Case Example

Developing a market entry strategy for the value Intra-ocular lens segment in India (Phase II)

Client Challenge

The client is a leading player in ophthalmic technologies for refractive correction (LASIK), cataracts and corneal products in the country. The top management had requested Universal Consulting India Pvt. Ltd (UC) to assess and develop a potential market entry strategy for the mid-tier value IOL segment in India.

Our Approach

The second phase of the project was to develop a business case determining the attractive options for entry into the value segment of the IOL market and assessment of impact on AMO due to market cannibalization. The following approach was utilized to determine the attractive modes of entry:
● Understand how AMO can leverage learnings from other MNCs’, in the Medtech industry, response to the growth of the value segment
● Assess how much premium within the value segment can AMO, being an MNC, charge over other domestic players
● Assess the impact on AMO due to market cannibalization exhibited by value segment on premium segment in multiple scenarios
● Evaluate plausibility of various entry options such as based on numerous factors (strategic, operational, financial, legal, ease of implementation, ease of exit):
- In-house Manufacturing (Globally or in India)
- Contract Manufacturing
- Joint venture
- Acquisition
For this purpose, the UC team conducted extensive primary research with ~31 respondents, which included ~15 ophthalmologists, ~13 competitors and ~3 industry experts across 15 cities in India.

Our Impact

After the completion of Phase II, the following insights were provided to the client: -
● MNCs’ stance on value segment across industries
● Strategies employed by MNCs entering the value segment such as dual branding, three-tiered pricing, etc., to succeed in the value segment space
● Potential growth impact for the client upon entering vs. not entering the value segment
● Analysis of distinct options for entry and recommended route to entry
● Profiles of key competitors
● High-level financials for each cannibalization scenario