PESTLE Analysis

GenUltimate!

TBG

PESTLE

Political

Economic

Social

Technological

Legal

Environmental

CURRENT POLITICAL STATE

■ Increasing Political focus on healthcare

■Affordable Care Act (ACA) could be repealed

POLITICAL IMPACTS

Negative Effects

■ Pricing pressure leading to losses

Positive Effects

■ Uninsured diabetics would look for low cost test strips and meters

WHAT WE CAN DO

■ Unfortunately, most of the political impacts are not in our control, and we can’t do much to prevent it

■ If the Affordable Care Act is repealed we should keep the GenUltimate! TBG price low compared to competitor’s in order to attract those who don’t have insurance

STATE OF THE ECONOMY

■ Inflation rate: 1.8%

■ Interest rate: 2.5%

■Employment rate up

ECONOMICS OF THE DIABETES INDUSTRY

According to the IBISWorld

Industry report, “Glucose Meter

Manufacturing in the US”, this

industry makes 4.5bn in total

revenueCGM systems &

metersInsulin delivery

Oralantidiabetic

Percent of Revenue 32.4 30.4 37.2

0

5

10

15

20

25

30

35

40

ECONOMIC IMPACTS

Negative Effects

■ Higher interest rates

More difficult to obtain loans

Can impact profits

Positive Effects

■ Our prices much lower than competitors

■ Frequent glucose testing is necessary for diabetics

Revenue volatility is considered low

WHAT WE CAN DO

■ It looks like the current state of the economy is doing well and will not have much of a negative effect on our business

■ Since the employment rate is up and inflation is low, consumer confidence is high and we could consider a slight price increase in our product

SOCIAL FACTORS

■ Growing concern on healthcare in the US

■ Aging population

■ Obesity affecting all age groups in the US

■ CDC reports 23.1 million people diagnosed with diabetes

■ America’s Health Rankings Annual report shows 5 states with highest diabetes prevalence are: West Virginia, Mississippi, Alabama, Louisiana, and South Carolina 5 States with least insured population: Texas, Oklahoma, Alaska, Georgia, and Florida

SOCIAL IMPACTS

Negative Effects

■ Currently, none that concern us

Positive Effects

■ Aging population creates opportunity in the industry

■ Higher risk of diabetes due to obesity

WHAT WE CAN DO

■ The current social state is in our favor

■ Target advertisements

Elderly population

States with highest diabetes prevalence

States with least insured population

TECHNOLOGICALFACTORS

■ Advancements in tech are creating opportunities

■ Social media plays a key role

■ Continuous Glucose Monitoring(CGM) devices can detect glucose levels above skin

TECHNOLOGICAL IMPACTS

Negative Effects

■ New technologies are helping to reduce production costs, but it’s still a source of expenditure for company

■ Becoming harder to be competitive in the industry

Positive Effects

■ New ways to produce, distribute, and communicate

■ Opportunity: advertise through social media

WHAT WE CAN DO

■ Cost-benefit analysis when looking into new technology

■ Use technology to our advantage

Social media presence

Make education of product easily available through tech

■ To be competitive in the industry we will need easy to use pain free, strip free, and CGM devices

LEGAL FACTORS

■ FDA added/changed standards in 2014

■ Organizations & government agencies that can impact manufacturing Food and Drug

Administration(FDA) International

Organization for Standardization(ISO)

Centers for Medicare and Medicaid Services(CMS)

United States Patent and Trademark Office(USPTO)

LEGAL IMPACTS

Negative Effects

■ Legal factors shouldn’t negatively effect us unless we don’t follow regulations

Positive Effects

■ Regulations should be stable since recently changed

WHAT WE CAN DO

■ Comply with labelling requirements

■ Keep up to date with FDA, ISO, CMS, and USPTO rules and regulations

ENVIRONMENTALISSUES

■ Energy wastes

■ Consider effects of climate/weather

■ Test strips are primarily plastic and single use

■ People are more concerned with sustainability

ENVIRONMENTAL IMPACTS

Negative Effects

■ Energy wastes can effect distribution costs

Positive Effects

■ Climate/adverse weather likely not a problem for manufacturer’s location

■ 2 year shelf lifelesswaste

WHAT WE CAN DO

■ The best thing we can do is incorporate sustainability into our production and even distribution

■ Since sustainability is more of a concern nowadays, we can promote proper storage and disposal by educating our customers