Registering with the healthcare systems under which

This preview shows page 10 - 13 out of 18 pages.

registering with the healthcare systems under which the users are registered, it will make it costly for the users to abandon their care plans associated with MediCorp’s CGMSs. Supplier PowerSuppliers are a crucial part of the supply chain, and they can affect the prices of the products and their performance in the market. China is among the most competitive countrieswhen considering the internal business environment. It means that many suppliers are
MEDICORP INTERNATIONAL BUSINESS PLAN 11continuously competing for the available market. The number of suppliers is higher than the entities purchasing the materials because of the extensive manufacturing industry. Therefore, it translates to the fact that the supplier power is low, and they cannot have significant controlover the cost of materials used in making the CGMSs.Threat of substitution The threat of substitution is a component of Porter's five forces determining the probability of customers selecting another product over what MediCorp offers. The threat of substitution is medium because of two main reasons. First, there is high competition, which increases the chances of the targeted audience switching to CGMSs if they do not find significant value to what MediCorp offers them. However, because of the additional value attached to the medical devices provided by MediCorp, customers will enjoy the privileges ofpurchasing its products and increase the chances of consumer loyalty.The threat of new entryA company’s position can be affected by the ability of new companies entering the same market. Chine is often known as one of the most competitive markets because of the number of companies that continuously start competing with the existing ones by benchmarking on the established businesses. It is easy for new competitors to gain entry into this industry, which can affect the market share held by MediCorp. However, it is estimated that as the Chinese population continues to increase, so are the demands for CGMSs in the coming years.Financial ProjectionsMarket Share Estimates Company share estimates are useful strategies for determining how competitive it willbe in a given market. The number of potential customers in the identified market is approximately 600 million, and thus this will be used as the base value of the existing clients.However, not everyone in this population will purchase the product, so it is essential to adjust
MEDICORP INTERNATIONAL BUSINESS PLAN 12this base value to acquire a more accurate estimate. So far, in 2019, only 120 million people were diagnosed with diabetes (Mordor Intelligence, 2020). Considering this, MediCorp is notonly targeting affected people but also individuals with risk factors. Therefore, the estimated people that will highly likely purchase the gadget are a sixth of the general population between 16 to 59, and that makes it 16.67%.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture