Medical Equipment

Topics: Medicine, Health care, Medical device Pages: 5 (1266 words) Published: April 10, 2013
Medical Equipment
Mexico imported medical equipment, instruments, disposable and dental products worth US $3.5 billion in 2010. This represented 90 percent of the medical equipment and instrument market and 2 percent of the disposables. Of these imports 57 %, or US$ 2 billion, were of U.S. origin. The main foreign suppliers of medical devices are Belgium, Brazil, Canada, China, France, Germany, Israel, Italy, Japan, Netherlands, South Korea and UK. U.S. medical products are highly regarded in Mexico due to their high quality, after sales service, and price point compared to competing products of similar quality. Consequently, U.S. medical equipment and instruments have a competitive advantage and are in high demand in Mexico. Public health care institutions account for 70 – 80 percent of total medical services provided nationwide while private health care institutions cover approximately 25-30 percent of the Mexican population, including 32 million people with private medical and accident insurance. In 2007, Mexico had 3,140 accredited private hospitals, of which only 80 had more than 50 beds and the capacity to offer highly specialized services. According to the article 83 of the Health products regulation, there is a risk-based classification of medical devices: •Class I devices: Defined as those that “are very well known in the medical field, with proven effectiveness and safety, and that generally are not introduced into the human body.” •Class II devices: Defined as “well known in the medical field, but may have a variation in the raw materials of which they are made, or different component composition or concentration, and that are introduced into and kept in the human body for less than thirty days.” •Class III devices: Defined as “new products or products recently approved in the medical field, or products that are introduced and kept in the human body for more than thirty days. Best Products/Services

Best prospects include the following:
Anesthesia equipment
Electro surgery equipment
Gamma ray equipment
Lasers for surgery
MRI equipment
Patient monitors
Respiratory therapy equipment
Suction pumps
Ultrasound equipment
X ray equipment
5 forces of Porter
Entry of competitors
oMost medical and health care products need to be registered with the Mexican Secretariat of Health (SSA) prior to sale or use in Mexico. In addition, foreign medical device manufactures require a legally appointed distributor/representative in Mexico responsible for the product and registration process. Lastly, there can be delays in receiving registration/marketing approvals from COFEPRIS. •Threat of substitutes

Bargaining power of buyers
Bargaining power of suppliers
Rivalry among power suppliers
Type of organization for the companies
Relationship with transnational’s
Mexico has vast experience in the sector for more than seventy years. In the thirties, the German medical devices were recognized worldwide as market leaders, but in the forties, world war and the consequent suspension of exports from Germany necessitated the search for alternative sources for suppliers to countries like EU, which led to investment companies U.S. manufacturing plants in Mexico, and training of national staff. So in 1941 he won the first syringe generated in the country. However, it was not until the early nineties Mexican exports in devices doctors had a significant increase, driven largely by the entry into force of the Free Trade Agreement (NAFTA). The Treaty also pushed higher levels of investment by American companies in Mexico looking to tap new export opportunities. This process was strengthened in the first decade of this century as compared to the increasing share of manufactures in China the U.S. market, as part of its strategy to reduce production costs, many companies set up or expanded their...
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