Wheelstair should expand into markets with increasing demand for accessibility devices due to both aging populations and increasing disability awareness.
Team 243
Wheelstair
Thalia Trinity Ching Hui En
Nasir McDaniel
Kelvin Kyei Boamah
Maria Valentina Suarez Osorio
Salman Abdulaziz K. Rashed
Gaurav Dhankhar
Section I: Industry/Competition Analysis and Market Potential
1. Global Market Scan
Key takeaways:
Wheelstair should expand into markets with increasing demand for accessibility devices due to both aging populations and increasing disability awareness. Such examples include Germany.
Wheelstair should take advantage of its geographical advantage next to countries that meet the above criteria, focusing on EU expansion prior to international expansion. This reduces transport costs during the early stages of the product life cycle.
Regulatory compliance and competitors with more financial resources and Wheelstair’s largest threats.
Wheelstair may struggle with new market penetration due to regulatory compliance, adoption resistance and lack of awareness. In response, Wheelstair should focus on building consumer awareness, trust, then desire for the product in marketing.
Acquiring safety certifications and getting covered by insurance will increase consumer awareness and trust, hence demand.
Social media and digital advertising should be used for cost efficiency.
Rather than securing seeding capital from bank loans, Wheelstair can look into venture capitalists and business angels.
1.1 PESTLE
This PESTLE analysis evaluates the global trends affecting the accessibility device industry.
1.2 SWOT
This SWOT analysis contextualizes Wheelstair’s position in the market in relation to the aforementioned global trends.
2. Competitor Analysis
Key takeaways:
There are established and successful markets for accessibility devices in Germany and the USA.
Due to the specialization of the product, it is recommended that Wheelstair prioritizes a slow but scalable model to expand its reach globally.
Wheelstair’s unique selling point lies in being a wheelchair accessory for manual wheelchairs rather than a powered wheelchair. Wheelchairs can use a penetration price strategy, framing themselves as a more affordable alternative to competitors (14,500€) upon market entry in addition to retaining the user’s social independence and physical activity. Why buy a new chair when users can purchase an add-on, increase their accessibility, and retain their activity levels?
Acquiring certifications for safety opens up potential to new markets, increases customer confidence and the potential to be funded by insurance which increases demand.
The following details key takeaways gleaned from analyzing competitors’ success, failures and operations. Full details for each competitor’s market entry strategies are in the appendix.
Mobius Mobility: iBot
The original model was discontinued in 2009 due to:
Expensive retail price at 25,000USD to 28,000USD (Adjusted for inflation: 35,777.74USD to 40,071.07USD aka 33,520.16€ to 37,375.49€)
Restrictions on user customizability because of its FDA classification as a Class III medical device.
Lack of insurance coverage
The current model has successfully been revamped and in production since 2019 due to:
FDA reclassification from a Class III to a Class II medical device, lowering regulatory controls.
Low but scalable sales volume
The current model (iBot PMD) is currently priced at 30,000 USD (28,107€).
iBot PMD has been granted the IMK (Wheelchair, Stair Climbing) and ITI (Wheelchair, Powered) codes by the FDA.
iBot PMD has received ACHC Accreditation and can now receive funding from private insurance plans.
Veterans who receive care through the Veterans Administration can receive an iBOT fully covered under VA Federal Supply Schedule # 36F79721D0202.
Purchase requires a prescription from the customer’s physician and training at a Mobius Mobility facility. ( )
Key takeaways:
Classify Wheelstair as a Class II medical device under FDA.
Having a Wheelchair covered by insurance would increase sales. Look into ACHC Accreditation and private insurance aside from Medicare and Medicaid.
Partnering with the Veterans Administration would be beneficial for Wheelstair.
Customers in the USA feel 35,777.74 USD (33,520.16€) is too expensive and deterred from purchasing.
WheelStair can price itself competitively (in comparison to iBot’s current 30,000 USD retail price) due to being a wheelchair accessory rather than the entire wheelchair.
Focusing on slow but steady expansion with a scalable sales strategy is more successful than investing immense amounts of money without market demand.
Seeking rapid international expansion, even with immense funding, is not a successful strategy.
Scewo: BRO
A test drive prior to purchase is required.
