Healthcare Industry - Market Plan

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Fixed costs are costs that never change no matter how much or little a company produces. Stethy+ has fixed administrative cost of $5000.00. Variable cost is the costs that are directly related to the manufacturing of the product. The variable cost for Stethy+ include commission per unit of $40.00, direct material per unit of $18.00, Shipping cost per unit of $9.99, Supplies per unit of $13.00, and other variable cost of $10.00 per unit. The total variable cost per unit comes out to be $90.99.

The breakeven point for a single unit being sold at $125.00 per stethoscope is one hundred forty seven. This means the unit price of one hundred and twenty five dollars, times a volume of five hundred stethoscopes per period results in total sales of $62,500.00. Stethy+ would have to sell 147 stethoscopes to break even. To make a profit they would have to sell at least 150 stethoscopes to see a small profit of $101.50. This is based on the fixed and variable cost listed for the product manufacturing.

Supply Chain

SWOT Analysis

The SWOT analysis allows businesses to figure out what internal or external factors influence their products by expanding awareness of the situation (Renault). Business leaders can plan better and act more efficiently in the decision making process (Renault). It is a tool that allows you to figure out solutions to problems, or identify opportunities for your product to be successful (Renault). It can also help you to determine where areas of change are needed based on the business or products strengths and weaknesses (Renault).

The strengths of Stethy+ are shown through good customer service and a positive rapport with its customers. It strives to use quality products and materials to give its customers a lasting stethoscope. Stethy+ is patent pending ensuring customers of its originality.

Stethy+’s goal is to recognize and alleviate any weaknesses as soon as they arise to prevent the competition from recognizing the soft spot in production and using the information to formulate their big break and getting ahead.

Stethy+ uses the advancement of technology to its advantage by offering a stethoscope that displays digital readings. Stethy+ also offers the advantage over competitors of only having to use one piece of equipment to obtain the patients four primary vital signs in less than a minute.

Although changes in external environmental factors can lead to new discoveries and opportunities, it can also present a threat to the business. Stethy+ is continually working to make sure their product is top of the line in meeting the customers’ wants and needs. Stethy+ works to stay a step ahead with the advancements in technology and regulations to meet the market demand and stay ahead of its competition.

Focus Group Study

After conducting a focus group of seven participants including a medical doctor, three nurses, an ED tech, an EMS worker and a nursing student, I found that all participants found Stethy+ beneficial and useful to each of their practices. As expected, all participants agreed that it would be to their advantage of only having to use one piece of equipment when obtaining vital signs. Four out of seven participants said they use their stethoscope on every provider to patient contact. They voiced the pros and cons of the product being color digital or black and grey digitalized and their concerns for price of the product.

The pros of Stethy+ being digitalized outweighed the cons related to end of life product expectancy, as any product that uses batteries. Also the pros of the product related to accuracy and preciseness. Overall, the group had positive things to say about Stethy+ based on their stethoscope of choice and each member would be willing to give the product a trail period to assess the gold standard of the product.