Analyzing growth opportunities using growth rates is an easy way to categorize and evaluate said opportunities. However, growth rates do not always convey the full impact of growth drivers. As a result, incremental revenue analysis can be used to calculate growth contribution for different opportunities, providing context for these opportunities and helping to make better decisions. By using this analysis and selecting key medical device markets within the cardiovascular, orthopedics, and endoscopy therapy areas, we determined that the largest growth opportunities can be leveraged by expanding sales of mature technologies in emerging markets, while selling innovative devices in developed markets also represents a lucrative opportunity in some therapy areas. Through consideration of this analysis and an evaluation of core competencies and potential partnerships, medical device manufacturers can most effectively and efficiently realize these opportunities.
Questions Answered in This Report:
- Economic growth in some emerging markets has slowed in recent years. How are these markets expected to perform with regards to the medical device industry?
- Two common avenues for growth in the medical device market include developing new technology and expanding into emerging markets. Which growth avenue has been the most successful in recent years, and which will be the most successful going forward?
- The medical device market is made up of diverse therapy areas, each with different considerations. Will the growth avenues differ in impact by therapy areas? If so, how impactful will this difference be on decision-making?
- Controlling costs is an important consideration when looking at growth opportunities. How can medical device companies leverage partnerships with other organizations to control costs and focus on core competencies when investigating these growth opportunities?