MARKET DYNAMICS

INDUSTRY ATTRACTIVENESS - PORTER’S FIVE FORCES ANALYSIS

PORTER’S FIVE FORCES ANALYSIS OVERALL RATING

• Lucrative growth opportunities due to the rising prevalence of cardiac disorders such as strokes and coronary heart failures are expected to drive the
entry of new players in the market. However, factors like stringent governmental regulations and the high cost of scaling up have prevented new
THREAT OF NEW
companies from entering the market. MODERATE
ENTRANTS
• Further, the market studied is already dominated by key players such as Medtronic PLC, Abbott Laboratories, Boston Scientific Corporation PLC, etc.
Thus, the threat of new entrants is expected to be moderate.

• Due to relatively low insurance penetration, the cost of devices or procedures is usually paid by the individuals/patients. Hence, the ability to force
BARGAINING POWER OF down prices is low. LOW TO MODERATE
CONSUMERS
• Moreover, buying power is becoming more consolidated in the industry, and medical reimbursement policies are evolving.

• High switching costs, both in terms of suppliers and manufacturers, high impact of inputs on the cost of final products, and presence of substitute

BARGAINING POWER OF
inputs are responsible for increasing suppliers' bargaining power.
MODERATE
SUPPLIERS • Moreover, a high supplier to firm concentration ratio and strong distribution channels are expected to result in the moderate bargaining power of
suppliers in this market. Thus, the bargaining power of suppliers is moderate.

• The threat of substitution is expected to be low to moderate due to the presence of no/fewer options to substitute the existing cardiology device
THREAT OF SUBSTITUTE
technologies. There can be an internal threat of substitution as more technologically advanced types of equipment are getting launched. Hence, the LOW TO MODERATE
PRODUCTS/SERVICES
threat of substitution is expected to be low to moderate.

• Many local and international companies have been involved in the production of cardiovascular devices. Moreover, there is a high chance of obtaining
a sustainable competitive advantage through innovative products, resulting in increased competitive rivalry among market players.
INTENSITY OF
• Powerful competitive strategies, increased advertising expenses, and high competition between online and offline companies are further responsible HIGH
COMPETITIVE RIVALRY
for increasing the competitive rivalry. Hence, the intensity of competitive rivalry is high.

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REPORT – CARDIOVASCULAR DEVICES MARKET

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