Case Compendium for Consulting Interview Question - Growth Strategy for Medical Device Manufacturer

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Case in Point: Complete Case Interview Preparation - Growth Strategy Interview Question 

Growth Strategy for a Medical Device Manufacturer

Interviewer: Our client is a medical equipment manufacturing company. It has developed a new product that provides comfort to patients during surgeries. Please devise a strategy to help them grow this product. 

Growth Strategy for Medical Device Manufacturing Company


Priyanka: I would like to ask a few clarifying questions to understand the client’s business better. 
Interviewer: Sure. 
 

Priyanka:  First of all, I would like to know more about the product. How does the product work? What is the price of the product? 

Interviewer: The product is made from a technology that provides healing through temperature control. The product is priced at INR 15000 per patient. 

 

Priyanka:  Are there any competitors selling similar products in the markets? Or do we have any substitutes? 

Interviewer: No competition as such. But the closest substitute is a blanket. 

 

Priyanka: In which geography, is the client operating? In which part of the value chain is the client operating? Does the client only manufacture the equipment or distribute it as well? 

Interviewer: The client operates in Bangalore. The client owns both the manufacturing and distribution of the product. 

 
Priyanka: Are there any financial or resource constraints that I should consider before evaluating the growth options? 

Interviewer: No, you can assume there are no constraints. 
 

Priyanka: That’s great. Now I would like to look at the different ways in which our client can grow this product. 

  • - Increasing awareness of the product in Bangalore 

  • - Expansion in new geographic areas

Interviewer: Let's explore each one of them one by one. 


Priyanka: We can do a quick market sizing to see how much growth we can get in Bangalore? 

Interviewer: I don’t want the numbers can you help me with the thought process. 

 

Priyanka: In a city like Bangalore, there will be approximately 10-15 big multi-specialty hospitals like Fortis, Apollo, Columbia Asia etc. 

Our client should be able to target these hospitals to sell their products primarily for the following reasons: 

  • - Affordability: Patients in such hospitals will be able to afford the product for healing post-critical surgery. We can also think of targeting specific segments like senior citizens or patients in ICU as they need more support & care. This product can reduce discomfort and smoothen their journey of healing. 

  • - Reach: Let's say if doctors/patients in a particular branch of Apollo like this product, it becomes very easy for the client to sell it to other branches of Apollo located in Bangalore. On top of that Apollo is in most of the top-tier cities so our client can easily sell the same product in other cities as well. 


Interviewer:  How would you approach these hospitals? 
Priyanka:  

  • - We can push our products to doctors through medical representatives.  

  • - We can also increase the awareness of our products through seminars and conferences where doctors from these hospital visit.  

  • - I can also think of partnering with Insurance companies, who can sell this product as part of Insurance coverage itself. 

 

Interviewer: Ok if the client were to enter some city in India, what will you suggest? 

Priyanka: The client can think of Tier-I cities like Delhi, Mumbai, Chennai, Hyderabad, etc. Delhi being the capital city of India has several renowned hospitals and medical institutions like AIIMS, Apollo, etc. 

Mumbai being the financial hub has hospitals that offer cutting-edge medical facilities. Chennai is also popular for being the hub of medical tourism. The client can consider and evaluate these Tier-I cities. 

 

Interviewer: Ok what if the client wants to expand outside of India? 
Priyanka: Assuming, there are no financial constraints, our client can think of taking this product to countries like the US, and Singapore which are popular for healthcare facilities, advanced medical technology, and skilled doctors. In these countries, since most of the cost is borne by the insurance companies the client can partner with the insurance company. 

However, there could be challenges like government regulations, patents & copyright, healthcare norms, pricing, competition angle, supply chain challenges, etc. which our client should keep in mind. 


Interviewer: Thanks, this is what we also suggested to the client.

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