Industry analysis

The diagnostic market is regularly increasing globally, and it is also complimenting

the growth and development of the phlebotomy equipment’s market. Phlebotomy equipment
is in demand in the market as the numbers of healthcare facilities are increasing daily. The
phlebotomy equipment’s market is directly dependent on the growth and expansion of the
entire healthcare and diagnostic industry. In the last few years, the healthcare industry has
displaced a steady growth through improved and public friendly policies and public, private
partnerships and by introducing more people to the insurance backed healthcare system.
Present challenges had made the diagnostic industry to improve itself. Many small and
medium level players are being pushed into the global arena because diagnostic industry had
been eroded by a huge inflow of investment. Foundation of the phlebotomy equipment’s
market is being build up and creating a new path for the phlebotomy equipment’s market
globally. The growth of the phlebotomy equipment’s market is affected by emerging
healthcare markets countries such as India, China, Malaysia and Japan
(Futuremarketinsights.com, 2018).

One of the key forces in this industry is threat to new entrants which is very weak.
This is because even though this industry requires a large amount of capital, however, it has
low retaliation from existing companies (Mirzayev, 2018). It is also difficult for new entrant
to achieve economies of scale and access suppliers as only few suppliers are available in this
industry. Hence, the bargaining power of suppliers is strong as only few numbers of suppliers
in health care industry (Jurevicius, 2013). The bargaining power of buyers is weak because
all the clinics and hospitals that performed phlebotomy need it (Recklies, 2015). The threat of
substitutes is very weak as the buyers can hardly find substitute products with reasonable
prices or better quality (Riley, 2017). Rivalry among existing competitors is medium because
even though there are only a few competitors in this industry, the exit barrier is high and the
industry growth is slow (MaRS, 2014).

Company Description

Phlebo-Pro™ is a new company that provide eyewear to see veins underneath skin for
medical usage. Phlebo-Pro™ helps phlebotomist to find vein accurately and easily, moreover
preventing patient’s painful blood taking experience. Phlebo-Pro™ is owned and operated by
Law Ke Wei, Ng Xin Yie, Minyi, Khow Yen Lin, Wong Ho Yarn and Amer F. A. Zaher.

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 Phlebo-Pro’s™ mission is to provide the best in medical products and equipment to
the Health Care Industry. Phlebo-Pro™ is used during critical and intensive care, surgery,
post-operative care during recovery, emergency services, physicians’ offices, patient care and
many other medical environments. We want our customers to feel confident that Phlebo-
Pro™ will fulfil your needs, with an excellent product quality, product knowledge, and
affordable market price.

Minyi, Yen Lin, and Ho Yarn study Bachelor of Nutrition and Wellness in UCSI.
Amer, Ke Wei, and Xin Yie study Bachelor of Biotechnology in UCSI. One of the owner, Ho
Yarn’s previous employment was with Pathlab diagnosis lab acting as a phlebotomist. From
Ho Yarn’s experience in diagnosis lab, she noticed that new phlebotomist trainer hard to find
patient’s vein, and patient suffer from pain and nausea feeling while being poked on wrong
vein. Thus, Phlebo-Pro™ is created as a helpful instrument for medical staff.

Phlebo-Pro™ will target small to medium sized clinics, pharmacies, hospitals, and
government organizations within West coast of Malaysia. Phlebo-Pro™ will seek major
contracts with hospitals, diagnosis labs, and government organisations.

By year 3, Phlebo-Pro™ will expand to other markets such as East coast of Malaysia
and Singapore. Phlebo-Pro™ is new medical instrument that highly accepted as well as high
demand in these markets. From market research, Phlebo-Pro™ is the pioneer in introducing
this product in the market.

The primary objectives of Phlebo-Pro™ over the next year are to:

- Obtain commercial financing of RM60, 000 to cover start-up costs and initial operating
expenses;
- Generate one new client contract a month by networking with sales person, conducting
workshops, and joining government dealer agencies;
- Generate a net profit of RM35, 000 in the first year of operations by developing a strong
client base and keeping overhead costs to a minimum;
- Conduct 10 Phlebo-Pro™ workshops that shows the product function and benefit.

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Phlebo-Pro™ will be located at:

Jalan Menara Gading 1, Taman Connaught,

56000 Kuala Lumpur, Selangor

Phlebo-Pro’s™ mission statement is to:

Become a creative pioneer in medical site by solving clients’ problem and providing quality
products with affordable market price.

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Appendix

Table 1: Threat to Industry Profitability

Threat to Industry Profitability

Competitive Force
Low Medium High
Threat To New Entrants 
Bargaining Power Of Suppliers 
Bargaining Power Of Buyers 
Threat Of Substitute 
Rivalry Among Existing Competitors 

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References

Futuremarketinsights.com. (2018). Phlebotomy Equipments Market - Global Industry

Analysis, Size and Forecast, 2016 to 2026. [Online] Available at:
https://www.futuremarketinsights.com/reports/phlebotomy-equipments-market
[Accessed 12 Feb. 2018].

Jurevicius, O. (2013). The 5 Powerful Forces that Impact your Profit. [online] Strategic
Management Insight. Available at:
https://www.strategicmanagementinsight.com/tools/porters-five-forces.html [Accessed
12 Feb. 2018].

MaRS. (2014). Industry Rivalry & Competition | Porter’s Five Forces. [online] Available at:
https://www.marsdd.com/mars-library/industry-rivalry-and-competition-using-five-
forces/ [Accessed 12 Feb. 2018].

Mirzayev, E. (2018). The 5 Forces That Shape Competition In an Industry - Equity

Investments: CFA Level 2 Tutorial | Investopedia. [online] Investopedia. Available at:
https://www.investopedia.com/study-guide/equity-investments-cfa-level-ii-
tutorial/study-session-equity-part-ii/industry-analysis-porters-5-forces/5-forces-shape-
competition-industry/ [Accessed 12 Feb. 2018].

Recklies, D. (2015). Porters Five Forces: content, application, critique. [online]

Themanager.org. Available at: http://www.themanager.org/2015/11/porters-five-forces/
[Accessed 12 Feb. 2018].

Riley, J. (2017). Porter's Model of Industry Rivalry (Five Forces) | tutor2u Business. [online]
tutor2u. Available at: https://www.tutor2u.net/business/reference/porters-model-of-
industry-rivalry-five-forces [Accessed 12 Feb. 2018].