Competitors Analysis

Porter five forces

 The Threat of New Entrants
 The Economies of Scale & More Capital Requirement:
The economies of scale are fairly difficult to achieve in this industry. This makes it easier for
those producing large capacitates to have a cost advantage. As for the new entrance, it is
difficult to enter the market. This is a threat to a new entrance.

 Product differentiation
Product differentiation is strong within the industry, where firms in the industry sell
differentiated products rather a standardized products. There is a strong emphasis on
advertising and customer services as well.

 Distribution Network:
The access to distribution networks is easy for new entrants, which can easily set up their
distribution channels and come into the business. With only a few retail outlets selling the
product type, it is easy for any new entrant to get its product on the shelves. All of these
factors make the threat of new entrants a strong force within this industry.

 Government Policies:
The government policies within the industry require strict licensing and legal requirements to
be fulfilled before a company can start selling.\

 Bargaining Power of Suppliers

 High Number of Suppliers:
The number of suppliers in the industry is more as compared to buyers. This means that the
suppliers have less control over prices.

 Less Differentiation:
The products that these suppliers provide are fairly standardized, less differentiated, and have
low switching costs. This makes it easier for buyers to switch suppliers.

 Fewer Substitutions:
The suppliers do not contend with other products within this industry. This means that there
are no other substitutes for the product other than the ones that the suppliers provide.
 More Customers:
In this industry, all the companies are an important customer for its suppliers. This means
that the industry’s profits are closely tied to that of the suppliers. These suppliers, therefore,
have to provide reasonable pricing.

 Bargaining Power of Buyers

 More Numbers of Buyers:
The number of Buyers in the industry is a lot more than the number of firms producing
products. This means that the buyers have a few firms to choose from, and therefore, do not
have much control over prices.

 High Product Differentiation:

The product differentiation within the industry is high, which means that the buyers are not
able to find alternative firms producing a particular product.

 Low Income, High Quality:

The income of the buyers within the industry is low. This means that there is pressure to
purchase at low prices, making the buyers more price sensitive. The quality of the products is
important to the buyers, and these buyers make frequent purchases. This means that the
buyers in the industry are less price sensitive.

 The Threat of Substitute Products

 Few Substitutes:
There are very few substitutes available for the products that are produced in the industry.
The very few available substitutes are also produced by low profit-earning industries. This
means that there is no ceiling on the maximum profit that firms can earn.

 Price of Products:
The very few substitutes available are of high quality but are way more expensive.
Comparatively, firms producing within the industry companies sell at a lower price than
substitutes, with adequate quality. This means that buyers are less likely to switch to
substitute products.

 Rivalry Among Existing Firms

 Few Competitors:
The number of competitors in the industry is very few. Most of these are also large in size.
This means that firms in the industry will not make moves without being unnoticed.
 Large Market-share:
Very few competitors have a large market share. This means that these will engage in
competitive actions to gain position and become market leaders.

 Unique Products:
The products produced within the industry are highly differentiated. As a result, it is difficult
for competing firms to win the customers of each other because of each of their products in
unique.

 High Barriers:
The exit barriers within the industry are particularly high due to the high investment required
in capital and assets to operate. Exit barriers are also high due to government regulations and
restrictions. This makes firms within the industry reluctant to leave the business, and these
continue to produce even at low profits.

Target Market
The market can be segmented on the

1. Residentials
2. Hotels
3. Hospitals

Swot Analysis
A. Strengths:
 Differentiation:
There is a niche market in India for these types of products. Products like these have
more features and technology, it has Remote Sensor, Wifi Connection, and also it
changes according to customers' needs & requirements. It creates curiosity in
customers' minds to purchase the product.
 Customization:
As the product is connected with Remote Censor & wifi connection, customer can
easily customize their environment with available features and technology. Even
Customers can also customize the products as per their health and needs. So, this
product is for everyone who wants to live the environment as per their demand.
 Fewer competitors:
In the Indian market, there are very few suppliers in this industry. So, there is a high
number of chances to capture the more market with an impactful strategy.
B. Weakness:
 Cost:
As the company is new in a market, it needs more cash and capital. Also, it needs
more marketing costs to capture a whole new market. Also, all these costs increase
the product price.
 Less Awareness about the Product:
As this company is new in the Indian market, so in India there is less awareness of
this product, so we may get less order in the initial phase.
C. Opportunities:
 Make in India:
As the government already gives so many advantages for new companies to start their
production in India. The company takes advantage of this and start the production, it
will reduce the cost someway and reduce the tax also.
 Large Untapped market:
In India, there is a largely untapped market for this particular product, which can be
beneficial for the company.
D. Threats:
 Products’ price:
As it required high technology and updated software, it increases the price of the
product. And as we all know that India is a total price-sensitive market. So it may
create a threat for the company.
 Product’s demand:
Due to high technology and high price, it directly impacts on demand. It may reduce
the demand for certain products in the market.

Top competitors in this market:

1. Sleep Number Corporation
2. Hill Rom Holdings Inc.
3. Invacare Corporation

1. Sleep Number Corporation

Company Overview:

 Sleep Number is a purpose-driven company in health and wellness space.

 It is a smart bedding solution company offering advanced mattress styles and features to
ensure customizable sleeping experiences
 Sleep Number 360 smart beds deliver proven, quality sleep through effortless, adjustable
comfort.
  The company captures biometric data points using deliverable insights and improve
overall sleep health and wellness.
 Sleep Number uses Responsive Air Technology that adjusts to maintain sleep number
while a person rests.

