When you think of the leading providers of diagnostic imaging technology, who is that you think of first? Is it GE? Is it Phillips? Either way it’s a name that you know. It doesn’t matter if you are thinking of a CT scanner, an MRI, or an X-RAY machine, those are the two big boy names. To put it in perspective, Phillips and GE together make up over half of the market in terms of sales per region. In America, Europe, and the BRIC countries, those are the companies that resonate in both new and used equipment sales. The two as manufacturers make constant pushes to establish more direct channels of distribution through the building of plants and push for greater portions of R&D money from governments strengthening their healthcare.
As Bill Cosby used to say though, there’s always room for jello. The market always has room for a new competitor provided that the competitor is willing to drop substantial amounts of money in terms of capital. That capital includes investments in research and development as well as acquisitions that are a key to the growth of a company. A company that has, for two years now, been fitting the description of an emerging competitor is Samsung. Yes, the people that make the android, amazing flat screens, and great tablet PCs, now want to look inside our heads.
In 2011 Samsung announced an ambitious plan to drop over 1.1 billion dollars in the medical equipment field. Why does Samsung want to do that? As markets continue to grow and healthcare continues to evolve, Samsung is looking to cash in. There is a long road to haul given the players involved. Phillips, GE, and Siemens will not just yield to Samsung’s wish of becoming the dominant force in imaging. Samsungs plans in terms of numbers are something else. The ultimate goal is to turn Samsung into a nearly 95 billion dollar operation on the healthcare end. To quote Samsung’s Senior VP, Jo Jae Moon “We have a lot of companies on our list, and we’ve been contacting most of them,” Jo said, adding that Samsung targets small, overseas-based firms with niche technology. “We’ll continue to meet them and negotiate. We have a target to be the No. 1 across ultrasound devices, X-rays and MRIs.” referring to Samsung’s strong acquisitions push.
In 2011 Samsung invested 312 million dollars on a huge stake of Medison Co., a diagnostic devices maker. While there is no guarantee that this move will yield fruits early but given Samsung’s aggressive push, they will figure out how to make it work. There are risks in a move like this because the growth of the imaging market is being dictated by the big three, especially overseas in markets like The Philippines, which are growing more and more by the day.
More recently in its continuing push in healthcare Samsung acquired NeuroLogica. In an article published by www.techcrunch.com Samsung’s Enterprise Business Division VP was quoted as saying “The acquisition of NeuroLogica is another important step in the expansion of Samsung’s medical imaging business.” Samsung’s plan will like provide new opportunities in markets such as the refurbished equipment over the long haul. The new standards in radiology education are also likely to affect how Samsung will develop.
If you have any questions about diagnostic imaging equipment please feel free to give us a call. We look forward to answering any questions that you may have.