Companies including F. Hoffmann-La Roche Ltd, Pfizer Inc., Siemens Healthineers, Sanofi, and Abbott Laboratories are the spearheads of the global meningitis diagnosis and treatment market.
F. Hoffmann-La Roche Ltd is one of the leaders in the field of diagnostics and pharmaceuticals. The company accounted for a share of 14.6% of the global meningitis diagnosis and treatment market in 2017 owing to its strong engagement in research and development activities and the expansion of its geographical presence through mergers and acquisitions (M&A).
Pfizer Inc. is a research-based giant biopharmaceutical company that operates through two segments, namely, innovative health (IH) and essential health (EH). The company operates across the world in the Americas, Europe, Asia-Pacific, and the Middle East and Africa. In 2017, the company grabbed 11.1% of the global market share as it is focusing on expanding the market globally by establishing separate entities for respected regions. For instance, in March 2017, Pfizer Inc. launched an antibiotic, Zavicefta (a fixed combination of ceftazidime and avibactam) in the UK for the treatment of serious aerobic gram-negative infections caused by resistant bacteria.
Siemens Healthineers is engaged in the manufacturing and marketing of clinical diagnostics and therapeutic systems. The company has a diverse product portfolio and operates in several business segments. It held 9.3% share of the global market in 2017. Additionally, the company has formed strategic partnerships with Thermo Fisher Scientific Inc. and NuVasive Inc. in recent years to improve technology development, marketing, and commercial activities.
Sanofi is a French multinational pharmaceutical company which functions through three segments, namely, pharmaceuticals, consumer healthcare, and vaccines. The company serves its customers around the globe by having a presence in more than 100 countries and industrial sites in 38 countries. Sanofi mostly emphasizes on new product launches and invests in sales and marketing activities. In June 2017, Sanofi signed a strategic partnership with Eurapharma (a CFAO Group subsidiary that manufactures and distributes medicines in Africa) in Morocco to strengthen its pharmaceutical business in Morocco and other African markets.
An Illinois-based company, Abbott Laboratories runs through four reportable segments including established pharmaceuticals, diagnostics, nutritionals, and cardiovascular and neuromodulation. In January 2017, the company acquired St. Jude Medical Inc. to become a leader in the medical device arena.
Few other major market value contributors operating in this market are B. Braun Melsungen AG, GlaxoSmithKline Plc, Merck KGaA, Baxter International Inc., Bio-Rad Laboratories Inc., Quest Diagnostics Incorporated, Luminex Corporation, and Cepheid.
Introduction
Several players are operating in the global meningitis diagnosis and treatment market. Few of the key players have captured a substantial share of the global market, taking advantage of their strong positions and presence across the world. Major market participants are adopting various growth strategies such as new product launches, collaborations and partnerships, operational and geographical expansions, divestitures, joint ventures, and mergers and acquisitions.
The market is highly competitive as all market players are competing to gain the market share. Intense competition, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, quality, and reliability of products. It is crucial for manufacturers to provide cost-efficient and high-quality products to survive and succeed in an intensely competitive and growing market environment.
Bargaining Power of Suppliers
Bargaining power of suppliers in the global meningitis diagnosis and treatment market is low to medium. The suppliers in the global meningitis diagnosis and treatment industry are the manufacturers of equipment used for diagnosis of meningitis and manufacturers of drugs for the treatment of the disease. Currently, a huge number of suppliers are present in the market due to the availability of huge opportunities, heavy demand, and increasing government support. Currently, major players are accounting for a significant share of the market. Switching cost of the suppliers is medium because suppliers tend to enter into long-term associations, partnership, and deals with the other device or drug manufacturing companies.
Bargaining Power of Buyers
The bargaining power of the buyers is medium in the global meningitis diagnosis and treatment market due to the presence of a high number of providers of devices and drugs for the diagnosis and treatment of meningitis. Also, the market has a large number of buyers comprising hospitals, clinics, and laboratories among others. Also, buyers prefer products manufactured by known brands. However, there is a moderate number of big brands present in the market. Because of this, the bargaining power of the buyer is medium.
Threat of New Entrants
The threat of new entrants in the global meningitis diagnosis and treatment market is low to medium. Any company trying to enter the market is required to accept the mandatory regulatory standards issued by government authorities. The market is also characterized by a high degree of brand loyalty where establishing a brand name is difficult for newcomers. Moreover, if a company desires to survive in the market, they have to introduce an innovative product and product innovation requires a large amount of investment as well as time. However, the presence of huge opportunities in the market has slightly increased the threat of new entrants to the market.
Threat of Substitutes
The threat of substitutes in the global meningitis diagnosis and treatment market is low. Currently, there are no substitutes to devices or drugs used for diagnosis and treatment of meningitis. Also, the introduction of a substitute in the market is very risky as buyers in the market prefer products manufactured by big brands. Also, the introduction of a substitute is difficult as the exact cause of meningitis is not known. Hence, the threat of substitutes is low in the meningitis diagnosis and treatment market.
Intense Rivalry
The degree of competition in the global meningitis diagnosis and treatment market is high. Many major companies are present in this market. Also, these players have a high degree of product differentiation. They are introducing innovative and high-technology products in the market. These factors increase the rivalry in the meningitis diagnosis and treatment market. Companies involved in meningitis diagnosis and treatment market are trying to acquire new players in the market and merge with major players to survive in the market. Major players are trying to achieve an edge in the market, which is creating a high rivalry in the market.
