Medical Device Reprocessing Market Insights 2026, Analysis and Forecast to 2031
By: HDIN Research
Published: 2026-01-30
Pages: 150
Market Research Report Price
- Single User License (1 Users) $ 3,500
- Team License (2~5 Users) $ 4,500
- Corporate License (>5 Users) $ 5,500
Medical Device Reprocessing Market Summary The medical device reprocessing market is a rapidly maturing sector of the healthcare supply chain, driven by a global shift toward circular economy principles and healthcare cost containment. Reprocessing involves the validated cleaning, disinfection, and sterilization of medical devices—including those originally labeled "single-use"—to restore them to a state that meets original performance and safety specifications. This industry has transitioned from a niche cost-saving measure to a strategic environmental and financial necessity. Driven by stringent FDA and EU MDR regulatory frameworks that ensure reprocessed devices are functionally equivalent to new ones, the market is benefiting from increased surgeon acceptance and the rise of "Green OR" (Operating Room) initiatives. The global medical device reprocessing market is estimated to reach a valuation of USD 2.0–6.0 billion in 2026, with compound annual growth rates (CAGR) projected to accelerate to 8.5%–16.1% through 2031, marking it as one of the fastest-growing segments in the medical technology field.Application Analysis and Market SegmentationHospitalsHospitals are the dominant end-users, accounting for over 80% of market share. They utilize reprocessing to preserve margins amid rising inflation and reimbursement headwinds. Large health systems often partner with third-party reprocessors to manage high volumes of cardiovascular catheters and surgical instruments, frequently reporting annual savings exceeding USD 1 million per facility.Clinics and Ambulatory Surgical Centers (ASCs)This is the fastest-growing application segment, with a projected CAGR of 10.0%–17.5%. ASCs, which operate on leaner margins than hospitals, increasingly rely on reprocessed endoscopy towers and laparoscopic tools to accelerate "time to revenue" for outpatient procedures.Home HealthcareAn emerging niche, home healthcare is seeing growth in the reprocessing of non-critical monitoring devices and respiratory equipment. As remote patient monitoring expands, the need for cost-effective, multi-use diagnostic peripherals is increasing.Product and Service Type AnalysisCategoryMarket Share (Est. 2026)Key TrendsReprocessed Devices~65%Dominated by cardiovascular and orthopedic devices where the price delta between new and reprocessed units is highest (30%–50% savings).Support & Services~35%Rapidly expanding as hospitals outsource validation, logistics, and "collection-to-sterilization" workflows to third-party experts.Device Criticality ClassificationCritical Devices: (e.g., Catheters, implants, surgical shears). These represent the highest value segment (~45%–55% share) due to the complexity of sterilization required for devices that enter sterile tissue or the vascular system.Semi-Critical Devices: (e.g., Endoscopes, respiratory therapy equipment). These require high-level disinfection (HLD) and are witnessing a surge in demand due to the rise in minimally invasive diagnostic procedures.Non-Critical Devices: (e.g., Blood pressure cuffs, pulse oximeter sensors). This segment focuses on high-volume, low-cost items where the primary goal is reducing the massive environmental footprint of hospital waste.Key Market Players and Competitive LandscapeThe market is characterized by the presence of medical technology giants and