‘Value’ Customers in the Medical Device Industry

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(Newswire.net — June 30, 2020) –The probability of clinical adoption is high for new medical technology that meets unmet needs and improves patient outcomes at a reduced cost. The methods that clinics value and purchase medical devices have changed. In addition to doctors, hospital administrations, regulators and there are other influencers involved in decision-making. Different members of the medical device value analysis committee have different objectives.

As competition drives innovation, the competitive landscape in the medical device industry has played a critical role in improving healthcare outcomes with the help of innovative medical devices. There are emerging medical technologies in wound care, orthopedic , cardiology, oncology and other categories of medical devices by delivering innovative devices at reduced prices.

The demand for competitively priced medical devices that deliver desired clinical outcomes has created a new segment in the market. Global medical-device manufacturers are attempting to capture emerging opportunities in the segment.

Medical device companies can enhance their understanding of market needs by conducting market research and analysis work including:

  • Voice of the customer analysis
  • Market analysis
  • Value analysis
  • Key opinion leader identification
  • Risks analysis
  • Competitive analysis
  • Positioning analysis
  • Financial valuation
  • Medical device portfolio analysis

Products and Priorities

The industry has seen a rise in “value” customers. These customers prefer good enough and competitively priced medical devices. However, price is not the only priority for value customers. They have standards for medical device efficacy, quality, service and safety. They pay for a device that meets their basic expectations. However, the effect of value customers can be limited to certain categories. Highly innovative products can still command higher prices in specific areas of significant clinical challenges. These innovations fall into the premium-differentiated category. When a competitor emerges for that innovation, the presence of similar products in the market lowers the cost. When a category has more products with fewer differentiating features, medical device value analysis committees have been shown to make decisions based on price.

Medical device companies are offering the following four levels of services and products to customers:

  • Basic
  • Value
  • Premium undifferentiated
  • Premium differentiated


The basic level devices are compared on the basis of price. These devices offer minimal service to meet some basic expectations of physicians. Such devices are suitable for healthcare settings in which the physician delivers basic healthcare services. Though the market segment of basic level devices is growing faster, this segment is characterized by more competition, fewer opportunities and lower profit margins.


The services and features of these devices are tailored to meet the expectations of customers. These customers require products that deliver minimal levels of differentiation. Such products are often sold at lower prices as compared to premium products.

Premium Differentiated

These medical devices are differentiated by outcomes, efficacy and care delivery. These innovative products offer proven benefits and therefore may be able to command higher prices.

Premium Undifferentiated

Premium undifferentiated medical devices are incrementally innovative. They are significantly clinically differentiated in the competitive landscape. Medical device companies producing premium undifferentiated have strong customer relationships that drive profit. The brand image also attracts customers.

Whether a medical device company is developing a basic level device, value device, premium differentiated device or premium undifferentiated device, the company has to identify the target market and competition for the device. A medical device company requires resources and expertise to conduct research and analysis work. The company can work with a consulting firm offering medical device portfolio analysis, medical device market analysis, competitor analysis and other medical device consulting services.