Executive Summary
Purpose
Business plan for MediaCorp to enter Spain with about $0.090 billion markets for neonatal specialized prenatal devices through a strategic alliance with the local pharmaceutical firm. The growth and use of neonatal ad prenatal devices in a nation that values such treatment are summarized in this paper. Medical professionals have been able to better care for the unborn throughout the latter stages of pregnancy and labor because of the device’s ability to detect and track the fetus’s heart rate and rhythm. The advent of fetal monitors has also allowed medical professionals to track newborns’ heart rates more closely. To that end, the paper will provide an assessment of the feasibility of entering the Spanish market for fetal monitors.
Methods
This business plan has been prepared after carefully considering the available data online on the need for fetal monitoring devices in Spain, the current state of the market, and the estimated costs and advantages of bringing these products to the country. Online data sites and pertinent secondary materials have also been scoured for information on the prospective target customers, customers, limits, and success of MediaCorp devices in the country.
Findings and Conclusions
According to studies conducted in Spain, there has been an ever-increasing demand for prenatal and neonatal equipment due to the growing knowledge of heart monitoring devices, the increasing prevalence of premature births, and the growing interest in diagnostics. Low birth rates in wealthy nations like Spain have restricted the market for fetal monitoring equipment, despite rising demand among locals. By raising awareness about their devices’ significance and working with regional and national governments to reach people in Spain, MediCorp Inc. has become an essential firm providing a solution to fetal cardiac abnormalities and care for unborn fetuses. Therefore, MediaCorp is free to continue selling its medical equipment nationwide.
Recommendation
To create a community that is both healthy and secure, MediaCorp should work closely with Spain’s hospitals and government. In order to cut the global health budget and create a new market for the MediaCorp firm, it is necessary to educate the public and foster an atmosphere conducive to the usage of fetal monitor gadgets in the nation.
Introduction
The demand for obstetric care, both during childbirth and throughout pregnancies, among Spanish women has been rising steadily in recent years. The nation’s growing number of premature babies has given people the significance of prenatal diagnostics and therapies. The increasing prevalence of congenital cardiac disease in infants and children, as reported by Pérez-Lescure Picarzo et al. (2018), has resulted in a coordinated effort to screen fetuses for the condition. Spain’s municipal and national governments have been working to reduce infant mortality by raising public knowledge of the need for fetal heart monitoring in the latter stages of pregnancy and during delivery. Between 2003 and 2012, there were 4,766,325 live births; of them, 64,831 were analyzed by Pérez-Lescure Picarzo et al. (2018). Since there have been more premature births recently, it was expected that the prevalence of congenital and perinatal cardiac defects would grow.
Despite the government raising health funding to advise its residents against the condition (Pérez-Lescure Picarzo et al., 2018), the incidence rate of congenital cardiac problems in Spain was 13.6% from 2003 to 2012, as shown in the research. The prevalence of congenital cardiac disease in adults has consistently outpaced that in infants and the fetus, as shown by the research group Rubinstein et al. (2014). (Oliver Ruiz et al., 2020). Up to half of all congenital impairments may be traced back to CHD, making it the single most lethal congenital disability in the world. However, due to increasing knowledge of cardiac monitoring throughout pregnancies and deliveries in most affluent nations, infant incidences have recently declined (Gilboa et al., 2010). Only 30% of children survived to maturity in the recent past due to the prevalence of congenital cardiac disease, as reported by Lopes et al. (2018).
Nonetheless, with the advent of neonatal or prenatal intensive care, this percentage has risen; nowadays, at least 85% of children may survive to adulthood. Necropsies of babies, neonates, and stillbirths have been linked to at least 85 percent of pediatric and adolescent cardiac arrest fatalities (Lopes et al., 2018). According to health experts, a different approach to lowering global heart disease mortality rates would be to improve care quality, expand community capacity development programs, and foster cooperation between health and educational institutions. By promoting and increasing sales of fetal assessment equipment, the medical firm MediaCorp is in a prime position to reduce the number of preventable fetal fatalities. It will not only help the company expand into new markets but also help the world’s health problems.