specialized third-party reprocessors.Market Titans: Stryker Corporation (via Stryker Sustainability Solutions) and Johnson & Johnson (via Sterilmed) lead the industry by integrating reprocessing into their broader device portfolios. Medline Industries, Inc. and Cardinal Health, Inc. leverage their vast distribution networks to offer comprehensive "closed-loop" supply chain solutions.Specialized Reprocessors: Firms like Innovative Health, LLC (cardiology focus), Vanguard AG (European leader), and SteriPro Canada Inc. provide deep expertise in complex device remanufacturing. NEScientific and SureTek Medical are notable for their focus on high-performance single-use device (SUD) validation.Service & Support Leaders: Arjo Inc. and Hygia Health Services focus on optimizing the logistical "collection" side of reprocessing, ensuring high recovery rates of used devices within hospital settings.Regional Market DistributionNorth America: The largest market (~45% share), driven by a well-established regulatory pathway for SUD reprocessing and high healthcare spending.Europe: Focused heavily on sustainability and waste reduction; however, growth is tempered by varying national interpretations of EU MDR Article 17.Asia-Pacific: The fastest-growing region (12.0%–18.5% CAGR). China and India are seeing a rapid rise in third-party reprocessing as they build out hospital infrastructure and seek to reduce reliance on expensive imported new devices.Market Opportunities and ChallengesOpportunities: The integration of AI-based tracking and RFID tags allows for real-time monitoring of a device's "use-cycle" history, building clinical confidence. Additionally, "Green Bond" financing for hospitals is increasingly tied to ESG (Environmental, Social, and Governance) targets, creating a financial incentive for aggressive reprocessing adoption.Challenges: The primary barrier remains "OEM Resistance," where original manufacturers use restrictive labeling or software locks to prevent reuse. Furthermore, the high upfront cost of setting up in-house sterile processing departments (SPD) can limit adoption in smaller, decentralized clinics.
Chapter 1 Report Overview 1
1.1 Study Scope 1
1.2 Research Methodology 2
1.2.1 Data Sources 3
1.2.2 Assumptions 4
1.3 Abbreviations and Acronyms 5
Chapter 2 Global Market Executive Summary 7
2.1 Medical Device Reprocessing Market Definition 7
2.2 Global Market Size and Growth Rate (2021-2031) 9
2.3 Market Segmentation Overview 11
Chapter 3 Industry Chain and Value Chain Analysis 13
3.1 Medical Device Reprocessing Industry Chain Structure 13
3.2 Upstream Analysis: Cleaning Agents, Sterilization Equipment, and Consumables 15
3.3 Reprocessing Workflow and Quality Control Standards 17
3.4 Downstream Analysis: Healthcare Providers and Patient Safety 19
Chapter 4 Global Medical Device Reprocessing Market by Device Type 21
4.1 Global Revenue and Market Share by Device Type (2021-2026) 21
4.2 Critical Devices (e.g., Catheters, Electrophysiology Sensors) 23
4.3 Semi-Critical Devices (e.g., Endoscopes, Laryngoscopes) 25
4.4 Non-Critical Devices (e.g., Blood Pressure Cuffs, Pulse Oximeter Sensors) 28
Chapter 5 Global Market by Product and Service 31
5.1 Global Revenue and Market Share by Category (2021-2026) 31
5.2 Reprocessed Medical Devices 33
5.3 Reprocessing Support & Services 35
Chapter 6 Global Medical Device Reprocessing Market by Application 37
6.1 Revenue and Market Share by Application (2021-2026) 37
6.2 Hospitals 39
6.3 Clinics 41
6.4 Home Healthcare 43
6.5 Others (ASC, Diagnostic Centers) 45
Chapter 7 Global Medical Device Reprocessing Market by Region 47
