Are you chasing market share in high-growth segments where growth is higher than industry market growth? Then you are just like all your competitors. One of your competitors probably comes from countries like China and India who are offering generic products at a much lower price than you, forcing you to spend too much energy on price and too little energy on growth.
What's your biggest issue with growth? Increasing demand from patients means plenty of potential growth, yet health budgets are not growing as fast as demand. So, your Healthcare customers keep discovering more ways to apply downward pressure on prices and to switch suppliers more easily. Yet you still need to achieve your growth targets.
One of your choices is to compete on price, keep dropping prices to win business. However, unless you can keep dropping costs too, profits stagnate or fall. Dropping your prices is like an addictive drug. Drop prices and you nee more volume to preserve the same sales or the same margin. So, to get more volume you drop prices. So, you have less margin to compete on things other than price. So, you have to drop prices more...
Luckily, you have two other choices to compete: managing customers better and managing value better.
how can we grow by managing our customers better?
Because of flat budgets and growing demand, your customers have become more sophisticated in their buying strategies. Customer's decisions involve more people than medical specialists. Decisions may involve procurement, health economists and executives. For you to win the business, medical approval is necessary but not longer sufficient.
Sustainable organic growth needs a deep understanding of key stakeholders and strategic customers. Rethinking and adapting approaches for your portfolio of key stakeholders and strategic customers is imperative.
Here's some information on Managing your Top Customers Better that will help you:
how can we grow by managing value better?
With flat health budgets and growing demand, competitors are fighting more aggressively for business. You need to deliver organic growth without new blockbuster drugs or new blockbuster devices.
Delivering sustainable growth needs a shift to value. However, for many people value is too fluffy and too vague. But, a value proposition based on real evidence, clinical, therapeutic and operational showing Return on Investment connects with decision makers and buyers across the spectrum. Companies that harness the real meaning of value are growing faster than their nearest competitors and increasing their share of wallet with their top customers using more products and services.
Here's some more information on Value that will help you: