Innovation requires perseverance and creativity
- o_admin
- September 30, 2024
- 10:10 am
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In the fast-paced world of business, innovation often serves as the key differentiator between success and obsolescence. One striking example of this is the remarkable transformation of the sutures market in India, where a local competitor’s unwavering perseverance and imaginative strategies paved the way for significant disruption.
Not long ago, a global healthcare MNC found itself facing stiff competition from a local player in India in its mini-hospital business. The challenge was to determine whether the company should continue operating in India, where the rival had managed to secure a foothold. The focus of their business was sutures, the materials used for stitching wounds and surgical incisions.
Sutures are critical in healthcare, as they help prevent infections and ensure patient safety. The global MNC had long been recognized for its high-quality sutures, enjoying an exclusive 100% market share. However, the local competitor began producing sutures that progressively matched the global standard, gradually gaining traction in a few segments.
They were able to gain a tiny market share in the rural areas with veterinary doctors dealing with pet animals and most importantly, with medical college hospitals where they teach medical students using cadavers. A cadaver or corpse is a dead human body. Cadavers are used by medical students, physicians and other scientists to study anatomy, identify disease sites, determine causes of death, and provide tissue to repair a defect in a living human being. The medical college hospitals leave no stone unturned to lower costs and suture was no exception as there is no risk of infection with cadavers, which helped this company to break in.
Yet, when attempting to penetrate hospitals in towns and cities, the local competitor encountered a significant barrier: the deeply entrenched perception of quality and concerns about infection. Despite their best efforts to demonstrate comparability to the gold standard, the competitor’s product struggled to gain acceptance among senior doctors and surgeons who were reluctant to replace the trusted global brand.
Realizing the difficulty of changing the minds of established professionals, the local competitor altered their approach and turned to medical students. By actively involving these students in their medical education programs, the competitor ensured that future doctors and surgeons became familiar with their offerings. When these students eventually entered the workforce, unlike the established doctors, they were open to experimenting with the product. These doctors initially used it to stitch minor wounds and they didn’t have the mental barriers.
As time went on, these young doctors and surgeons began adopting the local competitor’s sutures for all kinds of procedures. Simultaneously, the emergence of new hospital chains targeting tier 2 and tier 3 cities presented an opportunity. With cost reduction being a priority to cater to the cost conscious population in these tier 2/3 cities, these hospital administrators sought ways to cut costs and make healthcare more affordable . The local competitor skillfully capitalized on these trends, leveraging their established rapport with medical students and aligning with the cost-conscious mindset of emerging hospital chains.
Within a remarkably short span of 5 — 7 years, the local competitor managed to capture a substantial 70% market share, prompting our client — the global MNC — to seek advice on the future of their sutures business in India. Recognizing the competitive disadvantage they faced in terms of pricing, our recommendation was to either focus on higher-value segments or explore innovative alternatives to traditional sutures by creating new products that eliminate the need for stitches and shut down the min-hospital business.
The success story of the local competitor demonstrates the vital role that perseverance and creativity play in disrupting established markets. By persistently pursuing their goal, adapting their strategy, and engaging with key stakeholders, they were able to overcome ingrained mindsets and drive significant change. Their ability to establish strong relationships with medical students and effectively navigate emerging market dynamics exemplifies the power of innovation when coupled with determination.
Success in innovation often lies not only in delivering superior products or services but also in challenging the status quo, embracing creativity, and persevering to forge meaningful connections that lead to transformative change and impact.
Not long ago, a global healthcare MNC found itself facing stiff competition from a local player in India in its mini-hospital business. The challenge was to determine whether the company should continue operating in India, where the rival had managed to secure a foothold. The focus of their business was sutures, the materials used for stitching wounds and surgical incisions.
Sutures are critical in healthcare, as they help prevent infections and ensure patient safety. The global MNC had long been recognized for its high-quality sutures, enjoying an exclusive 100% market share. However, the local competitor began producing sutures that progressively matched the global standard, gradually gaining traction in a few segments.
They were able to gain a tiny market share in the rural areas with veterinary doctors dealing with pet animals and most importantly, with medical college hospitals where they teach medical students using cadavers. A cadaver or corpse is a dead human body. Cadavers are used by medical students, physicians and other scientists to study anatomy, identify disease sites, determine causes of death, and provide tissue to repair a defect in a living human being. The medical college hospitals leave no stone unturned to lower costs and suture was no exception as there is no risk of infection with cadavers, which helped this company to break in.
Yet, when attempting to penetrate hospitals in towns and cities, the local competitor encountered a significant barrier: the deeply entrenched perception of quality and concerns about infection. Despite their best efforts to demonstrate comparability to the gold standard, the competitor’s product struggled to gain acceptance among senior doctors and surgeons who were reluctant to replace the trusted global brand.
Realizing the difficulty of changing the minds of established professionals, the local competitor altered their approach and turned to medical students. By actively involving these students in their medical education programs, the competitor ensured that future doctors and surgeons became familiar with their offerings. When these students eventually entered the workforce, unlike the established doctors, they were open to experimenting with the product. These doctors initially used it to stitch minor wounds and they didn’t have the mental barriers.
As time went on, these young doctors and surgeons began adopting the local competitor’s sutures for all kinds of procedures. Simultaneously, the emergence of new hospital chains targeting tier 2 and tier 3 cities presented an opportunity. With cost reduction being a priority to cater to the cost conscious population in these tier 2/3 cities, these hospital administrators sought ways to cut costs and make healthcare more affordable . The local competitor skillfully capitalized on these trends, leveraging their established rapport with medical students and aligning with the cost-conscious mindset of emerging hospital chains.
Within a remarkably short span of 5 — 7 years, the local competitor managed to capture a substantial 70% market share, prompting our client — the global MNC — to seek advice on the future of their sutures business in India. Recognizing the competitive disadvantage they faced in terms of pricing, our recommendation was to either focus on higher-value segments or explore innovative alternatives to traditional sutures by creating new products that eliminate the need for stitches and shut down the min-hospital business.
The success story of the local competitor demonstrates the vital role that perseverance and creativity play in disrupting established markets. By persistently pursuing their goal, adapting their strategy, and engaging with key stakeholders, they were able to overcome ingrained mindsets and drive significant change. Their ability to establish strong relationships with medical students and effectively navigate emerging market dynamics exemplifies the power of innovation when coupled with determination.
Success in innovation often lies not only in delivering superior products or services but also in challenging the status quo, embracing creativity, and persevering to forge meaningful connections that lead to transformative change and impact.
Author:
Vijay Raju is the Co-Founder of The Propel Labs. His innovation work has been featured in Lean Startup, Little Black Book of Innovation and First Mile. Vijay led India’s first Disney style digital animation series for Cartoon Network. He held impactful roles at WEF, Innosight and Crest Animation Studios. Vijay is a WEF Global Leadership Fellow. You can watch his TEDx talk on leadership here.