Product Medical Syringe Co. is one of the top leading providers of medical syringes to hospitals and clinics. We manufacture bulb syringes, Catheter Tip Syringes (feeding tube syringe), Curved Tip Syringes, Feeding/ oral medication syringes, and insulin syringes. We also manufacture syringe and needle combinations as well. Target Market We intend to develop the markets in Singapore. According to the State Department, there is much opportunity to export into Singapore. Generally, government accounts for most of the healthcare purchases for the country.
We intend to enter the Singapore market because we have seen recent increases in diabetes cases. Data that was released by International Diabetes Federation at its 19th world congress, showed that Singapore ranked second among countries for people on the verge of having diabetes. “About 250,000 people in Singapore are estimated to suffer from diabetes. The Atlas, released yesterday, predicts that by next year, there will be 246 million people with diabetes worldwide. This will jump to 380 million by 2025. ” (Straits Times, Singapore 2006).
This creates a need for suppliers to supply more insulin syringes. As more and more cases of diabetes arises, patients will look to our syringes to help save their lives. These patients are what drives our demand. To get a picture of how large there operation is that they account 80% of the total number of hospital beds in the country. Singapore will not run out of demand because they the have access to many neighboring countries as well. Singapore cares for patients in Malaysia, Brunei, Indonesia, Thailand and the Philippines.
Population abundance demand drives the Singapore medical market. They call this medical tourism – Thailand and Malaysia are big competitors – Singapore might have to focus on a specialty segment. Opportunity The biggest player in demand of healthcare supplies for Singapore’s own government. They have focused on building structures to help with Medical Supply chain in the country. According to Singapore’s government, they want to expand their market growth in medical and healthcare from 1% to 3% by 2012. There are 134 government hospitals in the country (Star, The Peoples Paper, 2007).
There areThey have 23 area hospitals and 6 specialty centers that cater to 400 million people in Southeast Asia. Singapore’s Their government is focussed on medical technology and the medical industry itself, which leaves a lot of room for growth in the coming years. Projected Outcome We believe that we have laid out the proper groundwork to have a successful impact in medical service to Singapore. Our team has put forth the proper plans in regards to our connections, logistics, and requirements for exportation. For these reasons, we believe that we will more than a 15% return on investment.
Based on our projected income statement, we will have at least a 19% increase on profits in 2 years. Our projected income statement is evaluated based on cost from international and domestic cost. Fixed and variable cost were applied to the income statement, we see an increase of $637,331. 00. That is almost double from 2007 statement. Situation and Opportunity The prosperous country of Singapore can undoubtedly constitute their success to their remarkable business judgments. Within the positive subject matter, Singapore’s import and export of products and agricultures has made a huge impact on the economy.
As the country moves toward a long-term goals there is a great need for raw materials to meet the standards of the growing population. The fast growing population demands exceeds supplies, which amount to the annual growth rate of 8 percent a year on imports. Singapore is the most sophisticated economy in Southeast Asia; the government and citizens are confident they are going to continue to do well. The country offers economic and political stability to their citizens and foreign investors with few regulation and restriction.
Singapore’s business slogan states, “Whatever, it is you have to sell, the cash-rich Singaporeans will either buy it or find someone, somewhere, who will. ” They offer a competitive edge in prompt service, customer commitment, promoting stability, and long-term availability to their citizens and visitors. As Singapore move toward the future, the country faces a number of challenges that would threaten the well-being of its citizen. For instance, there is a rapid ageing population with 7 percent of the population over the age of 65 and is expected to double by 2020.
There is also a need of medical research and development in medical technology. Singapore comes to grip with this new medical reality and fight to offer excellent healthcare to its citizen. The country is also in great need of imports for medical supply since foreigners offer high-tech products. The country aims to become the medical treatment and distributor center for Southeast Asia, managing production for some of its less-developed neighbors like Malaysia and Indonesia. Their willpower has made them the first in its medical healthcare system in Asia pacific and 16th in the world.
The government is continuing to improve their healthcare system, they funds up to 90 percent of capital expenditure, and 50 percent operating expenditure which provide healthcare for elderly. Healthcare spending has accounted for 3% of GDP. The government intends to create equality in the welfare of their citizens, pledging that no Singaporean would be depriving the treatment he/she needs because of lack of means. Due to the various efforts placed on their health care system, it is apparent that health care is at a high position in the national plan.
