The Coming Amazon Effect

Med Device Sales and Marketing professionals and C-Suite familiar with the terms Value-Based, Generic and Commoditized products.  

Value-based Products are "good enough" and competitively priced. 

Generic Products: Products in a segment with no apparent brand name.

Commoditized Products defined as the process by which goods have economic value are distinguishable regarding attributes (unique brands) end becoming simple commodities in the eyes of the HCP MARKET.

 Ortho-Neuro companies can talk about the uniqueness or brand of their products; the reality is the customers of many of these products view many products as commodities. 

Just think about, total joints, plates, screws, spinal interbody, pedicle screws, stents all perform the same function. Granted there are some newer well-differentiated products introduced targeting procedures by offering innovative solutions.

There are companies entering the e-platform exchange, companies like Generix Medical; www.generixmedical.com. Introduced an e- exchange platform to address the "Amazon and e-bay" influence of how buyers, hospitals, HCP's and resellers can purchase and companies can list and sell value-based and commoditized products. Keep in mind; these are not Generic products because they all have brand names.

Companies such as GEO offer complete inventory solution digitally connecting supplier and customer.

Tyber Medical, Flower Orthopedic, offering sterile single-use devices.  Medacta, Conformis with the single-use instrument platforms. 

Medtronic is entering the total joint space, with a lean sales model. 

Going forward the innovation is implementing digital systems to lean out the sales model as prices continue to erode and ultimately compress.

Generix Medical, Amazon and a few others are moving the ball towards a paradigm shift.  All companies need be considering a 5-10 year plan to address this coming shift.