Becton Vacutainer Essay

709 Words Oct 2nd, 2012 3 Pages
1. How has the healthcare industry changed from pre-1983 to post-1983? What are the implications for the Vacutainer Division?
2. How has Becton-Dickinson managed to be so successful (market share-wise) in this market? How important is the APG contract?
3. What are the interests of the key stakeholders in the terms of the Vacutainer-APG negotiations?
4. What should Becton-Dickinson do with respect to the demands from APG?

Value Proposition | For (customer), (company) offers its (product), which unlike the (competition) provides the owner with (benefit). | 5Cs | 4 P’s | Customer * Material mgrs of hospitals * Healthcare professionals * Medical research institutions * Industry – hospitals, medical laboratories, non hospital health
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Direct Sales | Collaborators * Affiliated Purchasing Group (negotiated price w/ BD) * BD product distributors (negotiated price w/ BD) * American Scientific Products (ASP) * Curteon – Matheson Scientific (CMS) * | Promotion * Use of bottom up sales strategy (p7) | Competition * Terumo, Japanese company * Sherwood Medical Corp, US based | | SWOT Analysis | Strengths * Blood collection systems were designed to meet hundreds of different needs – product assortment * Color coding schemes to make jobs easier * This evacuated – tube blood collection superior to needle – and – syringe: specimen integrity, convenience, lower costs, sterile for safety, backed by in depth clinical and research studies, company stands behind every tube you use * BD was the pioneer in converting the market to evacuated tubes * 80% market share in USA, and in USA 100% venous blood collection was done using evacuated tubes * Other suppliers needles and lancets * BD had a broadest line of blood collection products in the industry * Among bench people VACUTAINER is the best known product * Quality aggression – due to its vertical integration BD could keep a tight hold on quality | Weaknesses * < 40% of the blood collections in ROW were done using evacuated tubes | Opportunities * Bench people – lab technicians are the most concerned and need to be targeted * 70% of blood tests are done in hospitals * Significant revenue for commercial labs came from…