Healthcare rank 5th in order of priority for public funds, national security, job creation, housing and education. Making health care top priority to their citizens means an increase in life expectancy and rising idea lead to greater demand of health care services. Government is emphasizing on health promotion and disease prevention. Due to outbreaks of new and potential fatal viruses, the government is making a proactive effort minimize shortage of facilities. For example, in 2003, the Severe Acute Respiratory Syndrome, also known as SARS, broke out in Singapore.
Statistics show an increase in medical needs in the past decades but currently there are around 82% of private clinics, 1218 practitioners, and 16 modern polyclinics in Singapore. Hospital facilities were upgraded and an increase in sophisticated equipment acquired. There is also an increase in private medical clinics with 4,495 registered medical practitioners including a list of projects such as building: general hospitals, women and children hospitals, psychiatric hospitals, community hospitals, institute of health, and polyclinics.
Asides from the multiple of projects there is plan of a multi-million dollar medical services to attract foreign investment. It appears that the current and future health plans for the Singaporeans is well planned out. Therefore, Singaporeans most if not all should have should have no defense not to have health care. Another fact is that health care is very affordable, $7 for adult, $3. 50 for children and elderly 65 years and above, per visit. Public segment salaries is highest in the world, therefore most of the citizens have the means to afford health care.
With the increase in health care development, there is a great demand for medical equipments. Thourak, alan, kim and ali : You really need to boil this down to the “target segment you plan to serve” with some statistics that help you define the market size (potential) While the paper can remain broad – you need to illustrate for us (consider the audience to be potential investors or a management team) how this looks at the street level. One recommendation would be to drill down into one of the target segments that you plan to serve (i. e. daily insulin users) tell us how many diabetics are in Singapore – and how many more expected.
Market Entry Strategy There are three basics to forming a market entry strategy. We have looked three key elements to a successful penetration of our target market. First, we will examine our connections with the Singapore. We must search out and find the right connections to help facilitate our products. Second, we will look at logistics. This is important, because logistics is a form of customer service. If we are able to satisfy our customers’ needs in a timely fashion, we will build our reputation as dependable, and ultimately increase our sales.
Finally, we will take a look at some requirements that will take our company to the top of the medical devices “food chain. ” It is our belief, with these three key elements, we will be successful. Our market entry strategy will not consist of pricing and promotion. The only way to penetrate the bio medical market in Singapore is to enter the market with an agent. A firm based in Singapore that will help with the facilitation of sales. To find the right firm will be easier said then done, but we do have help. Singapore’s government has made an effort to reach outsourced suppliers.
Their government is trying to make Singapore more user friendly to exporters. They have created services that help exporters find appropriate firms. According to Singapore’s Business Times, Singapore will launch a web portal with list of government firms that are interested in importing goods. One of the first requirements for exporting dictated by the Singapore government is to have our company ISO 13485 Certified. We have completed ISO certification. ISO is the International organization of Standardization, which was formed in 1947 in Switzerland. The purpose of ISO is to help facilitate trade amongst global exports.
Basically, ISO 13485 was taken directly from ISO 9001, both are numbered in the same fashion with some slight differences. ISO 13485 has a special set of requirements that is specific to the export of medical devices. It is estimated that only about 15 major exporting companies have ISO 13485 in Singapore. (who are they – do they carry competing products? ) The advantage to be had with ISO certification is that it would open doors for trade and keeps our company up to standards with the global trade world. Our logistics plan will be our strong selling point.
We have created a supply chain that is easy for our customers. We value our customers and their business, that is why we have simplified the terms of sale. We will implement a Delivery duty paid (DDP) to help our customers ease in doing business with us. We will bare all the risk and offer a generous term of payment. You guys are really nice! Our marketing entry strategy focuses on our customers, and what theithe value of there businessr business means to us. We value the customer relationships, customer standards, and making it easy for our customers to do business with us.
Placement, Promotion and Pricing Marketing channels As one of the top leading providers of medical syringes to hospitals and clinics, Medical Syringe Co sees that the practice of product placement is significantly important when advertizing in Singapore. We have tried to place our syringes in as many hospitals and clinics as possible in order to get our brand well established and known by the consumers. We are doing this trough the use of the industrial products channel system, where we have Distributors in Singapore that specialize in providing and servicing our syringes.
The way this process is done is simple, we have agents throughout Asia, which take orders from the distributors and then deliver the syringes to Singapore. The distributors then take the lead and satisfy the hospitals and clinics need’s by delivering the requested products. Promotional techniques When choosing our promotional techniques we assessed all the marketing communication opportunities, and then analyzed the marketing communication resources in Singapore. By doing this we found that the best and most effective way to promote and sell our syringes was trough the process of offering free samples to hospitals and clinics.