Marketing Strategy
Market Analysis
The 2020 United Nations estimates put Spain’s population at 46,794,371, making up around 0.6% of the world’s total ( Spain Population, 2020). It was also found in the same survey that 80.3% (or 37 million) of the population was concentrated in urban regions. It was found that the median age of a Spanish resident was 44.9% ( Spain Population, 2020). The newborn and child mortality rate is between 2 and 2.4 per 1000 births. Romero (2022) estimates that by 2027 the population will have increased to 48.47 million, which might lead to a larger need for MediCorp’s medical equipment. There are 1,186 daily live births, which is good news for the fetal monitoring device industry. Additionally, it will be suggested that MediaCorp place a greater emphasis on selling its medical gadget in metropolitan regions, where a larger concentration of people dwells.
Characteristics of Potential Customers
When trying to reach the ideal market, MediaCorp must have a clear notion of whom that market is composed of. Sales of innovative medical equipment may be boosted by assessing the prospective market and characterizing it geographically and socially. Prevalence rates of CHD in Spain are 0.8% of live births, as reported by Llamosas-Falcón et al. (2019). However, the prevalence rates are greater in low-income groups. It is important to classify the prevalence of fetal mortality based on socioeconomic and geographical factors since the poorest areas reported more fatalities than the richest regions. Conversely, CHD is a leading cause of mortality for both young people and adults of both sexes in Spain, making it a serious problem for the country’s overall health. According to the same research, tetralogy of Fallot accounts for 0.41% of all cases of congenital cardiac disease. As a result, MediaCorp should prioritize providing aid to the newborn population in Spain.
Marketing Strategy for the Target Customers
MediCorp has to use a perfect advertising plan to win over the specified medical gadget market. Because of its high birthrate and growing awareness of the need for comprehensive fetal care, Spain has been pinpointed as a promising market. Before breaking into a new market, a business should thoroughly analyze the prospective clients there (Rojas-Roque et al., 2022). As a result, the selected gadgets will be used in metropolitan areas throughout Spain to track the progress of the fetus right up to the moment of delivery. There is a good likelihood of a growing population in the nation, as shown by UN statistics; this might mean more business for companies producing fetal monitoring equipment. The most effective strategy for promoting the MediCorp product in the nation will be to use online marketing channels. For maximum success, the MediCorp company should advertise fetal monitors on numerous social media sites, as well as in local media outlets and on posters placed in urban health care institutions, to raise public awareness.
The potential for reaching the greatest number of prospective clients increases when health systems, localities, and MediCorp promoters work together. The group has to ensure these hospitals and clinics are OK with having educational materials on fetal monitoring posted on their websites and social media pages like WhatsApp, Facebook, Twitter, and Instagram. Since most Spaniards now get their news and information online, spreading the word about this tool is a great way to get more people to see it.
Statista (2022) states that at least 60% of Spanish internet users are also active on Facebook. This is a substantially larger proportion, suggesting that community capacity development projects consider using the platform to reach a wide audience. Also, there is Facebook and Instagram. The Spanish market has at least 48% penetration, and this number rises when you include the popularity of Messenger and Tiktok. Therefore, the fetal monitoring system’s e-marketing plan needs to include the use of social media to raise public awareness (Statista, 2022). Kemp (2022) reports a dramatic surge of 355 thousand internet users in Spain between 2021 and 2022. Because of this, there was clear room for expansion in the market for MediaCorp’s medical equipment as knowledge of it grew.
Governance and CSR
Although the people and government of Spain will value MediCorp’s medical gadgets for their ability to alleviate the health care system, the company might still benefit from focusing on strengthening its strengths and minimizing its weaknesses. As a company, MediCorp will need to focus on value addition and cost advantage if it wants to keep growing and satisfying its clientele. Adding value ensures the product exceeds the expectations of prospective buyers. Adding value, as Hayes (2022) argues, provides prospective buyers with a fresh justification to make a purchase. As a result, it guarantees the item is constantly advertised, which is crucial for bringing in consumers over time. Therefore, the MediCorp corporation should consider maintaining the fetal monitor’s brand name and marketing it to consumers.
Expense advantage technology is another approach; in this case, the organization must make the cost of addressing the need affordable to more people. Fetal monitoring must be affordable so that people with lower incomes can buy and use the medicine. To stay ahead of the competition and at the top of the market, MediCorp has to spend substantially on research to find the most cost-effective service method. By working with state and federal agencies, MediCorp can keep its prices below those of prospective rivals while reducing product taxes. MediCorp may also think about opening a shop in Spain to cut down on expensive import fees and undercut rivals in the market.
