3m Health Care Essay

820 WordsOct 31, 20124 Pages
3M HEALTH CARE Executive Summary In this case study, viola Hoo, summer intern student has been ask to present a report regard current 3M’s distribution system in Canada by the Kevin Higgins, the voice present of 3M Health care market. At the beginning of this case it tells us that the major health service environment has been changed and were divided into two groups, traditional regular hospital and out- of – hospital. The core issues in this case are, the first is hospital likely order directly from 3M. However, the currently situation is VARs taking most order from the hospital, and as the same time VARs compline the high transportation cost lead their profit shrink. On the other hand, the daily health care product demand from Out- of – hospital has consistently increased. In my opinion, this report must suggest how to optimize separated the responsibility of duty of the job between 3M and its VARs. Size-up: Item | So What ? | Shifting shares of health care spending in Canada | As the number of hospitals consistently decrease but it do not means the demand of health care products decrease. However, as opposite, the requirement of health product goes up. | Demand from the out – of- hospital market. | During year 1993, the shift of pattern of hospital and other health care service provide has been replace by each other, from the exhibit we can see, as the number of hospital decrease and at the same time the number of others which represents out- of hospital market. | Target market: Health care market in Canada | 1) Regular hospital demand 2) The out- of hospital demand | Hospital: the unit price. | No difference between direct order from 3M or order from its partners (VARs). Therefor, how are they going to negotiated the price between 3M and VARs is become critical point to develop their partnership. | VARs | Working

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