Surgical Stents Procurement Category Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) April 29, 2014 -- The market for surgical stents has a buyer power score of 3.6 out of 5. This score reflects the fact that neither buyers nor suppliers command an overwhelming amount of power when negotiating supply arrangements. According to IBISWorld research analyst Keiko Cadby, factors eroding buyer power include high and rising demand, an increasing level of market share concentration, a medium level of specialization and few substitutes. Additionally, changes in regulation and increased patent activity are expected to create more unfavorable conditions for the buyer. On the flip side, intense vendor competition and low switching costs mitigate these drawbacks by giving buyers a degree of leverage over suppliers.
Price increases are primarily due to the rising numbers of adults aged 65 and older, which increases demand for surgical stents because they are mainly used for age-related disorders. Regulatory changes are further boosting demand, while a 2.3% excise tax on medical devices will hurt supplier profit margins and discourage any buyer discounts. While demand is increasing, the pool of available suppliers is shrinking as a result of rising merger and acquisition activity. Similarly, the medium level of specialization and lack of viable substitutes “limits the buyer to certain surgical stent types and brands that may have low price negotiability,” Cadby says. “Also, patent activity leads to premium pricing, which is typically minimally negotiable because suppliers have no competition for products that are patented and demand is higher for newer technologies.” Current major suppliers include Abbott Laboratories, Boston Scientific Corporation, Medtronic, Covidien PLC and Johnson & Johnson.
Despite the unfavorable conditions, buyers can take advantage of intense supplier competition and low switching costs. Buyers can elicit competitive price bids from multiple suppliers and threaten to switch when budgets have not been met. Group purchasing organizations are especially useful as a purchasing tool to help increase buyer power by pooling member needs into larger volume purchases. If possible, buyers should combine purchase orders for surgical stents with other medical products also offered by the supplier to elicit deeper discounts. For more information, visit IBISWorld’s Surgical Stents procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of surgical stents. A stent is a tiny tube placed into an artery, urethra, esophagus or other hollow structure to hold it open. There are various types of stents, with most made of a metal or plastic mesh-like material. In most cases, stents are used to treat conditions that result from blocked or damaged blood vessels. Surgical stents are also known as drug-eluting stents and bare-metal stents. Suppliers of surgical stents include manufacturers, distributors and wholesalers.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
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