7.1 North America (USA, Canada) 47
7.2 Europe (Germany, UK, France, Italy, Spain, Nordics) 50
7.3 Asia-Pacific (China, Japan, South Korea, India, Taiwan (China), SE Asia) 54
7.4 Latin America (Brazil, Mexico, Argentina) 58
7.5 Middle East & Africa (GCC Countries, South Africa) 61
Chapter 8 Regulatory Landscape and Patent Analysis 64
8.1 Global Regulatory Framework (FDA, CE Mark, NMPA) 64
8.2 Sterilization Technology Innovation and Patent Filings 66
8.3 Environmental Impact and Sustainability Policies 68
Chapter 9 Competitive Landscape 70
9.1 Market Concentration and Ranking of Key Players 70
9.2 Strategies of Leading Reprocessors 72
9.3 Mergers and Acquisitions Analysis (2021-2026) 74
Chapter 10 Key Market Players Analysis 76
10.1 SteriPro Canada Inc. 76
10.1.1 Company Introduction and Business Overview 76
10.1.2 SWOT Analysis 77
10.1.3 SteriPro Medical Reprocessing Business Performance 78
10.2 Stryker Corporation 80
10.2.1 Company Introduction and Business Overview 80
10.2.2 SWOT Analysis 81
10.2.3 Stryker Medical Reprocessing Business Performance 82
10.3 Medline Industries, Inc. 85
10.3.1 Company Introduction and Business Overview 85
10.3.2 SWOT Analysis 86
10.3.3 Medline Medical Reprocessing Business Performance 87
10.4 Johnson & Johnson 90
10.4.1 Company Introduction and Business Overview 90
10.4.2 SWOT Analysis 91
10.4.3 J&J Medical Reprocessing Business Performance 92
10.5 Innovative Health, LLC 95
10.5.1 Company Introduction and Business Overview 95
10.5.2 SWOT Analysis 96
10.5.3 Innovative Health Medical Reprocessing Business Performance 97
10.6 NEScientific 100
10.6.1 Company Introduction and Business Overview 100
10.6.2 SWOT Analysis 101
10.6.3 NEScientific Medical Reprocessing Business Performance 102
10.7 ReNu Medical 104
10.7.1 Company Introduction and Business Overview 104
10.7.2 SWOT Analysis 105
10.7.3 ReNu Medical Medical Reprocessing Business Performance 106
10.8 Vanguard AG 109
10.8.1 Company Introduction and Business Overview 109
10.8.2 SWOT Analysis 110
10.8.3 Vanguard Medical Reprocessing Business Performance 111
10.9 Arjo Inc. 114
10.9.1 Company Introduction and Business Overview 114
10.9.2 SWOT Analysis 115
10.9.3 Arjo Medical Reprocessing Business Performance 116
10.10 Agito Medical 119
10.10.1 Company Introduction and Business Overview 119
10.10.2 SWOT Analysis 120
10.10.3 Agito Medical Medical Reprocessing Business Performance 121
10.11 Hygia Health Services, Inc. 124
10.11.1 Company Introduction and Business Overview 124
10.11.2 SWOT Analysis 125
10.11.3 Hygia Health Medical Reprocessing Business Performance 126
10.12 Cardinal Health, Inc. 129
10.12.1 Company Introduction and Business Overview 129
10.12.2 SWOT Analysis 130
10.12.3 Cardinal Health Medical Reprocessing Business Performance 131
10.13 Northeast Scientific, Inc. 134
10.13.1 Company Introduction and Business Overview 134
10.13.2 SWOT Analysis 135
10.13.3 Northeast Scientific Medical Reprocessing Business Performance 136
10.14 SureTek Medical 139
10.14.1 Company Introduction and Business Overview 139
10.14.2 SWOT Analysis 140
10.14.3 SureTek Medical Medical Reprocessing Business Performance 141
Chapter 11 Global Medical Device Reprocessing Market Forecast (2027-2031) 144
11.1 Global Revenue Forecast by Region 144
11.2 Global Revenue Forecast by Device Type and Application 146
Chapter 12 Market Dynamics and Strategic Recommendations 148
1.1 Study Scope 1
1.2 Research Methodology 2
1.2.1 Data Sources 3
1.2.2 Assumptions 4
1.3 Abbreviations and Acronyms 5
Chapter 2 Global Market Executive Summary 7
2.1 Medical Device Reprocessing Market Definition 7
2.2 Global Market Size and Growth Rate (2021-2031) 9
