Background:

A prominent manufacturer of medical diagnostic equipment, equipped with innovative features, needed further market expansion in the global healthcare Industry. It wanted to present a new generation of its AI-powered diagnostic equipment that offered great support in the early diagnosis of diseases

However, it was relevant to conduct a large Total Addressable Market assessment before any serious investment in production and marketing, with a view to understanding the revenue opportunity created by specific geographies and customer segments.

Challenges:

The big challenge was to arrive at a detailed estimate of TAM-one that would not only measure how big the market size would be but also find out which would be the more rewarding segments and regions. Next, it had to identify the competitive landscape, regulatory challenges, and possible entry barriers.

Approach

The following multi-phase approach was followed.

1. Market Segmentation and Analysis:

The market was segmented the global healthcare market by region: North America, Europe, and Asia-Pacific, among others; and by customer type, entailing hospitals, diagnostic laboratories, and specialty clinics.

Most of the secondary research was undertaken through the review of our database of published industry reports and governmental publications, supported with key stakeholder interviews in the healthcare industry.

2. TAM Estimation: We provided the estimates of the TAM for new diagnostic tools by the bottom-up and top-down approaches:

These included prevalence of a disease, rate of diagnosis, healthcare infrastructure, and purchasing power of healthcare providers. Sensitivity analyses were also performed to capture different market scenarios that may prevail, such as health-care policies changing with governments or even economic slumps.
The TAM estimation was based on a combination of multiple estimation approaches, and validated.

3. Competitor Landscape Analysis:

• We assessed the competitive environment by identifying the players, the market share, and their strategies.

• Each company was analyzed for its manufacturing strategy (raw material and manufacturing technology), and import-export data

• SWOT analysis has been conducted to figure out strengths, weaknesses, opportunities, and threats of competitors that have existed already.

4. Regulatory and Market Entry Analysis:

We studied the regulatory framework of every targeted territory, taking account of compliance matters that pertained to medical devices.

We also looked at the barriers to entry, for example, protection of intellectual property, tariffs, and ability to produce locally.

5. Strategic Recommendations:

Under this review, strategic advice on the medical device company using the TAM was provided by us.

We recommended shifting more focus to regions in Eastern Europe where the markets were expected to grow at a high rate in coming years. We also suggested strategic partnerships with local distributors and caregivers to speed their way to the market.

Some of the tools used in the strategy-making in each country of the region included (not limited to):

• XMatrix

• Strategy Map

• Scenario Planning

• Balanced Scorecard

• Business Model Canvas

Outcome: With a proper TAM assessment and our strategy options, the medical device manufacturer could now make far better decisions with respect to its product launch. Based on our assessment, the company decided to enter the North American and Eastern European markets, which have an estimated TAM of more than $2 billion annually. Equipped with strategic recommendations, the company launched AI in diagnostic tools and was able to capture a sizeable market share in the first couple of years of operations. Further, this TAM assessment helped the company in raising further investment rounds wherein the investors were impressed by the depth of market analysis and a clear pathway toward growing revenues.

 Conclusion: The TAM study, therefore, helped the medical device major fine-tune its market-entry strategy in the right direction. We were able to bring out proper quantification of market potential, as well as key opportunities and risks, that allowed the client to make strategic decisions, resulting in a very successful product launch with strong market performance.

Contact Us:
Akash Anand – Head of Business Development & Strategy
info@snsinsider.com
Phone: +1-415-230-0044