The device’s value may be increased by keeping the brand name and adding the ability to monitor the heart rates of both the mother and the infant through a Bluetooth connection that can send signals to a smartphone. Through this enhancement, doctors may get patient feedback without meeting with them in person. As a bonus, keeping in touch with mobile phones makes it possible to track people’s heart rates 24/7. The company should look at measures to guarantee that the medical gadget can convert messages into commonly used languages readily comprehended by customers. Customers are less likely to go to a healthcare facility for heart rate checks if the fetal monitor can be connected to a mobile device and easily analyze the data. Since pregnant women may now examine their heart rate findings at home, fetal heart monitors have become essential in the battle against national sickness and the spread of airborne disease and congested healthcare facilities. The five poster forces strengthen MediCorp’s competitive position in Spain.
Potter’s Five Forces Model for Competitive Advantage
The five-star team has been instrumental in increasing MediCorp’s competitive edge in Spain. The strengths and limitations of MediCorp’s organization in Spain throughout the rollout of the fetal monitor device are shown by this instrument. Scott (2022) defined it as the presence of rival businesses in the market, the possibility of new entrants, strong suppliers, influential customers, and the risk of substitute products.
Competition in the Industry
This aids in gaining access to the market’s supply of identical equipment and goods, increasing fetal monitor price competitiveness. According to a market study, the fetal monitoring market is now worth USD 5.2 billion and is projected to grow at a CAGR of 7.2% between 2018 and 2026. (Heraldkeepers, 2022). According to the same survey, the demand for fetal monitoring equipment is rising across Europe and North America. On the other hand, MediCorp faces competition from companies like GE Healthcare LLC, Philips, and ArgoHuntleigh, a well-respected leader in the Spanish fetal monitoring system equipment market. There is also a need to develop a competitive edge to fight competitors in Spain like Johnson & Johnson, Abbott, Medtronic, and Hoffman, all of whom provide comparable services.
Potential New Entrants
This necessitates investigating the availability of niches in the market and the possibilities of new entrants. Since MediCorp is already struggling to outperform the market thanks to competitive advantage strategies, it would do well to shift its attention to the possibility of new entrants. Considering the rising incidence of heart rate-related complications during pregnancy in Spain, it stands to reason that other businesses would want to enter the fetal monitoring industry and compete with MediCorp. However, the demand for fetal monitoring is expected to grow with time, giving MediCorp a leg up on the competition. With Spain’s population increasing, there are certain to be more businesses in the market for their services. MediCorp will look at methods to reduce the cost of the fetal monitor to increase its part of the Spanish market. MediCorp will be able to cut manufacturing costs and market prices because of economies of scale and the establishment of MediCorp branches around the nation.
Threat of Substitution
Substitution risk arises from the chance that pregnant women in Spain may choose instead fetal monitor services and equipment offered by MediCorp’s rivals, such as GE Healthcare LLC. Generally, consumers will choose the option that maximizes their enjoyment at the lowest price. However, MediCorp will successfully attract clients because of its competitive advantages, such as strengthening its brand and providing more value to its products. MediCorp’s long-term success depends on its ability to win the loyalty of its clients and keep them as paying customers.
Supplier Power
The supply chain’s influence on the market pricing of specific goods and services in a country is best shown by the concept of “supplier power.” Pregnancy monitoring equipment sales in Spain are rising, making the industry attractive to established companies and startups. The suppliers’ ability to apply pressure in business via the management of pricing and quality of their suppliers has been weakened by the rise of new sectors in Spain that make fetal monitoring equipment. As a result of weak supplier power, MediCorp Inc. will have an opportunity to grow in the nation.
Buyers Power
As a result of their purchasing power, Spanish consumers can influence the fetal monitoring equipment industry and shape its direction and pricing structure. The intricacy of the issue has led to a growing population in Spain that needs fetal monitoring equipment. However, the existence of alternatives from businesses offering comparable solutions raises the possibility of robust buyer leverage. MediCorp can reduce the purchasing power of Spanish consumers due to the value it adds. In addition, customers have a hard time finding viable alternatives to what MediCorp provides because of the cooperation of local and national governments, healthcare, and educational institutions.
