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Becton Vacutainer

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Submitted By leave4gud
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1. How has the healthcare industry changed from pre-1983 to post-1983? What are the implications for the Vacutainer Division?
2. How has Becton-Dickinson managed to be so successful (market share-wise) in this market? How important is the APG contract?
3. What are the interests of the key stakeholders in the terms of the Vacutainer-APG negotiations?
4. What should Becton-Dickinson do with respect to the demands from APG?

Value Proposition | For (customer), (company) offers its (product), which unlike the (competition) provides the owner with (benefit). | 5Cs | 4 P’s | Customer * Material mgrs of hospitals * Healthcare professionals * Medical research institutions * Industry – hospitals, medical laboratories, non hospital health care centers * General public * VACUTAINER * MICROTAINER: Infants, children and geriatric patients, smaller volumes of blood | Product * Blood collection products: * Medical * Diagnostic * Industrial safety * VACUTAINER * MICROTAINER | Climate * 1983 – process of how US govt reimbursed Medicare patients affected healthcare industry * Hospitals are more conscious of inventory carrying costs * | Price * Evacuated tubes Avg unit price 6 cents – 8 cents * Needles – 6.5 cents | Company * Becton Dickison Vacutainer Systems * Supplier of blood collection products * NEW Z contract – * BD negotiated price and QTY with large accounts, but supplied its products with one or more distributors * Three business segments: (each was a profit centre) * Laboratory * Industrial safety * Medical products (3 divisions) * Needles, syringes and diabetic products * Pharmaceutical systems * Vacutainer blood collection systems | Place * Affiliated Purchasing Group (negotiated price w/ BD) * BD product distributors (negotiated price w/ BD) * Medical Products group pooled salesforce * 474

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