Solutions Lab

Global Competition and Pricing Pressures


Global Competition and Pricing Pressures

The Challenge

The medical device industry is fiercely competitive, with numerous players vying for market share. This intense competition, along with pricing pressures from healthcare providers and payers, can significantly impact profitability, prompting medical device manufacturers to adopt cost optimization strategies.

Intense competition in the global medical device market exerts pressure on pricing and profitability. Companies such as Johnson & Johnson’s medical device division and Medtronic engage in pricing negotiations with healthcare providers and payers to sustain market share and profitability amidst competitive pressures.

The Solution

Capsifi helps by providing deep visibility into the operating model, identifying gaps, duplications, and opportunities for cost optimization.

It also offers traceability throughout the operating model, mapping out the vendor landscape and indicating which healthcare providers utilize specific products. This information forms the basis of data-driven pricing negotiations aimed at preserving market share and profitability.

By providing non-technical and consumable visualizations, Capsifi facilitates cross-functional communication to support effective cost optimization strategies.

Here’s some practical ways the Capsifi platform can address and resolve these industry-wide challenges:

  • Analyze your operating model to identify cost optimization opportunities and increase profit margins
  • Understand your vendor landscape and where it impacts your operating model

Capsifi solutions used
Key features used
Value Streams
Capability Maps
Capability-Based Planning
Value Maps
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Starting your Own Journey

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Gartner disclaimer:

Gartner, Magic Quadrant for Enterprise Architecture Tools, Akshay Jhawar, Gilbert van der Heiden, Andrew Gianni, Andreas Frangou, 12 December 2022.
GARTNER is a registered trademark and service mark and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.