2.3 Market Segmentation Overview 11
Chapter 3 Industry Chain and Value Chain Analysis 13
3.1 Medical Device Reprocessing Industry Chain Structure 13
3.2 Upstream Analysis: Cleaning Agents, Sterilization Equipment, and Consumables 15
3.3 Reprocessing Workflow and Quality Control Standards 17
3.4 Downstream Analysis: Healthcare Providers and Patient Safety 19
Chapter 4 Global Medical Device Reprocessing Market by Device Type 21
4.1 Global Revenue and Market Share by Device Type (2021-2026) 21
4.2 Critical Devices (e.g., Catheters, Electrophysiology Sensors) 23
4.3 Semi-Critical Devices (e.g., Endoscopes, Laryngoscopes) 25
4.4 Non-Critical Devices (e.g., Blood Pressure Cuffs, Pulse Oximeter Sensors) 28
Chapter 5 Global Market by Product and Service 31
5.1 Global Revenue and Market Share by Category (2021-2026) 31
5.2 Reprocessed Medical Devices 33
5.3 Reprocessing Support & Services 35
Chapter 6 Global Medical Device Reprocessing Market by Application 37
6.1 Revenue and Market Share by Application (2021-2026) 37
6.2 Hospitals 39
6.3 Clinics 41
6.4 Home Healthcare 43
6.5 Others (ASC, Diagnostic Centers) 45
Chapter 7 Global Medical Device Reprocessing Market by Region 47
7.1 North America (USA, Canada) 47
7.2 Europe (Germany, UK, France, Italy, Spain, Nordics) 50
7.3 Asia-Pacific (China, Japan, South Korea, India, Taiwan (China), SE Asia) 54
7.4 Latin America (Brazil, Mexico, Argentina) 58
7.5 Middle East & Africa (GCC Countries, South Africa) 61
Chapter 8 Regulatory Landscape and Patent Analysis 64
8.1 Global Regulatory Framework (FDA, CE Mark, NMPA) 64
8.2 Sterilization Technology Innovation and Patent Filings 66
8.3 Environmental Impact and Sustainability Policies 68
Chapter 9 Competitive Landscape 70
9.1 Market Concentration and Ranking of Key Players 70
9.2 Strategies of Leading Reprocessors 72
9.3 Mergers and Acquisitions Analysis (2021-2026) 74
Chapter 10 Key Market Players Analysis 76
10.1 SteriPro Canada Inc. 76
10.1.1 Company Introduction and Business Overview 76
10.1.2 SWOT Analysis 77
10.1.3 SteriPro Medical Reprocessing Business Performance 78
10.2 Stryker Corporation 80
10.2.1 Company Introduction and Business Overview 80
10.2.2 SWOT Analysis 81
10.2.3 Stryker Medical Reprocessing Business Performance 82
10.3 Medline Industries, Inc. 85
10.3.1 Company Introduction and Business Overview 85
10.3.2 SWOT Analysis 86
10.3.3 Medline Medical Reprocessing Business Performance 87
10.4 Johnson & Johnson 90
10.4.1 Company Introduction and Business Overview 90
10.4.2 SWOT Analysis 91
10.4.3 J&J Medical Reprocessing Business Performance 92
10.5 Innovative Health, LLC 95
10.5.1 Company Introduction and Business Overview 95
10.5.2 SWOT Analysis 96
10.5.3 Innovative Health Medical Reprocessing Business Performance 97
10.6 NEScientific 100
10.6.1 Company Introduction and Business Overview 100
10.6.2 SWOT Analysis 101
10.6.3 NEScientific Medical Reprocessing Business Performance 102
10.7 ReNu Medical 104
10.7.1 Company Introduction and Business Overview 104
10.7.2 SWOT Analysis 105
10.7.3 ReNu Medical Medical Reprocessing Business Performance 106
10.8 Vanguard AG 109
10.8.1 Company Introduction and Business Overview 109
10.8.2 SWOT Analysis 110
10.8.3 Vanguard Medical Reprocessing Business Performance 111
10.9 Arjo Inc. 114
10.9.1 Company Introduction and Business Overview 114
10.9.2 SWOT Analysis 115
10.9.3 Arjo Medical Reprocessing Business Performance 116
10.10 Agito Medical 119
10.10.1 Company Introduction and Business Overview 119
10.10.2 SWOT Analysis 120
10.10.3 Agito Medical Medical Reprocessing Business Performance 121
