3. Hologic Inc
Founded in 1985, Hologic is a diversified medical technologies
company that develops, manufactures, and distributes diagnostic
and medical imaging systems for women’s healthcare.
Hologic provides a comprehensive suite of technologies with products
for mammography and breast biopsy, breast Magnetic Resonance
Imaging, radiation treatment for early-stage breast cancer, cervical
cancer screening, treatment for menorrhagia and uterine fibroids,
permanent contraception, osteoporosis assessment, preterm birth
risk assessment, mini C-arm for extremity imaging and molecular
diagnostic products including HPV and reagents for a variety of
DNA and RNA analysis applications.
Headquartered in Bedford, Massachusetts, Hologic employs more
than 4,200 employees worldwide.
In 2011 Hologic celebrates 26 years
of focusing on women’s health and
21 years as a public company.
“We are on a mission to help
women everywhere lead longer,
healthier lives. It is our reason for
being and the single focus of every
breakthrough we pursue, every
investment we make”.
Hologic operates its business under four reporting
segments:
Breast Health – produces a portfolio of breast
imaging and related products and accessories,
including digital and film-based mammography
systems (the Selenia full-field digital mammogra-
phy (FFDM) and Dimensions breast tomosynthesis
systems), MRI breast coils, CAD for mammography
and MRI, breast biopsy guidance systems, minimally-
invasive breast biopsy devices, breast biopsy site
markers, breast imaging comfort pads and breast
brachytherapy products.
Diagnostics – includes theThin Prep System, which
is primarily used in cytology applications, such as
cervical cancer screening, theFetal FibronectinTest,
which offers clinical benefits for the assessment of
the risk of pre-term birth, and molecular diagnos-
tic reagents used for a variety of DNA and RNA
analysis applications based on Hologic’s Invador
chemistry.
GYN Surgical – manufactures the NovaSure endo-
metrial ablation system, which enables physicians
to treat women suffering from excessive menstrual
bleeding in a minimally-invasive manner, and the
Adiana permanent contraception system, which is
intended as an alternative to tubal ligation.
Skeletal Health – includes QDR X-ray bone densi-
tometers, the Sahara ultrasound-based osteoporosis
assessment product and Fluoroscan mini C-arm
imaging products.
Better Images
Better Care
4. The latest
news
On April 30, 2012, Hologic announced that
it would acquire Gen-Probe, the diagnostic
tests maker, in a $3.75bn cash deal.
It will give the company a stronger presence
in blood screening and women’s health.
Also, this is the third acquisition to the
company since 2011. Hologic is securing its
market position quite fast and steadfastly.
5. Hologic started the first time with the introduction
of its products to health institutions and build its
brand.
Relying on a superior image quality, the strategy of
Hologic changed from a sales dealer to an
aggressive internal sales force that effectively took
market share from competitors.
By constantly engaging customers as equal partners,
and implementing their requests for organizational
decision making, Hologic created a better product
and built customer’s loyalty.
Understanding the need of the customers, the
company maintains control over the sales force
to assure a proper flow of information from the
company to the market and from the market to
the company.
Full of resources, Hologic aims to provide saturation
coverage of the market by using all available outlets.
Products and customers focused, Hologic tries to
bring a mix of users which represent many dif-
ferent markets, such as big hospitals, small facilities,
and private practice offices.
As a medical equipment maker, Hologic leads the
market by its three main products: mammography,
bone densitometry system and permanent con-
traception device.All of them are woman-related
healthcare instruments.
Hologic’s most preeminent and latest product is
DigitalTomosynthesis.The device can create a
3-dimensional picture of the breast using X-rays.
It is significant because it is able to clearly identify
lesions they may not have been able to see before.
Market strategy for HologicDigital Mammography
6. Hologic uses specific websites to conduct customers
& patients to “the world with Hologic” directly.
The websites’ purpose is not pushing the products
to patients but trying to give them tips for their
ailments, and giving them quick diagnosis as well.
It also makes surveys and provides rewards for
participators to collect primary information.
Hospitals and other health-related institutions need
to introduce a certain amount of diagnostic instru-
ments, medical staff prefer to use easy-to-operate
machines. Hologic tries to precisely fill their needs; it
minimalizes the intricacy of the equipment and pro-
vides instructors to explain how to use the instru-
ments for medical operators.
The company is using iSTORE, an online retail shop
held by the company, to address to customers.
If customers already know the products, they can
skip those onerous parts of purchasing and simply
order via the website.
Hologic is the market leader in a lot of areas.Those
are mammography and breast biopsy, breast mag-
netic resonance imaging, radiation treatment for
early-stage breast cancer, cervical cancer screening,
treatment for menorrhagia and uterine fibroids, per-
manent contraception, osteoporosis assessment, pre-
term birth risk assessment, mini C-arm for extremity
imaging, and molecular diagnostic products including
human papillomavirus (HPV) testing and reagents for
a variety of DNA and RNA analysis applications.
Ostheoporosis assessment table
7. S.W.O.T
• Diversified segments and synergies between
them
Since Hologic provides its products and services
in multi-fields, it can apply the methods of cross-selling
and up-selling. Cross-selling means if a client already
owns Hologic’s mammography, for example, Hologic
can suggest other equipment to the client such as the
breast biopsy machine. If a client also has different seg-
ments such as a general hospital, then Hologic can push
its bone densitometry systems and breast scan systems
simultaneously.