Current retail price: CHF 39,000 (40,717.35€)
Product can be financed through insurance in Germany
According to the Swiss Federal Tax Administration (FTA), all disability-related costs paid by customers are tax-deductible in Switzerland.
Key takeaways:
WheelStair can be financed through insurance in Germany if the product has a German medical aid number.
Slow expansion within the EU before developing to distant international markets is a successful strategy.
Caterwil
Foreign exports increased after 2019 certificates of safety of medical products in the EU and Saudi Arabia were attained.
Funded by Skolkovo Foundation
Key takeaways:
If WheelStair chooses to expand to Russia, the Skolkovo Foundation is open to international businesses and Wheelstair can apply to be a resident at the foundation for financial and tax benefits.
Attaining certificates of safety is vital to developing users’ confidence in the product, increasing demand.
B-Free Technology Ltd
Products: 2 models of stair climbing power wheelchair
Current retail prices:
B-FREE Ranger: 128,000HK to 156,000HK (15,320.36€ to 18,671.69€)
B-FREE Double Flash, latest model: 143,000HK (17,115.72€)
Other less established competitors:
TopChair-S
Wheelchair88:
Model PW-4x4Q aka Bighorn 4×4 Stair Climbing Wheelchair
Developed in Malaysia
3. New Market Selection
Key takeaways:
Germany and the USA are this report’s recommended markets for international expansion.
Based on sections 1 and 2, Germany is recommended as Wheelstair’s first target for international expansion. This is the most cost effective strategy with sizable market potential.
After establishing stable operations within the EU, Wheelstair could then expand to Western and Asian markets. See appendix for additional recommendations on order of expansion.
We recommend Wheelstair begin this second phase of international expansion with the USA.
Due to limited financial resources and specialization of product, Wheelstair should adopt a slow but scalable expansion model to progress its goal of global retailing.
4. New Market Analysis
4.1 Basic Characteristics of Chosen Markets
4.2 Values & Culture
Marketing efforts directed at the chosen markets should reflect the country’s respective values. The bolded values in the table below suggest the markets have cultural values that align with Wheelstair’s value proposition.
Wheelstair needs to enter a markets that place social value in equality for wheelchair users and are open to new technological advancements.
The USA’s value proclination towards independence, self-sufficiency and equality display social demand for accessibility devices like Wheelstair. However, the USA’s healthcare policies and governmental support towards their disabled population are lacking. Hence, Wheelstair should rely on the private healthcare sector in the USA to meet the social demand.
Germany’s values reflect a culture that emphasizes social equality based on socially agreed upon responsibility to provide communal support. These values, compounded by strong and continually growing support from healthcare policies, reflect Germany’s potential as a suitable market for Wheelstair. Wheelstair can expect social and governmental support from Germany’s market as long as the product’s value is clearly communicated.
The following is a brief description of some cultural dimensions based on Globe project:
4.3 Opportunities, Threats, Trends
GERMANY’S TRENDS:
Sustainable Mobility:
Germany is moving towards sustainable mobility. Considering the development of electric mobility solutions that align with this trend could be beneficial.
Assistive Technology:
The use of assistive technology, such as remote-controlled devices and intelligent systems, is on the rise. Wheelstair can take advantage of this trend by incorporating technological features into its products.
Focus on Inclusion:
Germany places a strong emphasis on the inclusion of people with disabilities in society. It can be capitalized on by promoting its solutions as facilitators of inclusion and independence.
GERMANY’S OPPORTUNITIES:
Aging Population:
Germany has an aging population (21.97% are over 65), creating a growing demand for accessibility and mobility solutions for the elderly. Source
Accessibility Legislation:
Germany has strict regulations on accessibility and the rights of people with disabilities. Wheelstair can benefit by offering solutions that comply with these standards and assist businesses and homeowners in complying with the law.
Advanced Technology:
Germany is known for its focus on technology and innovation. Leveraging advanced technologies such as smart lifting systems and electric mobility solutions can be advantageous.
Collaboration with Local Partners:
Establishing strategic alliances with local healthcare companies, builders, or social assistance institutions can be an opportunity to expand Wheelstair’s presence and sales in the German market
GERMANY’S THREATS:
Competition:
The accessibility and mobility market in Germany can be highly competitive. Wheelstair will have to compete with companies like Sunrise Medical, Invacare, Ottobock, Meyra, among others.