10.11 Hygia Health Services, Inc. 124
10.11.1 Company Introduction and Business Overview 124
10.11.2 SWOT Analysis 125
10.11.3 Hygia Health Medical Reprocessing Business Performance 126
10.12 Cardinal Health, Inc. 129
10.12.1 Company Introduction and Business Overview 129
10.12.2 SWOT Analysis 130
10.12.3 Cardinal Health Medical Reprocessing Business Performance 131
10.13 Northeast Scientific, Inc. 134
10.13.1 Company Introduction and Business Overview 134
10.13.2 SWOT Analysis 135
10.13.3 Northeast Scientific Medical Reprocessing Business Performance 136
10.14 SureTek Medical 139
10.14.1 Company Introduction and Business Overview 139
10.14.2 SWOT Analysis 140
10.14.3 SureTek Medical Medical Reprocessing Business Performance 141
Chapter 11 Global Medical Device Reprocessing Market Forecast (2027-2031) 144
11.1 Global Revenue Forecast by Region 144
11.2 Global Revenue Forecast by Device Type and Application 146
Chapter 12 Market Dynamics and Strategic Recommendations 148
Table 1. Global Medical Device Reprocessing Revenue by Device Type (2021-2026) 21
Table 2. Global Medical Device Reprocessing Revenue by Category (2021-2026) 32
Table 3. Global Medical Device Reprocessing Revenue by Application (2021-2026) 37
Table 4. North America Medical Device Reprocessing Revenue by Country (2021-2026) 49
Table 5. Europe Medical Device Reprocessing Revenue by Country (2021-2026) 52
Table 6. Asia-Pacific Medical Device Reprocessing Revenue by Country (2021-2026) 56
Table 7. SteriPro MDR Revenue, Cost and Gross Profit Margin (2021-2026) 78
Table 8. Stryker MDR Revenue, Cost and Gross Profit Margin (2021-2026) 82
Table 9. Medline MDR Revenue, Cost and Gross Profit Margin (2021-2026) 87
Table 10. J&J MDR Revenue, Cost and Gross Profit Margin (2021-2026) 92
Table 11. Innovative Health MDR Revenue, Cost and Gross Profit Margin (2021-2026) 97
Table 12. NEScientific MDR Revenue, Cost and Gross Profit Margin (2021-2026) 102
Table 13. ReNu Medical MDR Revenue, Cost and Gross Profit Margin (2021-2026) 106
Table 14. Vanguard MDR Revenue, Cost and Gross Profit Margin (2021-2026) 111
Table 15. Arjo MDR Revenue, Cost and Gross Profit Margin (2021-2026) 116
Table 16. Agito Medical MDR Revenue, Cost and Gross Profit Margin (2021-2026) 121
Table 17. Hygia Health MDR Revenue, Cost and Gross Profit Margin (2021-2026) 126
Table 18. Cardinal Health MDR Revenue, Cost and Gross Profit Margin (2021-2026) 131
Table 19. Northeast Scientific MDR Revenue, Cost and Gross Profit Margin (2021-2026) 136
Table 20. SureTek Medical MDR Revenue, Cost and Gross Profit Margin (2021-2026) 141
Table 21. Global Medical Device Reprocessing Revenue Forecast by Region (2027-2031) 145
Figure 1. Medical Device Reprocessing Market Size Growth Rate (2021-2031) 9
Figure 2. Global Medical Device Reprocessing Market Share by Device Type in 2026 22
Figure 3. Global Medical Device Reprocessing Market Share by Category in 2026 31
Figure 4. Global Medical Device Reprocessing Market Share by Application in 2026 38
Figure 5. North America Medical Device Reprocessing Market Revenue (2021-2026) 48
Figure 6. Europe Medical Device Reprocessing Market Revenue (2021-2026) 51
Figure 7. Asia-Pacific Medical Device Reprocessing Market Revenue (2021-2026) 55
Figure 8. Global Top 5 Players Market Share in 2026 71
Figure 9. SteriPro MDR Market Share (2021-2026) 78
Figure 10. Stryker MDR Market Share (2021-2026) 82
Figure 11. Medline MDR Market Share (2021-2026) 87
Figure 12. J&J MDR Market Share (2021-2026) 92
Figure 13. Innovative Health MDR Market Share (2021-2026) 97
Figure 14. NEScientific MDR Market Share (2021-2026) 102
Figure 15. ReNu Medical MDR Market Share (2021-2026) 106
