Strategic Growth in Light of Healthcare Market Commoditization

by Oliver Richards

Introduction
As healthcare markets mature, an increasing number of medical device, diagnostic, and pharmaceutical/ biotech manufacturers are dealing with product commoditization and competition from low cost competitors.  Manufacturers face challenges from a new slate of traditional and non-traditional competitors, including fast followers, efficiency-minded “distributor”-like organizations, reprocessers, and generics/biosimilars to name a few.  At the same time, customers are consolidating decision-making processes, and using group-purchasing organizations, and evolving health system-driven processes to increase purchasing power.

Healthcare Market Commoditization Framework

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