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Medmira Case Essay

MedMira Case

Course: Marketing Planning

What changes in the environment made it possible to consider the launch of an OTC Aids Test? Be specific. MedMira is known by developing and manufacturing quality diagnostics to prevent and control the spread of infectious diseases. All tests used a flow-through membrane technology and were fast and easy to use. Medmira was distributing rapid HIV tests in Canada, United States, South Africa, Latin America and China, and selling them to hospitals, pharmacies and aid groups. One of the focuses of MedMira was to expand to Over-the-Counter market as there happened some changes that made it possible to consider this attempt: New infections were happening and about 3.1 million people were dying from HIV. This adds a higher preoccupation to the government and specialists on the health sector and pressure to arrange a solution.

During the 80’s, there were few available treatment and when people knew they had the virus they would see it as a death sentence. Nowadays this idea is disappearing as technology is more advanced, it is a “more manageable illness” and there is an increase of information available about HIV.

Due to legal approval of the tests, MedMira was able to distribute rapid HIV tests in Canada, United States, China and European Union. This is a step closer of entering the OTC market.

Rapid testing was expected to grow between 20 to 30 per cent of the market. This expected growth was also related to a higher approval by governments as there were changes in the society acceptance and technological improvements on this area.

Comparison factor as Medmira’s first rapid HIV test for OTC, Miracare, had a big success in China and this could happen in the rest of the world. Due to this accomplishment, international demand for this product has increased.

Prepare a SWOT analysis for MedMira Aids Test.
The following SWOT analysis contains the most significant and strategically important internal and external conditions that MedMira faces. The Internal is divided into strengths and weakness and the external is divided into opportunities and threats: Internal

-HIV test market leader
-Easy use
-Ethical concerns
-Cannibalization of revealing G2

-Partnership with HA
-Open door for testing other diseases
-Growing rapid test market

-Ethical concerns
-Possible partnership of HA with competitors
-Entry costs

MedMira has some internal strengths by being a HIV test market leader, specially selling to hospitals, and suitable for at-home use. The Aids test is also easier to use and faster on getting the results relative to the competition, result of this was a higher international recognition. Relative to weakness aspects, there are some ethical concerns such as the possibility of testing without another person’s authorization that is a negative aspect. Apart from this, in case MedMira is able to enter the OTC market, there is a possibility of cannibalizing the sales of Reveal G2 to laboratories and hospitals, as the products would be considered as “substitutes” as they practically have the same objective. One of the opportunities is the partnership with Home Access and develop a revised version of HA’s Consumer Advocate System.

This partnership would eliminate the ethical concerns MedMira couldn’t address and would also help to remain competitiveness, build a barrier to entry of other firms on the phone support system and reduce courier costs. Another opportunity is if MedMira could enter the OTC market, it would be an open door for rapid tests of other infectious diseases that are worth millions. For last, the development of the rapid test market is a favorable trend to higher sales and profits, which is seen as a good opportunity. If Home Access, which possesses a patent on phone support system, joins with one of the competitors, MedMira will eventually lose competitiveness with this partnership, being one of the main threats.

For last, entry costs on the OTC market are high and it is not clear if the company could afford the expansion at this moment. To conclude this analysis, the partnership would have a positive impact in the society. Because if consumers are able to buy rapid tests, this could prompt people to be tested earlier in a faster, easier and more accessible way, which would reduce the instances of transmission.

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