Revenue: 1.7Billion $ (2019)

Market Capitalization: $1.3 Billion

Workforce: 4220 Employees worldwide

Swot Analysis:

A. Strengths:
 Sleep Number Corporation has a Strong Distribution network with a large number of
outlets.
 It has a low-cost structure, which provides it with an advantage over the competition.
 It has a strong financial position with positive profits reported in the past few years. It
also has a strong asset base.
 It has a skilled labor force that is highly qualified, innovative, and diversified.
 It has a strong presence on social media.

B. Weakness:
 A high proportion of property in use by is on rent, and rental charges need to be paid.
 Low amounts of spending on research and development as compared to the competition.
 It has a high employee turnover rate, with low employee motivation and working morale.
 It has liquidity problems with a low quick ratio; the level of current assets is less than
current liabilities. It also faces cash flow problems.

C. Opportunities:
 Internet users are increasing around the world. E-commerce is also growing with the
increase in internet usage.
 Social media users are increasing worldwide.
 Household income is increasing and so is consumer spending. Inflation in the economy is
expected to remain low.
 Growth in environmentally friendly products and services. The government is offering
subsidies on these.
 Interest rates are low, which provides an investment opportunity for large projects.

D. Threats:
 There is a threat of new entrants coming into the market.
  The exchange rate has been devalued.
 The fuel price has risen in recent years making inputs expensive.
 Competition within the industry is increasing.
 More substitute products are now available.

2. Hill Rom Holdings Inc.

Company Overview:

 Hill-Rom is a worldwide manufacturer and provider of medical technologies and related

services for the health care industry, including user support systems, safe mobility, and
handling solutions, and information technology solutions.
 Hill-Rom's comprehensive product and service offerings are used by health care
providers across the health care range and around the world in hospitals, extended care
facilities, and home care settings to enhance the safety and quality of patient care.

Revenue: 2.9 Billion $ (2019)

Market Capitalization: $7.6 Billion

Workforce: 10000 Employees worldwide

Swot Analysis:

A. Strengths:
 Hill Rom Holdings Inc. has a large asset base, which provides it with better solvency.
 Hill Rom Holdings Inc. has a well-functioning and interactive website that draws a large
number of internet traffic and sales.
 Hill Rom Holdings Inc. has a large product portfolio where it provides products in a large
range of categories. It has several unique product offerings that are not provided by
competitors.
B. Weakness:
 Worker morale is low due to company culture and politics that have grown in recent
years.
 Competition and qualified employees have been leaving the organization in recent years,
which could mean a shortage of good talent for the company
 The decision making is highly centralized, and decisions by teams need to be approved
by certain officials. 
C. Opportunities:
 Interest rates are low, which provides an investment opportunity for large projects.
  Tax policy: the governments’ reduction in tax rate is beneficial for Invacare Corporation
as a lower amount would be expensed out as a tax.
 Tourism: growth in tourism is beneficial for Invacare Corporation as it will provide new
potential customers that it can target to gain market share. The growth in consumer
spending in the economy is likely to increase consumption for Hill Rom Holdings Inc
products.
 Trade barriers have been reduced on the import of goods. This will reduce the costs
incurred on inputs for production.

D. Threats:
 New entrants coming into the market.
 The exchange rate keeps fluctuating and this affects a company like Hill Rom Holdings
Inc Hill Rom Holdings Inc that has sales internationally, while its suppliers are local.
 Competition within the industry is increasing.
 More substitute products are now available
 Regulations on international trade keep changing, and this requires compliance by
companies if they are to operate globally.

3. Invacare Corporation

Company Overview:

 Invacare Corporation designs manufacture, distributes, and exports medical equipment.

 The Company offers mobility and seating products, such as power wheelchairs, custom
manual wheelchairs, and seating and positioning products.
 It also provides lifestyle products, including pressure relieving overlays and mattress
replacement systems, safe resident handling products, residential care, and home beds
and bed accessories, manual wheelchairs, personal care products, and other equipment
and accessories for long-term care customers.
 Also, the Company offers respiratory therapy products

Revenue: $927.6M (2019)

Market Capitalization: $234.7 Million

Workforce: 4200 Employees worldwide

Swot Analysis:

A. Strengths:
  Distribution and Reach: Invacare Corporation has a large number of outlets in almost
every state, supported by a strong distribution network that makes sure that its products
are available easily to a large number of customers on time.
 Cost Structure: Invacare Corporation’s low-cost structure helps it produce at a low cost
and sell its products at a low price, making it affordable for its customers.
 Dealer Community: Invacare Corporation has a strong relationship with its dealers that
not only provide them with supplies but also focus on promoting the company's products
and training.

B. Weakness:
 Integration: Invacare Corporation's current structure and culture have failed various
mergers aimed at vertical integration.
 High employee turnover rates: Invacare Corporation has a higher employee turnover
rate compared to competitors.
 The company has low levels of current assets compared to current liabilities, and this can
create liquidity problems for it in operations.

C. Opportunities:
 Green government drive: this provides an opportunity for Invacare Corporation for the
sale of Invacare Corporation's products to federal and state government contractors.
 The government has also announced a subsidy on the sale of environmentally friendly
goods in this sector. Invacare Corporation can focus on these environmentally friendly
products and make use of this opportunity.
 Globalization: Increased globalization does not restrict Invacare Corporation to its own
country. It can extend its operations to other countries, entering into these markets and
making use of the opportunities that lie in these markets.

D. Threats:
 Suppliers: The bargaining power of suppliers has increased over the years with a
decrease in the number of suppliers. This means that the costs of inputs could increase for
Invacare Corporation.
 Technological developments by competitors; New technological developments by a few
competitors within the industry pose a threat to as customers attracted to this new
technology can be lost to competitors, decreasing Invacare Corporation’s overall market
share.
 Competitions: There has been an increase in competition within the industry putting
downward pressure on prices. This could lead to reduced revenue for Invacare
Corporation