Figure 16. Vanguard MDR Market Share (2021-2026) 111
Figure 17. Arjo MDR Market Share (2021-2026) 116
Figure 18. Agito Medical MDR Market Share (2021-2026) 121
Figure 19. Hygia Health MDR Market Share (2021-2026) 126
Figure 20. Cardinal Health MDR Market Share (2021-2026) 131
Figure 21. Northeast Scientific MDR Market Share (2021-2026) 136
Figure 22. SureTek Medical MDR Market Share (2021-2026) 141
Table 2. Global Medical Device Reprocessing Revenue by Category (2021-2026) 32
Table 3. Global Medical Device Reprocessing Revenue by Application (2021-2026) 37
Table 4. North America Medical Device Reprocessing Revenue by Country (2021-2026) 49
Table 5. Europe Medical Device Reprocessing Revenue by Country (2021-2026) 52
Table 6. Asia-Pacific Medical Device Reprocessing Revenue by Country (2021-2026) 56
Table 7. SteriPro MDR Revenue, Cost and Gross Profit Margin (2021-2026) 78
Table 8. Stryker MDR Revenue, Cost and Gross Profit Margin (2021-2026) 82
Table 9. Medline MDR Revenue, Cost and Gross Profit Margin (2021-2026) 87
Table 10. J&J MDR Revenue, Cost and Gross Profit Margin (2021-2026) 92
Table 11. Innovative Health MDR Revenue, Cost and Gross Profit Margin (2021-2026) 97
Table 12. NEScientific MDR Revenue, Cost and Gross Profit Margin (2021-2026) 102
Table 13. ReNu Medical MDR Revenue, Cost and Gross Profit Margin (2021-2026) 106
Table 14. Vanguard MDR Revenue, Cost and Gross Profit Margin (2021-2026) 111
Table 15. Arjo MDR Revenue, Cost and Gross Profit Margin (2021-2026) 116
Table 16. Agito Medical MDR Revenue, Cost and Gross Profit Margin (2021-2026) 121
Table 17. Hygia Health MDR Revenue, Cost and Gross Profit Margin (2021-2026) 126
Table 18. Cardinal Health MDR Revenue, Cost and Gross Profit Margin (2021-2026) 131
Table 19. Northeast Scientific MDR Revenue, Cost and Gross Profit Margin (2021-2026) 136
Table 20. SureTek Medical MDR Revenue, Cost and Gross Profit Margin (2021-2026) 141
Table 21. Global Medical Device Reprocessing Revenue Forecast by Region (2027-2031) 145
Figure 1. Medical Device Reprocessing Market Size Growth Rate (2021-2031) 9
Figure 2. Global Medical Device Reprocessing Market Share by Device Type in 2026 22
Figure 3. Global Medical Device Reprocessing Market Share by Category in 2026 31
Figure 4. Global Medical Device Reprocessing Market Share by Application in 2026 38
Figure 5. North America Medical Device Reprocessing Market Revenue (2021-2026) 48
Figure 6. Europe Medical Device Reprocessing Market Revenue (2021-2026) 51
Figure 7. Asia-Pacific Medical Device Reprocessing Market Revenue (2021-2026) 55
Figure 8. Global Top 5 Players Market Share in 2026 71
Figure 9. SteriPro MDR Market Share (2021-2026) 78
Figure 10. Stryker MDR Market Share (2021-2026) 82
Figure 11. Medline MDR Market Share (2021-2026) 87
Figure 12. J&J MDR Market Share (2021-2026) 92
Figure 13. Innovative Health MDR Market Share (2021-2026) 97
Figure 14. NEScientific MDR Market Share (2021-2026) 102
Figure 15. ReNu Medical MDR Market Share (2021-2026) 106
Figure 16. Vanguard MDR Market Share (2021-2026) 111
Figure 17. Arjo MDR Market Share (2021-2026) 116
Figure 18. Agito Medical MDR Market Share (2021-2026) 121
Figure 19. Hygia Health MDR Market Share (2021-2026) 126
Figure 20. Cardinal Health MDR Market Share (2021-2026) 131
Figure 21. Northeast Scientific MDR Market Share (2021-2026) 136
Figure 22. SureTek Medical MDR Market Share (2021-2026) 141
Research Methodology
- Market Estimated Methodology:
Bottom-up & top-down approach, supply & demand approach are the most important method which is used by HDIN Research to estimate the market size.
