Essay on Bdvs - Case Study

1939 Words May 13th, 2012 8 Pages
What are the important changes in the heath care market, and what are the implications for Becton Dickinson (BD) and its BDVS division? Support your position. There are many substantial changes in the health care market. This includes the economic situation which was followed by a vast decrease and cut down in costs and expenses in hospitals. Consequently, over 100 000 employees were dismissed from their position.

Also, another important change in the health care market was the United States government ending reimbursements to hospitals for Medicare patients being admitted. As a result of this, hospital admissions decreased, as well as length of hospital admissions decreased, and by 1990 hospital beds were prospected to decrease by
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This still means that BDVS have the majority of the market share within the healthcare industry and would like to maintain their position. This is evident through the ongoing negotiations and meetings that have occurred between BDVS and APG directly. The introduction of the ‘Z –contract’ outlines how important the contract is to BDVS as they maintain constant communication with its smaller and local distributors. This ensures BDVS’s success in the market in the oncoming years whilst waiting on an outcome of the contract.
Within 10 years APG grew from 20 hospitals to 500 hospitals, during that time they have implemented purchasing agreements with 100 medical equipment suppliers. APG are evidently increasing in size at a fast pace and introducing anything and everything for hospitals that purchase under their agreements, such as warehousing and trucking. Winning the contract with APG generally meant that BDVS would be liable for 90% of the consumer market; this also came about from a different strategy that BDVS has used over the years, meaning the prices have been dropped significantly compared to their list and Z-contract pricing. After a considerable amount of research BDVS has noticed, after mentioning the number of negotiations they have had with APG, interests have risen in terms of finding out more information about further developments.
Winning the contract holds much at stake, as many of the

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