Key Player Analysis, by Product
Patches
Patching is the method of using an adhesive patch over the strong eye, for months which allows the patient to use the eye with amblyopia. Patching has been a majorly used treatment for amblyopia. Major companies that are offering patches are Hoya (3M), Good-Lite, Krafty Eye Patches, Fresnel Prism and Lens Co., Hilco Vision, and McKesson Corporation.
Video Games
Video games aim to help individuals with amblyopia to learn to team up both the eyes and work together. This newly developed treatment such as virtual reality games is focusing on drawing younger patients. Companies that offer reality games are Vivid Vision, Inc. and Amblyotech, Inc.
Glasses
Glasses or lenses help to reduce stress in the underused eye, and it helps it to work more efficiently. Glasses or lenses is likely to take up higher share. Companies such as XPAND is offering programmable glasses with LCDs to treat children with amblyopia. These glasses are a better choice as compared to patches as the patches can induce stress or alienation.
Key Growth Strategy Analysis
In terms of growth strategies, mergers and acquisitions and collaborations have played a major role in the global amblyopia market from 2014 (January) to 2018 (March). In 2017, CooperVision, Inc. acquired Paragon Vision Sciences, a firm that focuses on specialty contact lenses. Further, in February 2017, Johnson & Johnson Services, Inc. acquired Abbott Medical Optics and enhanced its eye care product portfolio. Furthermore, in 2016 Hoya Corporation acquired safety prescription eyewear business of 3M. These acquisitions and collaborations have helped amblyopia market players to enhance its customer base and widen its product portfolio.
Bargaining Power of Suppliers
Bargaining power of suppliers in the amblyopia market is low to medium. The number of suppliers in the market is high which gives plenty of options to drug manufacturers for material sourcing which is required for the production of the various drugs, thus leaving suppliers with medium bargaining power. Another, factor affecting the bargaining power of suppliers is the supplier switching cost for buyers owing to the presence of a moderate number of raw material suppliers in the market. On the other hand, only a moderate number of viable raw material substitutes are available, which further boosts the bargaining power of suppliers in the market. In addition, low chances of forward integration decreases the bargaining power of suppliers.
Bargaining Power of Buyers
The bargaining power of buyers is moderate to high in the global amblyopia market. The market has a large number of buyers comprising of various amblyopia treatment drugs. The buyers of amblyopia in global market are highly inclined towards brand identity. Moreover the buyers can exert moderate to high pressure on the drugs manufacturing companies as some of the companies provides their product very costly. Hence, presence of large number of companies and huge number of products the bargaining power of suppliers tend to be moderate to high. On the other hand, the increasing demand for laser treatment may reduce the bargaining power of buyers.
Threat of New Entrants
Threat of new entrants is high in the global amblyopia market. Prevalence of eye strokes and eye diseases is increasing significantly which has increase the demand for new drugs. Available drugs did show long term effects and thus manufactures are focusing on research and development in some cases to avoid surgical procedure. Moreover, increasing geriatric population and funding is influencing many of the start-up to take keen interest in the field of research & development. Introduction of new drugs requires a long time clinical trial and a huge capital. This is the reason that there are medium possibilities of new entrants in the market.
Threat of Substitutes
Threat of substitutes in the global amblyopia market is medium to high. There are number of substitute’s treatment methods that pose a moderate to high threat in the global amblyopia market. In addition to this, introduction of generic drugs and increasing competition in the market has increase the availability of the products. Thus, the high degree of switching cost increases the threat of substitutes.
Intensity of Rivalry
The degree of competition in the global amblyopia market is medium to high. New amblyopia treatment products that use to be launched into the market needs less of approval. People are more inclined towards brand identity. However, increasing government support and availability of funding has encouraged many new start-ups. To compete with multinational players, new and small companies are reducing cost of their products.