Regulation and Compliance:
Regulations in Germany can be rigorous. Ensuring compliance with all accessibility regulations and standards is essential to avoid legal sanctions.
Economic Changes:
Variations in the German economy can impact people’s willingness to invest in accessibility solutions.
THE USA’S TRENDS:
Telemedicine Impact:
COVID-19 sped up telemedicine adoption, affecting high-tech wheelchair prescriptions and acquisition.
Accessibility Awareness:
Growing awareness of accessibility boosts demand for high-tech wheelchairs suited for diverse environments.
Sustainability Focus:
Consider eco-efficiency in manufacturing and recycling to align with the U.S. sustainability trend.
Customization Advantage:
Offering customizable wheelchair options appeals to American consumers.
E-commerce Strategy:
Build a strong online presence and effective e-commerce strategy for the U.S. market.
Aging Population Demand:
An aging U.S. population may drive demand for advanced wheelchairs.
Continuous Innovation:
Stay updated with evolving technology and adapt to changing consumer needs.
THE USA’S OPPORTUNITIES:
Growing Demand:
The United States has an aging population, which increases the demand for wheelchairs and mobility devices. Furthermore, there is a growing awareness of the importance of accessibility and inclusion.
Advanced Technology:
The United States is known for adopting advanced technologies. Wheelstair can capitalize on this trend by offering high-tech wheelchairs aligned with American consumers’ expectations.
Insurance Funding:
Many Americans have health insurance that can cover the cost of high-tech wheelchairs.
Distribution Channels:
The USA has a variety of distribution channels, including specialized medical equipment stores and online platforms. The company needs to identify the most effective channels to reach consumers.
THE USA’S THREATS:
FDA Regulations and Approvals:
The Food and Drug Administration (FDA) approval process can be complex and time-consuming.
Intense Competition:
The high-tech wheelchair market in the United States is highly competitive, with several established manufacturers and suppliers. Competing with well-established brands can be challenging.
Healthcare Costs:
Healthcare costs in the United States are high, which can influence wheelchair purchase decisions. The company must consider how its pricing compares to available options.
4.4 Political & Economic Viability
GERMANY’S POLITICAL RELATIONSHIP TO POLAND:
Bilateral relations:
Germany and Poland have stable and positive political relations, which can be beneficial to the company. Cooperation in the European Union and NATO strengthens these relations.
International trade policy:
Both Germany and Poland are members of the European Union (EU), which promotes a single European market and regulates trade rules, facilitating trade between the two countries entering the German market.
Political stability:
Germany is well known for its political stability and for its effective government. This provides an environment that is conducive to doing business and entry for foreign companies.
GERMANY’S ECONOMIC HEALTH:
Size of the German market:
Germany has one of the largest economies in Europe and is an attractive market for foreign companies. Its size and purchasing power can be an advantage.
Strength of the medical technology sector:
Germany has a highly developed medical technology sector and is a leader in the medical device industry in Europe. However, this also means that competition can be intense.
Regulations and standards:
The German market has strict regulations on medical devices and accessibility.
Culture of quality and excellence:
Germany has a reputation for quality and excellence in product manufacturing. This can be a benchmark to compete successfully in the German market.
Innovation:
Germany is known for its focus on innovation and technology. This can provide opportunities for the introduction of high-tech products such as Wheelstair.
THE USA’S POLITICAL RELATIONSHIP TO POLAND:
Bilateral Relations:
Strong U.S.-Poland political ties, bolstered by NATO membership and shared security interests, can benefit Polish firms entering the American market, simplifying the entry process.
Trade Policies:
U.S. government trade policies favor competition and international trade, creating a conducive environment for foreign firms like Wheelstair, provided they meet regulatory standards.
Healthcare Regulations:
The U.S. medical device sector, including high-tech wheelchairs like Wheelstair’s products, faces stringent regulations. Government policies on device approval and regulation can impact market entry and competition.
THE USA’S ECONOMIC HEALTH:
Market Size:
The U.S. offers a vast market for medical devices, providing substantial growth potential for Wheelstair.
Competition:
The high-tech wheelchair sector in the U.S. is fiercely competitive, necessitating effective differentiation by Wheelstair.
Healthcare Costs:
High healthcare expenses in the U.S. may affect medical device purchases, making pricing and value proposition crucial considerations for Wheelstair.
