Sunrise Medical's Wheelchair Products
Evaluating the industry based on Porter's Five Forces framework, the following stand out as the most import conditions making the industry unattractive:
Bargaining Power of Customers: About seventy-five percent of wheelchair sales in the US were covered by insurance. Medicare was the primary insurance program, and other insurers often followed Medicare's lead. Medicare limited reimbursements, which kept a lid on the price of standard and lightweight standard chairs. More expensive chairs were not fully covered, which could dampen demand for those products. …show more content…
Looking at the firms in terms of the Value Chain, it makes sense that Invacare has built a lead in ROS. Invacare is a strong sales and marketing organization which attempts to offer its customers complete service. The company operates with an integrated sales force, thereby improving efficiency and productivity. It has a strong presence in every market segment and distribution channel, so its bundling strategy was more effective despite the fact that almost all dealers carried every manufacturer's product line.
3. Should Chandler allow Guardian to introduce a lightweight standard wheelchair?
Though the two products would compete, I would recommend that Chandler give Guardian the go-ahead. With just a 2% share of the standard wheelchair market and nothing else,