Case | HBS Case Collection | October 1986 (Revised November 1989)

Becton Dickinson & Co.: VACUTAINER Systems Division

by Frank V. Cespedes

Abstract

Concerns negotiations between managers of Becton Dickinson's (BD) VACUTAINER division (which manufactures and sells blood collection products) and managers of a large hospital buying group. Recent changes in the health care industry are the background for the negotiations, which involve the buying group's attempt to negotiate both lower prices and different distribution terms with BD. The case provides background information about important industry changes and the previous history of purchasing and negotiations among BD, the buying group, and important distributors. As well as a pricing-negotiations case, it is a good vehicle for raising issues concerning what factors affect the balance of power in channel relations.

Keywords: Distribution; Negotiation Participants; Negotiation Process; Price; Sales; Manufacturing Industry; Medical Devices and Supplies Industry; Health Industry; United States;

Citation:

Cespedes, Frank V. "Becton Dickinson & Co.: VACUTAINER Systems Division." Harvard Business School Case 587-085, October 1986. (Revised November 1989.)