Based on the information in the case, carry out a Macro-environment analysis of Sub-Saharan Africa (SSA) clearly articulating the opportunities and threats related to the healthcare Industry.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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  1. Based on the information in the case, carry out a Macro-environment analysis of Sub-Saharan Africa (SSA) clearly articulating the opportunities and threats related to the healthcare Industry. 
products.
The Healthcare Industry in Sub-Saharan Africa
The sub-Saharan Africa region had 48 countries and an estimated population size of just over one billion,
- 11% of the world's population." The region experienced 24% of global diseases, but had only 3% of the
world's doctors.*
Although the quality of healthcare in sub-Saharan Africa had improved over the past five years, progress
was still slow in most countries. This had resulted in citizens travelling to other countries, such as South
Africa, for better quality healthcare – and so becoming so-called "medical tourists". Still, healthcare
investment was regarded as one of the fastest-growing sectors in Africa, supported by drivers such as a
fast-growing middle class, who demanded better healthcare, had a growing knowledge of healthcare
needs, and required better healthcare governance." According to Fredré Meiring, debt and capital
advisory partner at professional services firm Deloitte, apart from South Africa, countries such as
Botswana, Kenya, Nigeria and Tanzania showed signs of an advancing healthcare system.
40
Clearly, the sub-Saharan Africa countries provided private healthcare companies with opportunities for
investment. Researcher Jean-Claude Bastos de Morais estimated that US$25–US$30 billion in new
investment would be needed in healthcare assets to meet the growing healthcare demands of sub-Saharan
Moreover, the International Trade Administration estimated growth of US$11.5 billion in the
Africa."
medical devices market in 2018 in the Middle East and Africa." (See table below.)
42
Medical devices market: forecast for growth
(in USD billions)
2016
2019
Region
Americas
2017
2018
2020
166.6
176.5
187.3
197.9
208.6
Asia/Pacific
68.7
72.6
77.6
82.9
88.6
Central/Eastern
Middle East/Africa
14.6
15.7
17
18.1
19.1
10
10.8
11.5
12.5
13.2
Western Europe
79.5
85.1
92.6
101.4
106.2
Total
339.5
360.8
386.1
412.8
435.8
Source: Worldwide Medical Devices Forecast to 2020 **
Challenges and Opportunities
Even though most developing countries in the region had an urgent need for healthcare assistance and
private investment, global research company BMI, in its World Medical Devices Market Factbook 2012–
2017, was not optimistic about commercialisation prospects in sub-Saharan Africa. BMI’s reasons ranged
from "security threats in Nigeria and Kenya to systemic economic and political risks, pressurised aid flows
and corruption". The report also noted that several sub-Saharan Africa markets came with significant
regulatory and operational risks."
44
8 The duo sensor technology combined two professional measuring technologies - oscillometric technology and Korotkoff
technology – both used to measure blood pressure, so it reduced the possibility of malfunction, even in patients with heart
rhythm disorders. [Source: Paul Hartmann South Africa (2017), “Tensoval® Duo Control", available at:
https://za.catalog.hartmann.info/hartmann-shop/assortment/product.html;jsessionid=-
JRgLefbugPVYjBzh5SnF0SW?number=17826 (accessed 12 December 2017).]
5
Transcribed Image Text:products. The Healthcare Industry in Sub-Saharan Africa The sub-Saharan Africa region had 48 countries and an estimated population size of just over one billion, - 11% of the world's population." The region experienced 24% of global diseases, but had only 3% of the world's doctors.* Although the quality of healthcare in sub-Saharan Africa had improved over the past five years, progress was still slow in most countries. This had resulted in citizens travelling to other countries, such as South Africa, for better quality healthcare – and so becoming so-called "medical tourists". Still, healthcare investment was regarded as one of the fastest-growing sectors in Africa, supported by drivers such as a fast-growing middle class, who demanded better healthcare, had a growing knowledge of healthcare needs, and required better healthcare governance." According to Fredré Meiring, debt and capital advisory partner at professional services firm Deloitte, apart from South Africa, countries such as Botswana, Kenya, Nigeria and Tanzania showed signs of an advancing healthcare system. 40 Clearly, the sub-Saharan Africa countries provided private healthcare companies with opportunities for investment. Researcher Jean-Claude Bastos de Morais estimated that US$25–US$30 billion in new investment would be needed in healthcare assets to meet the growing healthcare demands of sub-Saharan Moreover, the International Trade Administration estimated growth of US$11.5 billion in the Africa." medical devices market in 2018 in the Middle East and Africa." (See table below.) 42 Medical devices market: forecast for growth (in USD billions) 2016 2019 Region Americas 2017 2018 2020 166.6 176.5 187.3 197.9 208.6 Asia/Pacific 68.7 72.6 77.6 82.9 88.6 Central/Eastern Middle East/Africa 14.6 15.7 17 18.1 19.1 10 10.8 11.5 12.5 13.2 Western Europe 79.5 85.1 92.6 101.4 106.2 Total 339.5 360.8 386.1 412.8 435.8 Source: Worldwide Medical Devices Forecast to 2020 ** Challenges and Opportunities Even though most developing countries in the region had an urgent need for healthcare assistance and private investment, global research company BMI, in its World Medical Devices Market Factbook 2012– 2017, was not optimistic about commercialisation prospects in sub-Saharan Africa. BMI’s reasons ranged from "security threats in Nigeria and Kenya to systemic economic and political risks, pressurised aid flows and corruption". The report also noted that several sub-Saharan Africa markets came with significant regulatory and operational risks." 44 8 The duo sensor technology combined two professional measuring technologies - oscillometric technology and Korotkoff technology – both used to measure blood pressure, so it reduced the possibility of malfunction, even in patients with heart rhythm disorders. [Source: Paul Hartmann South Africa (2017), “Tensoval® Duo Control", available at: https://za.catalog.hartmann.info/hartmann-shop/assortment/product.html;jsessionid=- JRgLefbugPVYjBzh5SnF0SW?number=17826 (accessed 12 December 2017).] 5
