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TRANSCRIPT
CURRENT POLITICAL STATE
■ Increasing Political focus on healthcare
■Affordable Care Act (ACA) could be repealed
POLITICAL IMPACTS
Negative Effects
■ Pricing pressure leading to losses
Positive Effects
■ Uninsured diabetics would look for low cost test strips and meters
WHAT WE CAN DO
■ Unfortunately, most of the political impacts are not in our control, and we can’t do much to prevent it
■ If the Affordable Care Act is repealed we should keep the GenUltimate! TBG price low compared to competitor’s in order to attract those who don’t have insurance
ECONOMICS OF THE DIABETES INDUSTRY
According to the IBISWorld
Industry report, “Glucose Meter
Manufacturing in the US”, this
industry makes 4.5bn in total
revenueCGM systems &
metersInsulin delivery
Oralantidiabetic
Percent of Revenue 32.4 30.4 37.2
0
5
10
15
20
25
30
35
40
ECONOMIC IMPACTS
Negative Effects
■ Higher interest rates
More difficult to obtain loans
Can impact profits
Positive Effects
■ Our prices much lower than competitors
■ Frequent glucose testing is necessary for diabetics
Revenue volatility is considered low
WHAT WE CAN DO
■ It looks like the current state of the economy is doing well and will not have much of a negative effect on our business
■ Since the employment rate is up and inflation is low, consumer confidence is high and we could consider a slight price increase in our product
SOCIAL FACTORS
■ Growing concern on healthcare in the US
■ Aging population
■ Obesity affecting all age groups in the US
■ CDC reports 23.1 million people diagnosed with diabetes
■ America’s Health Rankings Annual report shows 5 states with highest diabetes prevalence are: West Virginia, Mississippi, Alabama, Louisiana, and South Carolina 5 States with least insured population: Texas, Oklahoma, Alaska, Georgia, and Florida
SOCIAL IMPACTS
Negative Effects
■ Currently, none that concern us
Positive Effects
■ Aging population creates opportunity in the industry
■ Higher risk of diabetes due to obesity
WHAT WE CAN DO
■ The current social state is in our favor
■ Target advertisements
Elderly population
States with highest diabetes prevalence
States with least insured population
TECHNOLOGICALFACTORS
■ Advancements in tech are creating opportunities
■ Social media plays a key role
■ Continuous Glucose Monitoring(CGM) devices can detect glucose levels above skin
TECHNOLOGICAL IMPACTS
Negative Effects
■ New technologies are helping to reduce production costs, but it’s still a source of expenditure for company
■ Becoming harder to be competitive in the industry
Positive Effects
■ New ways to produce, distribute, and communicate
■ Opportunity: advertise through social media
WHAT WE CAN DO
■ Cost-benefit analysis when looking into new technology
■ Use technology to our advantage
Social media presence
Make education of product easily available through tech
■ To be competitive in the industry we will need easy to use pain free, strip free, and CGM devices
LEGAL FACTORS
■ FDA added/changed standards in 2014
■ Organizations & government agencies that can impact manufacturing Food and Drug
Administration(FDA) International
Organization for Standardization(ISO)
Centers for Medicare and Medicaid Services(CMS)
United States Patent and Trademark Office(USPTO)
LEGAL IMPACTS
Negative Effects
■ Legal factors shouldn’t negatively effect us unless we don’t follow regulations
Positive Effects
■ Regulations should be stable since recently changed
WHAT WE CAN DO
■ Comply with labelling requirements
■ Keep up to date with FDA, ISO, CMS, and USPTO rules and regulations
ENVIRONMENTALISSUES
■ Energy wastes
■ Consider effects of climate/weather
■ Test strips are primarily plastic and single use
■ People are more concerned with sustainability
ENVIRONMENTAL IMPACTS
Negative Effects
■ Energy wastes can effect distribution costs
Positive Effects
■ Climate/adverse weather likely not a problem for manufacturer’s location
■ 2 year shelf lifelesswaste