PwC: Medical technology companies developing customized growth strategies

By Rob Starr, Content Manager, Big4.com

According to a major study co-sponsored by PwC US and published today by Axendia, Inc,Medical technology companies looking to grow globally are finding that one approach does not fit all markets, and they are developing customized growth strategies to penetrate emerging markets, with products tailored to unique local market needs. The challenge is that companies are also finding that limited visibility into globalized manufacturing and distribution chains is leading to increased risk.

Increasingly, companies competing in emerging markets are seeking to leverage cost and quality as a competitive advantage, and are pursuing a multichannel approach to respond to market needs, the study found. They are offering a range of products that include both brands with advanced functionality and brands with a reduced set of features at a lower price point.

The report, entitled Walking the Global Tightrope: Balancing the Risks and Rewards of Med-Tech Globalization, reflects the findings of a survey of 125 executives from medical technology companies, including pharmaceutical, biotechnology, and medical devices companies, in 16 countries. Based on the survey and proprietary research, the report provides an overview of trends in the globalization of design, sourcing, manufacturing and distribution of medical technology products.

Increasingly, companies competing in emerging markets are seeking to leverage cost and quality as a competitive advantage, and are pursuing a multichannel approach to respond to market needs, the study found. They are offering a range of products that include both brands with advanced functionality and brands with a reduced set of features at a lower price point.