Healthcare Market Entry in the Philippines
- Country: Philippines
- Industry: Healthcare
- Year: 2018
- Type: Market Entry
The client company is a pioneering European healthcare technology company, aiming to be the leading manufacturer of medical devices for oncology, orthopedic, sports, neurology, and musculoskeletal disorder. Being a growth company expanding into new markets, the client wanted to evaluate and validate the market opportunity in the Philippines: the current market, market potential, and competitive landscape, as well as market entry options and key considerations in the business environment.
To evaluate the market opportunity, the client’s market-match and competitiveness were tested by conducting research and key stakeholder interviews with private and public hospitals and clinics, industry associations, distributors, and government organizations. Based on this initial stage, the client gained quantitative and qualitative data on the market opportunity, while also understanding which are the most promising target market segments, and how the purchasing process works in the Philippines.
Following the evaluation phase, a go-decision was made to proceed to a distributor search. Working in partnership with a local distributor was verified as the most suitable market-entry mode for the client in the medical devices sector in the Philippines. After long-listing and short-listing potential distributors, the client was presented with a ranking of the top five most suitable candidates, which then supported final decision-making on the selection of the local distributor.
After concluding face-to-face meetings and follow-up discussions with each shortlisted distributor candidate, a distributor agreement was signed with the most suitable partner. With a time-to-market of six months, first purchase orders were coming in and a healthy sales funnel had been established. Key lessons learned:
– Evaluation of the market opportunity is crucial
– Understanding the ecosystem, stakeholders, and purchasing process is a must in determining the entry mode
– Careful selection and vetting of partner candidates are important: the most suitable is the best
– Market development does not stop when the first purchase order comes in -> sales channel management and market development together with the distributor enables success in the long run