8/9/2019 A_2_Becton Dickinson & Company

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Becton Dickinson &

Company Case Analysis

8/9/2019 A_2_Becton Dickinson & Company

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Becton Dickinson & CompanyProblem Statement:

How to respond to the changing buying behavior of customers across different market segments ?

BDVS rowth Drivers: Quality (R&D), Low Production Cost (Market Share), Brand (Product Rane, Res!onse "i#e & Quality)

Hospitals ! V"state# $odified %e"buy&: Basis o$ Purchase % Cost'Bene$it nalysis Quality o$ Su!!lies * +ailaility o$ Su!!lies

%ecommendation:

Re-ect P./s de#ands $or !ri+ate'lael and distriution de#ands and stick with the !ro!osed contract

"aret hos!itals throuh 0'contracts and co#!ete on the asis o$ !roduct 1uality, a+ailaility and res!onsi+e to

user de#ands

Desin dedicated contract ter#s !ertainin to the need o$ s#all and lare hos!itals 2nsure sy##etric

#arins

Structure e$$icient distriution network to reduce loistical e3!ense ( which is e1ual to raw #aterial e3!ense)

De+elo! the rowin !hysician #arket with the hel! o$ distriutor to e3!and the network to cater to these

custo#er

Pros4

Pre#iu# !ricin $or hiher 1uality

Maintain Brand 5dentity

Relationshi! with lare distriutors

Control on distriution network

'ons (

Loss o$ #arket share and re+enue 6ew sellin techni1ues to e de+elo!ed $or the

unta!!ed #arket

5ncreased R&D costs to -usti$y !roductdi$$erentiation

'hallenges (

Con+ince DM7s o$ larer hos!itals to uy throuh 0 contracts

Set !ricin $or the chaned #arket scenario Caterin to the re1uire#ents o$ the new #arket se#ent

BDVS