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RehabilityCase Group14
RehabilityCase Group14
Case review:
According to traditional medical supply stores, the current industry situation is driven
by health insurance funds as they represent 74% of the total market sales and only
purchase low-priced products. Furthermore, it was concluded that regulations restrict
opportunities for product diversification and innovation. Additionally, it was assumed
that consumers would follow the recommendations of their healthcare insurance
when making purchasing decisions. As a result of this, medical supply stores
focused on low-priced, standardized products, compromising quality to maximize
economies of scale. To enhance these effects large chain stores offering
a bride variety of products were established and service was cut to a minimum,
leading to a conveyed setting of “illness”.
It is pertinent to note that the abovementioned traditional mindset does not only
exists in high regulated industries. It can be a case in any industry with low
differentiation, switching costs and pressure for innovation as well an in industries
where multiple players influence the customer decision journey.
Rehabiltiy assumed that there is room for innovation and that the change in
consumer behavior -- consumers becoming aware of a healthier lifestyle - holds a lot
of promise in addressing the almost 5 million people with physical disabilities (1995;
2.45 million under 65 years of age). Furthermore, they expected that the target
segment of people with disabilities, that want to be an “active member of society” is
willing to pay for superior, high-quality products and services.
With a clear strategy and coherent actions, Rehability has created a successful
business as well as creating opportunities for consumers to play an active role in
society.