solution - New Air - MARKET ANALYSIS Company Analysis New...

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MARKET ANALYSIS Company Analysis - New Air, Inc. was established in year 2001 by a group of leading physicians like Dr. Israel Amirav, Dr.David Groshar, Prof. Newhouse, and Asaf Halamish. - The company initially invented an incubator called “YOZMOT” and later on moved ahead a lot in life support devices, especially for the asthma patients. - The company has a subsidiary called Baby’s Breath Ltd. which has some specialised and unique products for new born babies and the asthma patients and developed Baby Air Mission Statement New Air's mission is to become the leading provider of advanced inhalation and drug delivery products for young children and the elderly that can be used in home care and long- term care environments. Porter 5 Forces Analysis 1. Bargaining Power of Suppliers - There are many suppliers in the market at the competitive prices - There is lot of pressure from the suppliers in respect of increasing the input cost which ultimately affects the cost of goods sold - Switching cost is very high in respect of the change of suppliers
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2. Bargaining Power of Buyers - The buyers are hospitals, nursing homes and private patients - The products are available to the buyers through pharmacies, drugstores and retail chains which offer different kinds of discounts - Customers are very sensitive to pricing - Buyers in emerging markets and developing countries are very sensitive to price changes. 3. Risk of Entrance - Huge Initial Investments - High Investment in technology and Research & Development - Intellectual Property Rights - Highly Regulated Industry - Too many players in respiratory therapies and devices - 4. Rivalry in the Industry - Consolidated market - Cut throat competition in the respiratory devices manufacturers - Industry is expanding in to some new products like genomics 5. Substitutes - Other nebulizers in the market - Oxygen therapy systems
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- Airway management accessories in US and other markets across the world - Now a days people as well as insurers prefer diagnostic tools over the traditional medicines - Many choices are available to the customers and patients in developed countries in respect of the diagnostic tools SWOT Analysis Strengths • Sole “touch free” patient-friendly inhalation device • Unique safe patented technology • Increased therapy efficacy • Cost-effectiveness • May use existing reimbursement mechanism • Does not cause stress or resistance (can treat a baby while asleep) • May be sterilized Weaknesses • Small new entrant in an industry dominated by large manufacturers • No reputation or brand recognition • Scare resources for market entry • Long-term ROI Opportunities • High industry awareness
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• Increasing prevalence of asthma and respiratory disorders • Huge and growing demand •Adults, Senior citizens •Oxygen / Mist •Pulmonary embolism Threats
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This note was uploaded on 05/13/2010 for the course MECH 17657 taught by Professor Ravikant during the Spring '10 term at Indian Institute of Technology, Delhi.

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solution - New Air - MARKET ANALYSIS Company Analysis New...

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