Supply Chain Efficiency:
Establishing an efficient logistics system is vital for nationwide product distribution in the U.S.
Healthcare Spending Trends:
U.S. healthcare spending trends can impact medical device demand, prompting Wheelstair to adapt its strategy accordingly.
Reimbursement and Insurance:
Understanding U.S. health insurance systems and reimbursement processes is critical for Wheelstair’s success.
4.5 Disability Sentiments
GERMANY:
In general, Germany is relatively wheelchair-friendly compared to many other places worldwide. In terms of wheelchair accessibility, Germany has made significant progress in recent years, enacting a series of transformations, laws, and regulations to promote accessibility and inclusion for people with disabilities, including:
Accessible Infrastructure: Most German cities have wheelchair-accessible infrastructure, including sidewalks with ramps, elevators at train and subway stations, and accessible public restrooms.
Public Transportation: Public transportation is typically wheelchair-accessible, with buses and trains equipped with ramps and wheelchair spaces. Major cities also have adapted taxi services.
Accessibility Regulations: Germany has strict regulations regarding accessibility in both public and private buildings, accommodations, and workplaces. This includes the General Equal Treatment Act for People with Disabilities (Allgemeines Gleichbehandlungsgesetz, AGG).
Inclusive Culture: German society tends to be aware of inclusion and strives to be respectful and understanding of the needs of people with disabilities.
Events and Recreation: Many cultural and sports events, as well as tourist attractions, are wheelchair-accessible, often offering discounts for people with disabilities.
Supportive Laws and Organizations: Germany has supportive legislation such as the Disability Equality Act (Behindertengleichstellungsgesetz, BGG), the General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz, AGG), and Accessibility Laws. Additionally, there are organizations that support people with disabilities, such as the German Council for People with Disabilities (Deutscher Behindertenrat), Rehabilitation Service Center (Reha-Service-Zentrum), and Consultation Office for People with Disabilities (Beratungsstelle für Behinderte).
It’s important to note that accessibility can vary depending on the location and specific place in Germany. Some rural areas may have less accessible infrastructure compared to larger cities.
Moreover, there are still challenges to be addressed to ensure full access to society for all people with disabilities. For instance, some private businesses are not adequately adapted for people with disabilities. Additionally, public awareness about disability remains low in some cases.
USA:
Text goes here
4.5.1 Search Engine Sentiments
GERMANY:
Figure ?? is a collage depicting Germany’s sentiments towards disability and wheelchair users. The information was gathered by searching the following keywords via Google search engine after filtering for Germany’s regional results: “disability”, “disabled” and “wheelchair”. The first page of webpage results and image results are compiled.
Key takeaways:
Germany has a positive and progressive mindset towards the disabled community and wheelchair users.
Germany is respectful and supportive towards the wheelchair community’s accessibility needs.
Germany emphasizes a social and community approach to supporting the disabled community.
Germany understands the wheelchair community’s diverse and varying mobility abilities, celebrating an active disabled lifestyle as well as the need for self-autonomy.
Webpage search results are mostly directed towards the disabled community rather than the general public or their caretakers. This shows Germany values the disabled community’s self-autonomy, independence and supports their ability to care for themselves. The resources provided via search include accessibility guides across work, school and tourist travel, wheelchair sports and social community events for the disabled. This showcases Germany’s social community focus that was predicted via the country’s values. Additionally, it demonstrates that Germany is aware of the importance for accessibility and is currently working towards a more accessible future.
The image search shows a diverse representation of wheelchair users across various mobility abilities outside of stereotypes (i.e. complete loss of mobility, lack of active lifestyle). There are multiple instances of wheelchair sports in the search results. This showcases an active wheelchair lifestyle with a vibrant community rather than depicting wheelchairs in a negative or limiting light. Furthermore, Germany’s understanding of the specific need for an active wheelchair lifestyle aligns with Wheelstair’s mission to empower manual wheelchair users. Due to these reasons, high demand for Wheelstair is predicted in Germany’s market.
Lastly, the wheelchair accessory retailer called Alber featured on the first page of search results. Alber currently has stair climbers directed towards caretakers () rather than Wheelstair’s product offering. Wheelstair could potentially partner with Alber as a retailer in Germany.
