprostheses to have an effect on the orthopedics markets. However, the requirements have changed and more documentation and technical requirements. It is also important to recognize the various stricter regulations for the clinical trials and close evaluation of clinical data and information. U.S FDA also made significant changes by allocating more funds towards medical research and technologies. Considering the increase in funding, the government has instructed stricter audits to unleash any management and validation issues. The current medical technologies and processes have increased the pace of innovation in the health care industry (IJzerman & Steuten, 2011). The manufacturers of medical tools and systems such as Medisys have been given the responsibility to deal with their responsibilities and maximize quality control. This is done through ensuring enhanced patient safety and benefits. The key industry level issues involve the issues useful in improving the patient safety, which is the main driving force in the increased medical product regulation.
Based on Porter’s Five Forces, Medisys has been able to loss some market share to other firms producing the same products. Firstly, the supplier power of the company is strong due to its design and development of the IntensCare. This indicates the company’s ability to possess a facility for offering the required medical procedures and services. Secondly, the buyer power has also affected the market of Medisys due to the increased costs of the medical procedures and devices. Some of the hospital segments are not able to afford the medical devices. Thirdly, competitive rivalry is another major concern (Sharma et al., 2013). Medisys faces competition from other Stryker and Tronex among companies that specializes in the design and manufacture of similar medical devices. This reduces the overall market share covered by Medisys in the U.S health care market. Fourthly, the threat of substitution is low to due to nature and costs of the medical devices and systems designed by the company. Lastly, threat of new entry also cannot explain the reduction in market as a new company faces increased barriers to entry. The barriers include high cost of investment, government regulation and experienced personnel among others. The increased government regulations and intense competition explains the possible market share loss by Medisys in the U.S health care industry.
References
IJzerman, M. J., & Steuten, L. M. (2011). Early assessment of medical technologies to inform product development and market access. Applied health economics and health policy, 9(5), 331-347.
Sharma, A., Blank, A., Patel, P., & Stein, K. (2013). Health care policy and regulatory implications on medical device innovations: a cardiac rhythm medical device industry perspective. Journal of Interventional Cardiac Electrophysiology, 36(2), 107-117.
Sorek, G. (2014). Price controls for medical innovations in a life cycle perspective. Health economics, 23(1), 108-116.