This was mainly done by personal selling, where we sent outside sales representatives to meet one on one with the Doctors and provide them with positive information about our syringes. We examined this process and found it extremely effective. Since, most Hospitals and Clinics feel a high degree of comfort when the product was tested in their premises by their own Doctors and satisfied their needs. Medical Syringe Co. also uses other promotional strategies, such as placing advertizing in Medical Magazines and in several Television channels in Singapore. Medical Syringe Co. Advantage and Safety.
The advantage that Medical Syringe Co. has is that our production plant is fully equipped with in-house facilities that rely upon advance engineering and state of the art manufacturing technology. The entire product line is subjected to stringent quality control at all manufacturing stages to ensure conformance to safety standards & product specifications before distribution to medical facilities. One of the most important factors in regards to our company is that is meets Singapore Standards and achieve international quality standards such as ISO 13485, IEC 60601 and GLP.
This assures us a great place in the competitive industry of the medical equipment field. At Medical Syringe Co. every syringe is subjected to extensive quality control procedures and all Syringes are tested to ensure high expectations of precision and accuracy. We currently offer the most complete selection of syringes on the market, that include Environmental Syringe, Gastight and liquid syringes for chromatography MicroLiter Syringe, MultiPak Syringe, and Syringe Terminations. Pricing, terms of sale and terms of payment Medical Syringe Co. offers great pricing and flexible terms of sale to our consumers.
Our prices vary from $0. 12 per Syringe to $30. 00 per Syringe, depending on the model. We currently have a great competitive price in compare to the others Syringes manufactures in Singapore. What really helps Medical Syringe Co. is the Flexibility in regards to terms of sale that we offer the Hospitals and Clinics. Our company follows INCOTERMS (D Terms) Delivery Duty Paid, whereby Medical Syringe Co. bears all costs and risks to deliver the goods to Singapore. When selling our syringes we offer many types of incentives to the purchasing Hospitals and Clinics depending on the amount and quantities purchased.
Usually the higher the quantities ordered the more discounts they receive on our syringes. Medical Syringe Co. also offers its customers great terms of payments, such as 60 Days and 90 Days terms. We do this to facilitate the buying process and obtain loyalty with all our customers. Organizational Resources Needed to Implement Plan The topmost priority will be to establish an internal exporting unit. The purpose for distinguishing this unit is to reinforce the fact that exporting function needs a formalized structure for operation with personnel that have expertise in the field.
The exporting unit will serve four main objectives. The first objective is to understand Singaporean business laws and export regulations as they relate to exporting. By researching and analyzing the legal workings of the business environment, we Medical Syringe Co. will be better able to align our Medical Syringe Co. internal business processes and strategic goals. This will not only serve as a tool for achieving short term gain but also for increased market expansion. The second objective will be to properly handle all required documentation and paperwork.
Besides the legal system, it is also imperative to understand the business requirements for continued operability and growth. Much attention will be given to Singaporean business protocol and maintaining a valid business presence. The third objective will be to appoint and decide local distributors for our Medical Syringe Co. products. This means that we Medical Syringe Co. will initiate and manage business contracts with local organizations that have the capabilities to perform in accordance with company policy. The local distributors will inventory and warehouse specified products.
We (our company name) will not dictate the final sales price, however we Medical Syringe Co. will decide on a transactional process for the placement of orders. In turn, the distributors will follow a pre-determined methodology for assisting customers. The fourth objective will be to identify our potential clientele in the Singaporean provinces. Although our appointed distributors will shoulder much of this task, it will be beneficial for Medical Syringe Co. to ensure particular customer have been contacted and formally introduced to our company and products.
Having good relations with our clientele means that our products will be better perceived. Our next priority to implement the organizational strategy plan is to establish a Foreign Relations Representative Office. Again, it is understood that the local distributors will manage the customer transactions, but Medical Syringe Co. feels it is imperative we have a local presence. This will allow us to keep a perspective on ground realities and current trends in the medical sector. There are four major objectives for the Representative Office.
The first objective will be to serve as a local communication center. The Representative Office will communicate vital local market information including current and upcoming medical trends, medical practices and laws governing the medical usage of certain products and technologies. The second major objective would be for general marketing purposes. Although the local distributors will assist Medical Syringe Co. in establishing marketing campaigns, it will ultimately be Medical Syringe Co. job to track the effectiveness of these campaigns.
