Market Analysis For ResMed: Growth, Competitors, And Environmental Factors

Introduction to Market Analysis

Question:

Discuss about the Project Formulation and Business Planning.

Report on the market analysis includes various important aspects that are required in almost every type of industry or a company, especially when someone new is entering into the market of the country. Market analysis consists of various unique characteristics regarding a particular market in which the company wants to carry its business. All these factors included in the market analysis helps in taking several decisions for the sake of the business and all this is possible due to the collection of data done through this method. All the information collected through this method will help in determining various appropriate values related to the figure and the pricing of the product in the current situation of the market (Team, 2017).

ResMed is the Australian based manufacturing company. It manufactures a large variety of products related to the treatment of various sleep disorders. The company is the global manufacturer of CPAP, BI-PAP machines, masks, etc. being used for treating the people having any type of sleep disorder. The company also manufactures a large variety of respiratory products, etc. MR. Michael Farrell is the CEO of the company and MR. Robert Douglas is the president of the company. The company is delivering its services in more than one hundred countries across the world.

With the help of the market analysis the data is collected from the different- different markets across the world. The data collected shows that the Sleep Apnea market is expanding rapidly and it is expected that the market will worth approximately $20 Billion by the year, 2017. The market of the U.S. is the largest market as if compared to many other markets across the different countries on a world-wide level, which uses the maximum products related to sleep disorders. ResMed is the leader company, which is manufacturing and delivering the best quality of products as well as services to its customers. ResMed holds approximately 70% share of the market by providing a large variety of products at a reasonable price along with the better monitoring devices and software for treating the patients. 65% to 70% share of the sleep apnea mask is occupied by the ResMed (Parmar, 2012). The company is expanding its business in almost all the countries and this complete process is dependent on various facts, which are as mentioned below.

• Characteristics: - The Company is providing a variety of products to its customers, depending upon the requirement of an individual. The company is manufacturing a variety of devices depending upon the age, sex, location, etc. of the patient. Breathing and the respiratory machines, masks, etc. all are available in different- different sizes and functioning. Therefore, one can select according to his/her requirement (Franklin, 2012).
• Market size: - As we know, the company is rapidly expanding its business world-wide. Various facilities like professional clinics and home health providers are being provided by the company, which are very beneficial for the people facing any type of sleep disorder. People across the world are availing all types of services being provided by the experts. The data collected recently shows that, approximately 20% people have been tested at their own place and rest of the people at the labs being operated by the professional of the company. Approximately six thousand professionals are working for the company across the world.

In this section of market analysis the complete information about the competitors of the company is provided. It also includes the information about the variety of products being manufactured and delivered by other companies across the world. As we know, the market of the products being manufactured by the company is very high. The company has to face a large number of difficulties for competing with others those, who are delivering similar type of products in the market. The success of the company is dependent upon the reliability of the products, the support of the customers, reputation of the company in the market, etc. ResMed has a large number of competitors like Phillips, De Vilbiss, Nellcor Puritan Bennett, Fisher & Paykel, etc., which are providing similar type of products in the market. The faith of the customers on the ResMed is one of the biggest supports for the company due to which more and more people are interested in buying ResMed’s product. Covering the maximum share of the market across the world the ResMed is providing high quality of products for providing solutions for the problems being faced by the people related to disorders of sleep (CSIMarket Company, 2017). The competitive analysis of the company consists of various factors which are as mentioned below: -

• Market: - ResMed holds a large share of the market by providing a large variety of products in the different markets of the world.
• Strength: - The best quality of products, i.e., CPAP, BI-PAP machines, masks, respiratory machines, etc. being manufactured by the company. Services provided by the company helps in generating faith among the customers, which is one of the largest strengths of the company.
• Target market importance: - The management of the company keeps on surveying about the latest technologies for the machines and about many other requirements of the people, which is not being provided by many other companies.
• Barriers: - The Company is facing many difficulties in enhancing its products or providing remote solutions to the customers for monitoring their devices easily. These are some of the barriers for the company responsible for slowing down the expansion of the company. These are the only factors responsible for affecting the future of the company.

