Bdvs - Case Study

Topics: Health care, Becton Dickinson, Marketing Pages: 6 (1939 words) Published: May 12, 2012
What are the important changes in the heath care market, and what are the implications for Becton Dickinson (BD) and its BDVS division? Support your position.
There are many substantial changes in the health care market. This includes the economic situation which was followed by a vast decrease and cut down in costs and expenses in hospitals. Consequently, over 100 000 employees were dismissed from their position.

Also, another important change in the health care market was the United States government ending reimbursements to hospitals for Medicare patients being admitted. As a result of this, hospital admissions decreased, as well as length of hospital admissions decreased, and by 1990 hospital beds were prospected to decrease by 400 000.

A very important change in the health care market was the introduction of multihospital chains and buying groups. These organisations purchased supplies and equipment for hospitals through manufacturers and distributors. Preferences and requirements from individuals involved in these industries including doctors, nurses and patients were discussed for purchasing and a fair price was negotiated.

Becton Dickinson and the BDVS division had several implications following the changes in the health care market. Becton Dickinson introduced various effective products and equipment utilised in many areas of the health care market which signified their success in the industry as a manufacturer.

Becton Dickinson introduced evacuated tube blood collection which replaced the needle and syringe method in the health care market. This increased convenience and time saving, as well as lowering expenses.

Becton Dickinson and its BDVS division introduced plentiful blood collection products in the market. This included a wide range of needles and colour-coded tubes. Furthermore, Becton Dickinson introduced a blood collection product named Microtainer which effectively collected blood samples through finger-pricking methods.

Becton Dickinson introduced new products regularly for unique procedures utilised in health care industries such as hospitals and operation surgeries. Becton Dickinson also first manufactured innovative products which benefit doctors in laboratories. Such benefits included the ability to write information of the patient on tubes without distorting the colour or image of the sample in the tube.

Overall, Becton Dickinson and its BDVS division are renowned for manufacturing and introducing innovative, unique and specialised products for various fields in the health care market. Their felt presence in these industries is evident and will continue to drive the manufacturers to positively respond to technology and changes in the market.

How important is the APG contract for BDVS? What is at stake for BDVS in winning or losing this contract? Support your position. The APG contract consists of a large market share within the Health care industry that BDVS also play a part of, BDVS supplies to a lot of distributors where then the sales reps target one on one purchasing in various hospitals known as the bench people. Bench people are known as lab technicians. These people use the final product and will put forward a complaint if unimpressed with the right product, especially when not useful to them. This again, is the influential traits placed by BDVS as the major manufacturer for health care equipment, as they are known to implement new products such as tubes, syringes and needles when demanded from their users. APG have also been communicating with BDVS’s competitors such as Terumo, forcing BDVS to strategically alter their pricing and distribution strategies. However; BDVS have to be careful as their competitors have dropped their prices dramatically. This is to persuade APG in signing with them for the two year contract they have presented. BDVS sells through six national distributors with the remainder of its distribution channels being made up of...
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