E05 HP Sonos 100 Introduction
HP Sonos 100 C/F
Introduction
Section E, Group 5
Abhiram Thejus
Annapoorna Virdi
Deepesh Agrawal
Deepti Chourey
Harsh Gupta
Sruthi Yedla
External Environment
US Cardiology Equipment Market Size: $287mn (35% of (41% of
$2bn))
Technology-focussed market (Mechanical
Doppler-based, Electronic phase array-based)
Highly competitive market
Product Types:
Product Type
High Performance
Medium
Performance
Low Performance
Transducer-based,
Price
Volume Share
%
Revenue
Share %
> $150k
47%
64%
$90k – $150k
16%
17%
$55k – $90k
37%
20%
Regulations in customer industries:
Prospective Payment System - PPS (1983): Reimbursements for tests done based on constantly updated national & regional standard costs, not on individual hospital’s actual costs.
PPS Reforms (1991): Extension of PPS to capital purchases
New method of physician reimbursement (1991): Reimbursement to be done based on actual time and effort devoted rather than
“customary, prevailing and reasonable” fees for a procedure.
Customers: Hospital vs NonHospital For Hospital Customers For Non-Hospital Customers
Customer
types
Hospitals with >100 beds (2000 such hospitals) Group Practices, Health Maintenance
Orgs, Mobile Health Labs, Clinics
Buying Cycle
3-12 months
Variable (Can be even < 30 days)
Sales Focus
For Stage 1: Image quality, reliability, service For Stage 2: Price of equipment
Quality and reliability of image,
Favourable ROI from imaging systems
Product
Demo
conducted by
Trained clinical specialists
Salespersons
• User-friendliness intimately tied to product performance
• Product demonstrations extremely important to seal the deal
• Smaller and medium-sized hospitals often based their purchase decisions on the technology adopted by the larger hospitals, so securing key accounts in large hospitals was critical for buy-in of smaller hospitals
• Non-hospital cardiologist is much different from a hospital one in the sense that he has sound business
instincts
Introduction
Section E, Group 5
Abhiram Thejus
Annapoorna Virdi
Deepesh Agrawal
Deepti Chourey
Harsh Gupta
Sruthi Yedla
External Environment
US Cardiology Equipment Market Size: $287mn (35% of (41% of
$2bn))
Technology-focussed market (Mechanical
Doppler-based, Electronic phase array-based)
Highly competitive market
Product Types:
Product Type
High Performance
Medium
Performance
Low Performance
Transducer-based,
Price
Volume Share
%
Revenue
Share %
> $150k
47%
64%
$90k – $150k
16%
17%
$55k – $90k
37%
20%
Regulations in customer industries:
Prospective Payment System - PPS (1983): Reimbursements for tests done based on constantly updated national & regional standard costs, not on individual hospital’s actual costs.
PPS Reforms (1991): Extension of PPS to capital purchases
New method of physician reimbursement (1991): Reimbursement to be done based on actual time and effort devoted rather than
“customary, prevailing and reasonable” fees for a procedure.
Customers: Hospital vs NonHospital For Hospital Customers For Non-Hospital Customers
Customer
types
Hospitals with >100 beds (2000 such hospitals) Group Practices, Health Maintenance
Orgs, Mobile Health Labs, Clinics
Buying Cycle
3-12 months
Variable (Can be even < 30 days)
Sales Focus
For Stage 1: Image quality, reliability, service For Stage 2: Price of equipment
Quality and reliability of image,
Favourable ROI from imaging systems
Product
Demo
conducted by
Trained clinical specialists
Salespersons
• User-friendliness intimately tied to product performance
• Product demonstrations extremely important to seal the deal
• Smaller and medium-sized hospitals often based their purchase decisions on the technology adopted by the larger hospitals, so securing key accounts in large hospitals was critical for buy-in of smaller hospitals
• Non-hospital cardiologist is much different from a hospital one in the sense that he has sound business
instincts