PORTER'S FIVE FORCES ON MEDICAL DEVICE INDUSTRY IN EUROPE

Abstract

Healthcare is an industry that has a very strong position in economies and a relatively high share of GDP. It also includes the medical device industry. The aim of this paper is to analyse the potential of the market for medical devices in Europe. The starting point is the analysis of the external environment, describing the selected macroeconomic variables affecting aggregate demand and therefore the medical device industry in selected countries. The tool for strategic analysis of the European market is Porter's Five Forces model, where initial information is obtained from the analysis of economic indicators of the given industry, analysis of world databases data, analysis of documents dealing with studies of the medical device industry. The European market can be described as highly competitive, with a large number of small and medium-sized companies, stable innovative activity, which is significantly defined by the regulations by the competent authorities. Globally, this industry is predicted to grow.