USA:
Figure ??? is a collage depicting the USA’s sentiments towards disability and wheelchair users. The information was gathered through the same aforementioned technique, adjusted to display the USA’s regional results.
Key takeaways:
The USA has a less developed socio-cultural understanding of the disabled community but demands for disability activism are developing.
The USA has a more corporate approach to disability activism compared to the social community based approach from Germany. As a result, the American wheelchair community is less established than in Germany.
Disability issues have less visibility in the public eye and social community connection than Germany.
There is some developing representation of different wheelchair user bodies outside of stereotypes.
There are some irrelevant webpage results when searching in the USA’s region. This reflects lesser disability visibility and public priority. The general American public may have less social connection to the disabled community due to the corporate nature of American disability activism. The majority of relevant search results directed towards the disabled community are disability benefits, insurance and wheelchair retail sites. This financial and retail focus is different from Germany’s vibrant community based approach to disability support. That being said, this presents Wheelstair with many retail and corporate opportunities as the lack of social emphasis on accessibility implies an unmet need in manual wheelchair users. This circumstance highlights the importance for Wheelstair’s marketing efforts to continue raising awareness for the need for the product while educating the public on disability issues to generate social demand for the product. These efforts can coordinate with the USA’s developing awareness towards disability issues.
4.5.2 Assessment of Infrastructural Accessibility
GERMANY:
Due to geographical limitations, this research was conducted by exploring various locations in Germany on Google maps street view.
The closer the location is to the city, the more wheelchair accessible it is. In urban city areas, sidewalks are wide enough to accommodate wheelchairs and other mobility devices. There are wheelchair parking spaces in the city and urban residential areas. Train stations have ramps and further online research shows the inside of buses and trains have designated areas for wheelchairs ().
Unfortunately, it is not uncommon for streets to be paved with cobblestone which can make getting around by wheelchair more difficult.
Various travel reviews (, , ) from wheelchair users concur that Germany is generally an accessible location with extremely accessible public transport. But some buildings, especially older buildings, lack ramps or lifts at the entrance. In such cases, help was needed from staff to get up and down stairs. Accessibility support from staff was reported to be excellent where infrastructural challenges hindered wheelchair accessibility. The inside of buildings are generally less wheelchair accessible than the outside.
Overall, Germany is generally accessible with wheelchair users’ biggest challenges being stairs at entrances of old buildings.
USA:
Nasir / Salman put real life images and assessments here.
4.6 Operations
4.6.1 Product Licensing
Research product licensing and certification in the chosen markets:
Does the product( a medical device class 1 in Europe, certified by the company only) need to be certified by an external body to be sold in the proposed market? If so, how could such certification be obtained,and who is granting it? Are there any other legal requirements or cultural necessities with respect to the product packaging, labeling, branding, etc.? Are assistive devices to climb stairs or to remove architectural barriers co-financed from public sources (a state, a region,or a local community). If so,what level of financing is available and how much certification could be obtained,and who is granting it?
– Who to contact
– What certification is needed
– Step by step
– Are there other legal requirements?
GERMANY:
To acquire licensing in Germany you would go through the Federal Institute of Drug and Medical Devices. Send an informal letter along with the needed documents in article 3 of the delegated EU regulation.
CE Certification?
USA:
Foreign companies selling to the U.S. have to go through server licensing through the FDA. To pass this you would also need to get a Durable Medical Equipment (DME) license. Know Your Device’s Classification. Medical devices fall into three classes.
1:Develop a Prototype
2:Submit Your Application (If Applicable)
3:Wait for FDA Review and Approval
4:Maintain FDA Compliance.
4.6.2 Product Modifications
Note: Include Product Modifications?
Wattage of electricity
Plug heads needed
etc.
4.6.3 Transport Costs
GERMANY:
Shipping and transportation from Poland to Germany only takes 1-2 days to ship and a parcel shipping system with 5,000 points from Poland to Germany. It is also inexpensive.
Specify if land/air/sea and why?
Transport company contact details
USA:
Packages traveling from Poland to the US are calculated by weight ranging from a dollar and up along with a flat rate fee of about 17 dollars per box for regular shipping. As well as an import tariff of 23% of the full price of the item. Customs import for large-scale shipping over $800 is based on the purchase value of the full shipment. Wheelstair would need freight co
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