The Representative Office will need to study the local market demographics to fully understand how to implement a measurable campaign. Then from this analysis, Medical Syringe Co. will be able to decide what content will be most suitable to get the attention of potential clientele. The third objective of the Representative Office will be to perform a cost-benefit analysis of the new export operation. The cost-benefit analysis will be performed for the products Medical Syringe Co. offers based on revenue data. It will be helpful to also compare revenue figures to the cost of keeping Medical Syringe Co. distributor relations.
The last major objective of the Representative Office will be to serve as a customer service location. This obviously does not entail outgoing sales, but mostly for customer retention measures. It will be important to follow up with important clientele and ask for their feedback in terms of how well Medical Syringe Co. and Medical Syringe Co. products are working for them. Additionally, it will be helpful to field technical questions or comments that our local distributors cannot handle. Our third priority for implementing the organization plan will be to appoint a company liaison for Medical Syringe Co.operation in Singapore. It is imperative to have an individual oversee our export operation in Singapore and report back to the main headquarters with regards to local ground realities.
The first major objective of this appointing such an individual is to have a direct connection between headquarters and Representative Office. Since the individual will be well versed in the company goals and company export strategies, he or she will be in charge of communicating the goals and business procedures to the employees of the foreign export operation.
It is imperative to align the company values and business performance standards to the foreign export operation. This will ensure that the work ethic and task diligence is taken seriously. The second major objective is to have the liaison travel every six months to the Singapore operation. The main purpose of doing this would be to have the liaison inspect the business aspect of the Representative Office and take care of financial matters dealing with employees or distributors. His or her responsibility would also be to study the product selling reports and cost-benefit analysis prepared by the Representative Office.
The third major objective of the liaison is to have him or her be the primary networking contact for the Singapore operation. The liaison will meet with local partners and industry representatives to discuss current issues in the medical sector, the market conditions for medical devises and forthcoming products that Medical Syringe Co. will be offering in the future. Implementation Timeline Medical Syringe Co. estimates that within a two-year timeframe, Medical Syringe Co. we will be established in Singapore with a handful of clients. Within the first six months of the two year timeline, Medical Syringe Co.
we will have an internal export department. These six monthsThis time will be utilized used to accomplish the first priority as mentioned in the Implementation Plan. The next year and a halfThe following year our focus will be to will be utilized to set up a foreign export office in Singapore. This time will be utilized tohelp accomplish the second priority as mentioned in the Implementation Plan. The last six months of the two year timeframe will be utilized to appoint a company liaison for the office in Singapore. This time will be utilized to accomplish the third priority of the Implementation Plan. Exit Strategy.
In order to have a planned and smooth exit from the local Singaporean market, Medical Syringe Co. has devised three strategies. These strategies will ensure that Medical Syringe Co. will spend the shortest amount of time in the exit mode but more importantly have a monetarily beneficial pull-out. The first strategy is to sell the local operation. Selling the foreign export operation can be done to two different types of business organizations. The first organization that Medical Syringe Co. has identified are Venture Capital firms. The Venture firms will most probably attempt to find a suitable owner or manager to take over.
The second organization is a local competitor or company in the same industry. These organizations already have vested interests in increasing market share. The second strategy is to initiate a merger with a local company. Having initiated a merger, the buying company will become the main business entity. This will include rights to take over the decision making and policy formation. However there are two conditions. The first condition is to purchase Medical Syringe Co. products for sale. There will be supplementary product training sessions and informational seminars to upsell the products.
The new buyer will have to maintain the same level of product integrity and quality. The second condition is to purchase consulting services for general or technical support. The provided support will cover consulting for a wide variety of topics and includes on-site training for business procedures including market strategizing, market positioning and performance measurement standards. The last strategy is to terminate the export operation in totality. All assets will be sold and the business presence will be dissolved. The proper paperwork will need to be filled out in order to facilitate this type of pullout. Utilizing this strategy will be useful for when there are no interested buyers.
Bibliography Khalik, Salma “Singapore ranks second for people on verge of diabetes”. The Straits Times, December 5, 2006 Journal Commision International “Stop Chasing After ISO Certs” July 21, 2007 < http://www. jointcommissioninternational. com/26601/> Final comments: I am not seeing very much in the way of citing respected sources of information. You need to bolster your strategy and argument with facts and statistics that are specific to this industry- look at www. export.gov, look at medical schools or journals that address the Singapore market – consider looking at articles that address Singapore’s share of the “medical tourism” market.
You also need to work on the grammar and eliminate redundant verbage Overall Suggestion Define the opportunity broadly (which you have done)– boil it down to a market segment and explore that market segment – giving enough detail so that we (the audience or readers) feel as if you have become experts on this topic – which wont take much because none of us really know this topic well – but it seems you have a little more work to do before it is convincing.