Hartmann Southern Africa: Keeping Healthcare Moving Forward
Further relevant challenges facing sub-Saharan Africa countries included limited energy resources, a
"brain drain" of healthcare practitioners at all levels, inaccessibility to medical facilities in rural areas,
inadequate road infrastructure, poor power supply and limited government funding. The shortage of
trained healthcare practitioners, including community health workers, was the result of inadequate
salaries, poor working conditions, the unwillingness of international donors to support financing for
human resources, and a lack of medical schools, among other factors."
46
Of note was analysts’ emphasis on the importance of mobile technology in delivering better healthcare,
given the high penetration of mobile networks in countries in sub-Saharan Africa." According to the
World Health Organization (WHO), more people across Africa had access to a mobile network than to
electricity, clean water or a medical facility.*8 This was confirmed by a report from mobile operator
association, GSMA Intelligence. Its The Mobile Economy: Sub-Saharan Africa 2017 report projected that
mobile network subscriber numbers in sub-Saharan Africa countries would grow from to 420 million
(43% of the population) at the end of 2016 to 535 million in 2020." Medical manufacturing companies
could, therefore, take advantage of the region's mobile networks by developing and using mobile solutions
to support their own medical devices.
50
BMI noted that as a result of an increase in non-communicable diseases such as cancer and diabetes in the
region, more advanced medical equipment was needed. Cancer had become a major public health problem
in sub-Saharan Africa. So much so, that BIO Ventures for Global Health (BVGH) called it a "crisis" and
reported that by 2017, 60% more Africans had died from cancer than from malaria." The risk of dying
from cancer was very high, because of late diagnosis and lack of treatment due to limited resources.
52
However, because medical equipment (also for conditions other than cancer) was expensive, companies
that manufactured low-cost alternatives were in demand in sub-Saharan Africa. Companies operating in
this space included GE Healthcare's Sustainable Healthcare Solutions (SHS) business", which aimed to
provide high-value, low-cost technologies and healthcare delivery solutions to underdeveloped countries.
The company had developed low-cost devices in the fields of cardiology, radiology and surgery." An
example of a low-cost product was the Philips VISIQ portable ultrasound system with high-resolution
imaging in a small, lightweight package with a two-and-a-half-hour battery life.* This portable system,
the size of a tablet, was used in remote areas in Kenya to detect critical conditions in pregnancy."
53
The importance of wound debridement (the medical removal of dead, damaged or infected tissue to
improve healing) and management of traumatic wounds in sub-Saharan Africa countries had been
highlighted by the Lancet Commission on Global Surgery'. Yet, the commission made no mention of
chronic wounds, nor of training health workers in managing these wounds. Chronic wounds, according to
Dr Terry Treadwell, who had experience in Africa of treating such wounds, were "a major problem" in
sub-Saharan Africa countries." Because the most common types of chronic wounds were leg ulcers,
pressure ulcers and diabetic foot ulcers, the WHO suggested horizontal systems of primary healthcare in
Africa. Such an approach encouraged different disciplines to work together as a cross-functional team –
for example, diabetic experts and leprosy experts could both attend to chronic wounds."
56
A common ailment in sub-Saharan Africa was obstetric fistulas – a form of urinary incontinence that can
arise during childbirth, especially when a trained birth professional or a doctor is not present. An estimated
2 million women suffered from the condition in sub-Saharan Africa countries, according to researcher
Nicole Telfer.8 (See also Exhibits 5a for a map showing sub-Saharan Africa countries, and 5b for
country-specific information, and the Excel spreadsheet for further information.)
h The SHS business aimed to serve the 5.8 billion people in the world with little to no access to healthcare, by means of the
development of disruptive, low-cost technologies and healthcare delivery solutions relevant to multiple care settings and non-
traditional users. Digital industrial company GE participated in many business sectors – including power, transportation,
healthcare, energy connections and aviation. GE had established an Africa Innovation Centre in South Africa that served as a
centre of excellence for innovation and technology transfer to seven countries in sub-Saharan Africa. [Source: GE Africa (n.d.),
"South Africa: About", available at: www.ge.com/africa/company/south-africa (accessed 30 November 2017); and GE
Healthcare (2017), “Sustainable Healthcare Solutions", available at: http://shs.gehealthcare.com/ (accessed 18 January 2018).]
i The Lancet Commission on Global Surgery identified and developed programmes to meet underdeveloped countries’ needs by
2030.