Overview of ResMed

Environmental analysis is a tool used for the identification of various internal and the external factors affecting the working of the company. The environmental analysis consists of various factors but the four main factors are Technological environment, Regulatory environment, Economic environment and the last one is social environment. All these factors are as mentioned below.

Technological environment – The Company is using latest technology for the manufacturing process of the machines. The various devices being manufactured in the company are equipped with the latest technology, which is helpful for curing the patients (Research, 2014).

Regulatory environment – The management is responsible for adopting all the instructions given by the government of the country for the safety of the customers. Various regulations are being followed within a scaled Agile framework. The complete manufacturing process is done according to the guidelines of the country’s government and according to the stakeholders of the company.

Economic environment – Various steps have been taken by the management to control various economic factors affecting the overall working of the company. All these steps taken are responsible for minimizing the use of natural resources and helps in creating awareness among the employees of the company. Various policies are being introduced for the improvement of the economic factors.

Social environment – Tt describes various factors affecting the physical conditions of the company. It affects both the company as well as the people using the devices being delivered by the company.in this phase, the company is focusing and developing machines according to the requirement of the people belonging to different- different categories or groups.     

Projection of the company is completely dependent upon the two main factors, i.e., the pricing and the market share of the company. In the market share we can say that while occupying the maximum share of the market the company is completely focused on the future growth of the company by enhancing their devices with the latest technology, so that each and every person can use and monitor his/her device easily. In the pricing section, the products of the company are easily available in the market at a very reasonable price, so that each and every person can avail them as per according to their need (Research, 2014).

In this section, the safety measures are considered for the safety of the people using the variety of devices manufactured by the company. The products of the ResMed are adherence to FDA quality system regulation and are manufactured according to the manufacturing standards. The regulations fixed by the FDA are responsible for the safety of the people, using all those devices which are being manufactured, labelled and marketed by the company. All these regulations help the people in making an effective and efficient use of the device they have purchased from the company (Graves & Lee, 2017).

In this step, the complete information about each and every action of the company is recorded. Various purchases and sells made by the company across the world is collected in this phase. The successful accomplishment of this phase is dependent upon various factors which are as mentioned below.

• Customers: - Customers play an important role in collecting various types of information about the market. By making good and long lasting relations with the customers helps the company in the expansion of their business. Getting feedbacks from the customers also helps in making several important changes.
• Employee’s feedback: - In this step, the information is collected by the employees of the company about the various problems being faced by them and many other important changes required for the sake of the company’s business.
• Internet: - With the help of the internet and many other social media channels, company can easily get connected with more and more customers, because this will help the company in attracting more and more people towards them, which directly influences the business of the company.

Conclusion

According to this report, we can say that, market analysis is must for the success of any type of business. With the help of the market analysis the company can easily fetch any type of detail from the market. This helps in representing the current status of the company in the market as well as it also expresses the current position of the market. All these factors are responsible for the success of the business. ResMed is the company providing the best quality of products and services to its customers, while keeping in mind about all the necessary requirements of the people.

References

CSIMarket Company. (2017). RMD Sales vs. its Competitors Q4 2016. Retrieved from https://csimarket.com/stocks/compet_glance.php?code=RMD

Franklin, D. (2012). ResMed Secure in CPAP Position Despite Increased Challenges. Retrieved from https://blueshiftideas.com/reports/101209ResMedSecureinCPAPPositionDespiteIncreasedChallenges.pdf

Graves, A., & Lee, A. (2017). ResMed Named Global Leader in Remote Patient Monitoring. Retrieved from https://www.resmed.com/us/en/consumer/newsandinformation/news-releases/2017/resmed-named-global-leader-in-remote-patient-monitoring.html

Parmar, A. (2012, July 26). Sleep Apnea Market to Double in 5 Years. Retrieved from https://www.medpagetoday.com/practicemanagement/practicemanagement/33924

Research, P. (2014, November). ResMed Inc (RMD: NYS): Analytics, Extensive Financial Metrics, and Benchmarks Against Averages and Top Companies Within its Industry. Retrieved from https://www.researchandmarkets.com/reports/3035404/resmed-inc-rmd-nys-analytics-extensive#rela7

Team, R. (2017). ResMed official website. Retrieved from https://www.resmed.com/: https://www.resmed.com/us/en/consumer.html