Financial Projections
Despite rising health care expenses, Spain is emerging as a major global medical device industry opportunity. Growth in the Spanish market for medical devices is anticipated to be healthy during the next three years (MarketLine, 2019). The rising prevalence of interest in wellness has stimulated the development of this industry. Even though the medical products market in Spain is worth a billion dollars annually, MediCorp’s entry into the market with the Holter monitoring device is not anticipated to generate particularly large profits. After three years of intensive R&D and partnership building, MediCorp will determine whether or not to continue with the business. Taxes on medical items imported into Spain might go as high as 18%. MediCorp expects to sell 6,000 Holter monitoring devices in Spain for USD 2,500 per unit in the first year, which is an average of 500 units per month, while it works to establish itself in the market over the first three years. Also predicted are increases of 6% in the second year and 8% in the third. Based on this information, the business anticipates a first-year revenue of $15,000,000, a second-year revenue of $15,900,000., and a third-year revenue of $17,170,000. My forecast for the company’s net profit margin throughout the first three years of operation is 33%, 35%, and 38%, respectively.
Estimates of a company’s market share might help executives plan for future success. We will utilize the estimated 600 million people in the target market as our baseline for valuing our current customer base. To get a more precise estimate, it is necessary to account that not all members of this demographic will buy the product. Only 120 million individuals were diagnosed with diabetes so far in 2019. (Mordor Intelligence, 2020). As a result, MediCorp is not just reaching out to impacted people but also to others who are at risk. The proportion of the population aged 16–59 likely to buy the device is thus calculated to be 16.67%.
Strategy Implementation
MediCorps’ top priority is providing cutting-edge, non-invasive monitoring device technology for cardiovascular conditions. Holter monitoring equipment is expected to revolutionize patient care. In order to succeed, the business must put the health of its customers’ hearts first. MediCorps’ initial goal is to register their company with Spainian authorities to begin doing business there. For MediCorp’s entrance into the Spainian market, I propose forming a strategic alliance with a domestic pharmaceutical company. Researching the market’s current state, dynamics, and potential for success will take considerable time.
In order to promote and distribute the product in Spain, MediCorps must first get a licensed base and engage in a strategic agreement with some of the hospital systems. Due to its inclusion in strategic alliances and joint ventures, the country’s healthcare system will be assessed for efficacy to gauge the potential benefits and downsides of expanding into foreign markets (Modes of entry, 2020). After making a splash in Spain, Medicorp must stay true to its customer-first roots. In order to secure the correct use of the product, the Spainian team will first need to educate the market. They will also spread the word about the warning signs and symptoms of cardiovascular problems to further this goal.
Finally, MediCorps will make it a priority to keep cardiovascular problems under control around the clock. Finally, we will stress the customer’s value of having some say in the process. Together, these factors would determine how much consumers are prepared to pay for the benefits provided by the product. Each company’s many different efforts in R&D, manufacturing, advertising, distribution, and support contribute to the competitive edge it enjoys. The product’s worth depends on how the latest technological advancements will benefit consumers in the long term.
Adding value is one strategy MediCorp will use to give itself an advantage in the market. First, supply the Holter Monitoring Device at a reduced price to hospitals in outlying locations; second, sell the equipment at a premium price to medical professionals and hospitals in major cities; and third, prioritize an integrated marketing communications plan to promote the device.
MediCorp plans to differentiate its goods in the market by superior quality, widespread recognition, and user-friendliness, a method known as a niche differentiator (UMGC, 2020b). MediCorp’s “one look” strategy involves having all marketing materials have the same logos, colors, and visuals to create brand recognition and attract clients (UMGC, 2020a). This will aid in building brand loyalty that leads to successful market expansion. All PR and advertising will use the same method of one look. To adapt to the Spainian public’s rapid adoption of new technologies, we plan to use social media advertisements. With this marketing and public relations plan, we want to provide our medical products with a level of exposure that is now unavailable. With this plan in place, MediCorp can distinguish itself from its rivals and get an advantage in the marketplace.
Conclusion
When entering a new industry, it is important to have a well-thought-out company strategy that will help you overcome obstacles and emerge victorious. Growing demand makes the new international markets perfect for MediCorp’s business model. To not only attract consumers but also endure difficulties in the new environment, it must be able to compete with the current domestic industries and fulfill the highest expectations of customers. In addition to setting up shop in the fetal monitoring market, MediCorp will have to strengthen local institutions, adapt to unfamiliar cultural norms, and overcome existing companies’ advantages in the industry. MediCorp’s leaders face challenges from the presence of other sectors that provide comparable goods because of the company’s need to attract and retain clients. In a highly competitive market, MediCorp can keep its consumers by providing added value, establishing its brand, welcoming diversity, and constantly improving its services. Community capacity development in Spain is an exceptional opportunity for MediCorp to partner with healthcare providers and state and federal governments to create a more secure population.
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