1）Top-down & Bottom-up Approach
Top-down approach uses a general market size figure and determines the percentage that the objective market represents.
Bottom-up approach size the objective market by collecting the sub-segment information.
2）Supply & Demand Approach
Supply approach is based on assessments of the size of each competitor supplying the objective market.
Demand approach combine end-user data within a market to estimate the objective market size. It is sometimes referred to as bottom-up approach.
- Forecasting Methodology
- Numerous factors impacting the market trend are considered for forecast model:
- New technology and application in the future;
- New project planned/under contraction;
- Global and regional underlying economic growth;
- Threatens of substitute products;
- Industry expert opinion;
- Policy and Society implication.
- Analysis Tools
1）PEST Analysis
PEST Analysis is a simple and widely used tool that helps our client analyze the Political, Economic, Socio-Cultural, and Technological changes in their business environment.
- Benefits of a PEST analysis:
- It helps you to spot business opportunities, and it gives you advanced warning of significant threats.
- It reveals the direction of change within your business environment. This helps you shape what you’re doing, so that you work with change, rather than against it.
- It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
- It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment.
2）Porter’s Five Force Model Analysis
The Porter’s Five Force Model is a tool that can be used to analyze the opportunities and overall competitive advantage. The five forces that can assist in determining the competitive intensity and potential attractiveness within a specific area.
- Threat of New Entrants: Profitable industries that yield high returns will attract new firms.
- Threat of Substitutes: A substitute product uses a different technology to try to solve the same economic need.
- Bargaining Power of Customers: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
- Bargaining Power of Suppliers: Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.
- Competitive Rivalry: For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.
3）Value Chain Analysis
Value chain analysis is a tool to identify activities, within and around the firm and relating these activities to an assessment of competitive strength. Value chain can be analyzed by primary activities and supportive activities. Primary activities include: inbound logistics, operations, outbound logistics, marketing & sales, service. Support activities include: technology development, human resource management, management, finance, legal, planning.
4）SWOT Analysis
SWOT analysis is a tool used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. The strengths and weakness is the inner factor; the opportunities and threats are the external factor. By analyzing the inner and external factors, the analysis can provide the detail information of the position of a player and the characteristics of the industry.
- Strengths describe what the player excels at and separates it from the competition
- Weaknesses stop the player from performing at its optimum level.
- Opportunities refer to favorable external factors that the player can use to give it a competitive advantage.
- Threats refer to factors that have the potential to harm the player.
- Data Sources
| Primary Sources | Secondary Sources |
|---|---|
| Face to face/Phone Interviews with market participants, such as: Manufactures; Distributors; End-users; Experts. Online Survey |
Government/International Organization Data: Annual Report/Presentation/Fact Book Internet Source Information Industry Association Data Free/Purchased Database Market Research Report Book/Journal/News |