2. Diversification for HealthOne Plus
Segment Picked: Life Sciences
Description of the new Business: HealthOne Plus Life Sciences segment would manufacture and sell a broad
range of capital equipment, formulated cleaning chemistries, and service solutions to pharmaceutical companies,
and private and public research facilities around the globe.
Opportunity in the Life Sciences product/market segment
The life science market is expected over the next several years, with the molecular diagnostics space one
of the most attractive markets.
The market is currently valued at more than $42 billion and is projected to increase at compound annual
growth rate (CAGR) of 13.6% to reach approximately $81 billion in 2016.
In addition, scientific trends, government policies, and the economy in general affect this industrial
market differently as compared to pharmaceutical and drug discovery ventures.
Products Offered
Formulated cleaning chemistries that are used to prevent biological and chemical contamination and to
monitor sterilization and decontamination processes, including products used to clean components used
in manufacturing, decontaminate systems, and disinfect or sterilize hard surfaces.
High-purity water equipment, which generates water for injection and pure steam.
Sterilizers used in the manufacture of pharmaceuticals and biopharmaceuticals as well as sterilizers for
equipment and instruments used in research studies, mitigating the risk of contamination.
Washer/disinfectors that decontaminate various large and small components in pharmaceutical and
industrial manufacturing processes and in research labs, such as glassware, vessels, equipment parts,
drums, hoses, and animal cages.
Need for the Life Sciences Products
Growing global demand and surging and inefficient market prices for the Life Sciences products has created a huge
demand surplus which the industry has been incapable of meeting. Therefore HealthOne Plus should see a huge
potential in the particular segment. Along with the added growth opportunity which the company should see an
inorganic growth potential
Competition
Life Sciences segment operates in highly regulated environments where the most intense competition results from
technological innovations, product performance, convenience and ease of use, and overall cost-effectiveness.
HealthOne Plus would have to compete for pharmaceutical, research and industrial customers with a number of
large companies that have significant product portfolios and global reach, as well as a number of small companies
with very limited product offerings and operations in one or a limited number of countries.
Marketing
An efficient sales and marketing strategy would be one that leverages new-age channels such as social
collaboration and digital marketing; technologies such as Cloud computing and device usage for sales force
effectiveness; and a patient-centric approach addresses this need. Along with this, we need to align the IT services
of the company or go for 3
rd
part collaboration which provides us 1. Better customer insights, 2. Optimized and
maximized sales force field-time, 3. Enhanced reporting capabilities and 4. Increased channel visibility
3. We should tie up with
CRM product vendors
like including Oracle
Siebel, Veeva, SAP &
Salesforce.com which
will help us retaining
our customers as well
as gain new
customers.
The emphasis should
also be on MOBILITY
which will basically
include custom,
outsourced
application
development and
maintenance on
various platforms such
as Apple iOS,
Blackberry, Android,
Symbian, and
Microsoft Windows
Phone 8.
The figure shows the
generic marketing
plan that should be
followed.
Alternative Strategy: HealthOne Plus “Med-Services”
Description of Business: A comprehensive array of contract materials processing services using gamma irradiation
(“Gamma”) and ethylene oxide (“EO”) technologies. HealthOne Plus would Offer microbial reduction services
based on Customer specifications to companies that supply products to the healthcare, industrial, and consumer
product industries.
Demographics partially drive this segment’s growth. The aging population and rising life expectancy increase the
demand for medical procedures, which increases the consumption of medical devices and surgical kits.
Competition: HealtheOne Plus Med-Services would be operating in a highly regulated industry and would compete
with big and smaller contract sterilization companies and manufacturers that sterilize products in-house.
