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Case
| HBS Case Collection
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2000
(Revised from original 1991 version)
Becton Dickinson & Company: VACUTAINER Systems Division (Condensed)
by
V. Kasturi Rangan and Frank V. Cespedes
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Abstract
Becton Dickinson, a phenomenally successful company with an 80% market share in the blood collection needles and syringes market faces a change in the customer buying environment (cost containment pressures at hospitals). This forces a reevaluation of the company's highly successful product policy and channel strategy. One of the company's largest customers threatens to leave them for refusing their "low-price" request. It is obvious to students that giving in to this customer's threat would compromise the company's "value-added" thrust, yet the potential business at stake makes it difficult to be inflexible.
Keywords: Business Divisions;
Customer Satisfaction;
Demand and Consumers;
Market Participation;
Distribution Channels;
Success;
Corporate Strategy;
Value Creation;
Health Industry;