6.
||
Transcribed Image Text:Hartmann Southern Africa: Keeping Healthcare Moving Forward Further relevant challenges facing sub-Saharan Africa countries included limited energy resources, a "brain drain" of healthcare practitioners at all levels, inaccessibility to medical facilities in rural areas, inadequate road infrastructure, poor power supply and limited government funding. The shortage of trained healthcare practitioners, including community health workers, was the result of inadequate salaries, poor working conditions, the unwillingness of international donors to support financing for human resources, and a lack of medical schools, among other factors." 46 Of note was analysts’ emphasis on the importance of mobile technology in delivering better healthcare, given the high penetration of mobile networks in countries in sub-Saharan Africa." According to the World Health Organization (WHO), more people across Africa had access to a mobile network than to electricity, clean water or a medical facility.*8 This was confirmed by a report from mobile operator association, GSMA Intelligence. Its The Mobile Economy: Sub-Saharan Africa 2017 report projected that mobile network subscriber numbers in sub-Saharan Africa countries would grow from to 420 million (43% of the population) at the end of 2016 to 535 million in 2020." Medical manufacturing companies could, therefore, take advantage of the region's mobile networks by developing and using mobile solutions to support their own medical devices. 50 BMI noted that as a result of an increase in non-communicable diseases such as cancer and diabetes in the region, more advanced medical equipment was needed. Cancer had become a major public health problem in sub-Saharan Africa. So much so, that BIO Ventures for Global Health (BVGH) called it a "crisis" and reported that by 2017, 60% more Africans had died from cancer than from malaria." The risk of dying from cancer was very high, because of late diagnosis and lack of treatment due to limited resources. 52 However, because medical equipment (also for conditions other than cancer) was expensive, companies that manufactured low-cost alternatives were in demand in sub-Saharan Africa. Companies operating in this space included GE Healthcare's Sustainable Healthcare Solutions (SHS) business", which aimed to provide high-value, low-cost technologies and healthcare delivery solutions to underdeveloped countries. The company had developed low-cost devices in the fields of cardiology, radiology and surgery." An example of a low-cost product was the Philips VISIQ portable ultrasound system with high-resolution imaging in a small, lightweight package with a two-and-a-half-hour battery life.* This portable system, the size of a tablet, was used in remote areas in Kenya to detect critical conditions in pregnancy." 53 The importance of wound debridement (the medical removal of dead, damaged or infected tissue to improve healing) and management of traumatic wounds in sub-Saharan Africa countries had been highlighted by the Lancet Commission on Global Surgery'. Yet, the commission made no mention of chronic wounds, nor of training health workers in managing these wounds. Chronic wounds, according to Dr Terry Treadwell, who had experience in Africa of treating such wounds, were "a major problem" in sub-Saharan Africa countries." Because the most common types of chronic wounds were leg ulcers, pressure ulcers and diabetic foot ulcers, the WHO suggested horizontal systems of primary healthcare in Africa. Such an approach encouraged different disciplines to work together as a cross-functional team – for example, diabetic experts and leprosy experts could both attend to chronic wounds." 56 A common ailment in sub-Saharan Africa was obstetric fistulas – a form of urinary incontinence that can arise during childbirth, especially when a trained birth professional or a doctor is not present. An estimated 2 million women suffered from the condition in sub-Saharan Africa countries, according to researcher Nicole Telfer.8 (See also Exhibits 5a for a map showing sub-Saharan Africa countries, and 5b for country-specific information, and the Excel spreadsheet for further information.) h The SHS business aimed to serve the 5.8 billion people in the world with little to no access to healthcare, by means of the development of disruptive, low-cost technologies and healthcare delivery solutions relevant to multiple care settings and non- traditional users. Digital industrial company GE participated in many business sectors – including power, transportation, healthcare, energy connections and aviation. GE had established an Africa Innovation Centre in South Africa that served as a centre of excellence for innovation and technology transfer to seven countries in sub-Saharan Africa. [Source: GE Africa (n.d.), "South Africa: About", available at: www.ge.com/africa/company/south-africa (accessed 30 November 2017); and GE Healthcare (2017), “Sustainable Healthcare Solutions", available at: http://shs.gehealthcare.com/ (accessed 18 January 2018).] i The Lancet Commission on Global Surgery identified and developed programmes to meet underdeveloped countries’ needs by 2030. 6. ||
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