Life Scan Executive Summary

1061 Words5 Pages
Overview Life Scan, Inc., was established in 1981 as is one of Johnson and Johnson’s Diabetes Solution Companies. Life Scan, Inc. develop products that improve the quality of life of people with Diabetes and is the leading supplier of blood glucose monitoring systems. Life Scan is located in Milpitas, California with over 3,000 people worldwide with manufacturing facilities in Puerto Rico and Scotland (LifeScan, Inc., n.d). In 2009, Johnson and Johnson’s, Life Scan, Inc. released the OneTouch Ultra 2 glucose meter. In 2015, annual sales of Johnson and Johnson worldwide topped $8,094 in millions (Johnson & Johnson, 2015). Elasticity The concept of elasticity considers the responsiveness of supply or demand in relation to changes in price of…show more content…
According to the Centers for Disease Control and Prevention (CDC) (2014), “about 29.1 million Americans have Diabetes, 21 million diagnosed, and 8.1 are undiagnosed”. The CDC evaluated the long-term trends of Diabetes in the United States from 1958 to 2013. The prevalence of Diabetes has steadily increased from 0.93 percent in 1958 to 7.18 percent in 2013 (CDC, 2014, p. 3-4). The other non-price factor that impacts the demand for the OneTouch Ultra 2 glucose monitoring device are other competitor that have competitive prices. Consumer Report 2015 announced 10 recommended meters manufactured various companies to include FreeStyle Lite, Bayer, Walgreens, Accu-Check, and Walmart (Vieira, 2015). Competitors and the price of their products have a significant impact on quantity…show more content…
Advancements in technology has made it easier and more attractive for other companies to include Panasonic, Saniofi and store brands such as Walgreens, Walmart, and Target an opportunity offer competition in the glucose meter market (Calton, 2015). If more suppliers enter the glucose meter market, this will cause the supply curve for the Ultra 2 glucose meter to curve downward because consumers have other options to choose from at very competitive prices. According to Hughes (2009), “technology innovation has been an important aspect of self-monitoring blood glucose market which is ultimately helped glucose vendors stay competitive with each other”. The cost of input includes the cost of labor, licensing, utilities, facilities, and raw materials needed to produce glucose meters. If the cost of input increases, then the cost of production increases (Miller, 2016, p.
Get Access