Resmed Case
Product Development and R&D strategy, patents
ResMed developed a CPAP device to help prevent OSA in those patients with sleep apnea. 30% of CPAP patients discontinued therapy b/c of the discomfort of having constant air pressure delivered to them. ResMed saw the need to develop VPAP which varied the air pressure during exhalations. Ultimately, they wanted to create AutoSet which sensed and delivered the appropriate air pressure to the patients. However, the patents for this device were not filed in a timely manner. This opened up the doors for competitors (Respironics) to enter this market. ResMed did file a suit claiming that Respironics infringed on their patent. However, Respironics convincingly argue that their devices did not infringe on ResMed’s proprietary device and the court ruled in their favor. ResMed failed to bar Respironics’ entry into the CPAP/OSA market as well as prevent imitation and substitution of their CPAP device. ResMed was aggressive in their R&D (spent heavily), but brought products to market late. They often pursued several simultaneous projects through 3 departments (Mechanical design, electronic development and software development). Examples of these were VPAP to provide therapy to a larger group of OSA sufferers and to expand into other areas of respiratory therapy. They consistently feel behind their Respironics in delivery products to the market.
Market Selection
Selected OSA/SDB market as approx. 2% of population was possible candidates for CPAP therapy. This was ResMed’s initial target market. They started in Australia, but then expanded into other countries such as Germany and eventually to the US. The branched into emphysema, CHF, stoke therapy and other pulmonary diseases. They focused on the facemask market where they were very successful. Also looked to provide an alternative treatment for Cheyne-Stokes respiration.
Market penetration and adaptation
They established sales offices and
ResMed developed a CPAP device to help prevent OSA in those patients with sleep apnea. 30% of CPAP patients discontinued therapy b/c of the discomfort of having constant air pressure delivered to them. ResMed saw the need to develop VPAP which varied the air pressure during exhalations. Ultimately, they wanted to create AutoSet which sensed and delivered the appropriate air pressure to the patients. However, the patents for this device were not filed in a timely manner. This opened up the doors for competitors (Respironics) to enter this market. ResMed did file a suit claiming that Respironics infringed on their patent. However, Respironics convincingly argue that their devices did not infringe on ResMed’s proprietary device and the court ruled in their favor. ResMed failed to bar Respironics’ entry into the CPAP/OSA market as well as prevent imitation and substitution of their CPAP device. ResMed was aggressive in their R&D (spent heavily), but brought products to market late. They often pursued several simultaneous projects through 3 departments (Mechanical design, electronic development and software development). Examples of these were VPAP to provide therapy to a larger group of OSA sufferers and to expand into other areas of respiratory therapy. They consistently feel behind their Respironics in delivery products to the market.
Market Selection
Selected OSA/SDB market as approx. 2% of population was possible candidates for CPAP therapy. This was ResMed’s initial target market. They started in Australia, but then expanded into other countries such as Germany and eventually to the US. The branched into emphysema, CHF, stoke therapy and other pulmonary diseases. They focused on the facemask market where they were very successful. Also looked to provide an alternative treatment for Cheyne-Stokes respiration.
Market penetration and adaptation
They established sales offices and