Collagen patches for countries in the Bottom of Pyramid Harvard Case Solution & Analysis

Collagen patches for countries in the Bottom of Pyramid

The focus of this report is on the Indian Advanced Care Market for introducing a new collagen dressing targeted towards developing countries mentioned at the end of the pyramid in terms of per capita income. The Indian market for Wound Care is expected to reach approximately 22 billon Indian Rupees by 2019 and there is a greater need for organized players in the market owing to the increase in lifestyle diseases and healthcare expenditure in this region. Collagen patches for wound care focus on a niche market in terms of covering wound types including foot ulcers, minor burns, large open cuts, bed sores and chronic wounds.

ith benefits like reducing the occurrence of wound infections the collagen patch for wound care has become a prominent feature of the advanced wound care market. (David Brett, 2008)

Actors of Supply Chain in Indian Advanced Wound Care Market

Currently the advanced wound care market is dominated by Multinationals with the local players only offering limited presence. For Multinationals with limited presence in India, the distributor acts as the extended arm for marketing and distribution of products. Currently the foreign manufacturers do not have a well-established relationship with retailers in the wound care market so the distributor is the dominant force in the supply chain.

The major influencer involved in the usage of a particular brand of advanced wound care product is the doctor himself and he bases the prescription on two factors namely the affordability of the patient and the prior performance of the product . Hospitals will stock more of the product which has repeat sales. So it’s basically the distributor acting as the bridge between the manufacturer and the buyers with two types of buyers namely the pharmacies and hospitals. Appendix 1 shows this supply chain(RedSeer Consulting , 2011).

Competitors and Substitutes

Collagen patches have substitutes in the form of hydrogel patches, foam dressings, film dressings and other minor substitutes depending on the type of wound being treated. We could say that direct substitutes are other collagen patches used in advanced wound care . As per appendix 2 it can be seen that the collagen dressings make up the major segment of the advanced wound care market.

Currently the major brands being stored by hospitals are Johnson & Johnson and Dr. Reddy for collagen dressings. Johnson & Johnson also dominates the market for products such as film dressing, active dressing and foam dressing. Similarly, Dr.Reddy is a major player for hydrogel dressing as well other than the collagen dressing. It can be seen how both players are competing in the collagen dressing segment but are not competing in other advanced wound care products in the Indian market.

Currently there are several types of collagen dressings available with changes in specifications as per concentration and type. Additional characteristics which differentiate products from one another include flexibility, comfort and absorbency levels which may increase depending on the additional ingredients used in the dressings. (RedSeer Consulting , 2011)

Smith & Nephew is another major competitor in the advanced wound care market but is currently dominating the market for hydrogel dressing.For a summary of the competition in the Indian advanced wound care market, refer to appendix 3 which shows the level of competition with the help of Porter’s five forces analysis. As per this analysis it can be seen that the supplier has a low bargaining power and the two types of buyers, namely the retailer and the patient both have low bargaining powers. The hospital enjoys a high bargaining power owning to the involvement of doctors. It is a highly competitive market but with significant barriers to entry .Additionally, the market has a high threat of substitutes since collagen patches have alternatives which can be substituted for wound care....................

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