Accelerated US Growth for an Europen Medical Device Company
FidVentures' client, a European medical device company ("Company"), aimed to accelerate its growth in the US market. After conducting a thorough analysis and gaining a better understanding of customer segments in hospitals and homes, FidVentures proposed a plan to revamp sales channels and operations for better execution and faster growth. The result was a doubling of revenue within 18 months, establishing the unit as a top performer in its segment.
Situation
The European medical device company, recently acquired by a private equity firm, has made additional investments to boost growth, particularly in the US. Growth in the US has been stagnant, partly due to the segments served and reliance on the distribution model. The Company is looking for solutions to raise market awareness and revenue in the US. Specifically, they want to identify the profitable customer segments to target and determine how to reach them.
Our Approach
FidVentures' approach involves analyzing the current situation in a fact-based manner and then generating a business model based on this analysis. This includes quantifying sources of revenue, assessing the profitability of each existing sales channel, gathering feedback from both customers and non-customers, evaluating the product mix, and analyzing the effectiveness of marketing, reimbursement, and pricing strategies.
Our Recommendations
FidVentures conducted an analysis and developed models to provide prioritized initiatives for the short term (1-2 years) and the long term (3+ years). Their recommendations included revamping the sales channel, adding a new customer segment, establishing a strategic partnership, and acquiring the necessary talent to support these initiatives. Additionally, FidVentures ensured successful execution by overseeing these initiatives.
The Results
The Company approved FidVentures' recommendations and initiatives and asked FidVentures to oversee talent acquisition efforts. The Company focused on a direct instead of a distribution model, expanded into an at-home customer segment, and added a strategic partner to boost solution sales through a SaaS model. As a result, revenue doubled within 18 months, establishing the unit as a top performer in its segment.