The merits to clients are: if they are using Hologic’s
tools consistently, clients can obtain more accurate
diagnostic results; and if they buy several instruments at
once, they can apply to bulk-sale discount.
Up-selling means Hologic has an advantage to
introduce its newer machines to clients. If clients already
have analog mammography machines, why not suggest
a newer one to them?The advantage is: since medical
teams are getting used to Hologic’s devices, it is easier
to adapt yet another one.
• Strong sales and distribution network
Hologic has its sales network among 123 countries
worldwide. Especially in developed countries, such as
Japan, the company has strong bonds with local distrib-
uters and selling almost all products through different
distributers.
• Major position in the market
Hologic has the predominant global market share
of 52% in 2010, followed by GE Healthcare (27%) and
Siemens Healthcare (10%). In the US, Hologic has even
higher presence with a 70% market share
Strength
Weaknesses
• High operating expenses
Hologic faced several issues including the effect
of the economic downturn and expenses for market
expanding, delay of production schedules and research
& development costs, Hologic experienced three-year
continuous deficit during 2008-2010.Also, current con-
secutive acquisitions are hitting the company’s budget
severely.
• Patent infringement
Technological equipment always has patent infringe-
ments. Hologic had several disputes in the last 3 years.
With these plaintiffs, Conceptus, SenoRX, and Ethicon
Endo-Surgery, Hologic paid vast amounts of remunera-
tion for settlements. In the future, Hologic still has the
risk of litigations.
• Too new to use its instruments
Although Hologic’s instruments are using advanced
technologies and have better accuracy, the machines are
intricate and unwieldy to use for some medical institu-
tions. Because of its advancement, the machines have
lack of integration with other diagnostic devices.
The problem can cause workflow complications.
Opportunities
• Global healthcare reforms
Ongoing healthcare reforms among the US and
the EU may help the growth of the healthcare equip-
ment market.The governments are starting to cut their
spending to subsidize medicines and special treatments,
preventive medicine including mammography will be-
come more and more important in the future.
If people can find their lesion in the early stage,then
none of them need to pay expensive medical fees.
In the US, the Food and Drug Administration(FDA)
approved that mammography manufacturers can pro-
mote their equipment more widely. It also can be an
opportunity to expand the market.
• Global awareness of breast cancer
Since 1991, the Susan G. Komen Foundation
started to use pink ribbons as a symbol of campaign
for enlightening breast cancer awareness to people.
Since then, the ribbon has become the official symbol
of National Breast Cancer Awareness Month every
october.This campaign is still ongoing and expanding
every year.
• Growth potentiality in emerging economies
The mammography market looks promising and it
will reach over $1billion annual revenue in 2017.
The main reason is market growth in emerging coun-
tries, especially in Asia, can record more than 9.4%
annual growth rate.The needs for replacing old ma-
chines with modern equipment are also soaring in the
developing countries.
Threats
• Highly competitive market
Since FDA’s approval allows manufacturers to pro-
mote and provide their equipment with less regulation,
the market will be more competitive.The loose regula-
tions also enable new companies to enter the market.
• Fast technological evolutions
Because technological evolutions are too fast, even
the latest mammographic products could tend to be
obsolete within a couple years.This means manufac-
turers only have short period for selling their newest
products in cover price. Potential discount will hurt
manufacturers’ profit gravely.
• Demands for secondhand, not new one
The increasing demand for pre-owned medical
equipment will negatively affect sales of new mam-
mography equipment.
Since technological evolutions are so fast, there is no
vital meaning for owning the latest models.Therefore,
clients prefer cheaper models which are available at a
discount of 30% to 50%. However, if no one purchases
the new one, the manufacturers cannot recoup their
R&D costs.
Analysis
8. Help every woman in the world, and lead her to longer and healthier life
by Hologic’s health service.
Hologic is known for its Breast Tomosynthesis and being the first
company that received FDA approval for 3D Breast Tomosynthesis.
People might think “Hologic provides services for women only”. However,
their services are not just for women. Hologic also provides bone health
service, which is for both elders and young people. In addition, they pro-
vide not only breast health, bone health, prenatal health, and gynecologic
health service to the patients but also the courses and case studies for
training purpose.
Services
Breast Health
Breast health covers digital mammography, screen-film
mammography, breast ultrasound, and MRI solutions.
With the most advanced digital mammography system
in the industry, Hologic guarantees the most safety and
highest quality treatment toward their clients. Detecting
breast cancer is what BreastTomosynthesis does and is
also what Hologic professional at.
Skeletal Health
Osteoporosis is one kind of bone disease that can
affect both woman and man. It makes one’s bone
become weaker.According to Hologic’s promoting
video, people don’t know Osteoporotic hip fractures
can lead to dangerous medical complications. Most
people don’t find out until too late.
Fortunately, Osteoporosis can be treatment now.
Hologic is promoting testing bone health. It is quick
and painless.They also teach people how to prevent
Osteoporosis by healthy diet, active living, and reduced
smoking and alcohol.
Pre-natal Health
The health of pregnant woman and her baby are
important while pregnancy. Hologic provides a fetal
fibronectin test, a test in assessing preterm birth risk,
and lots of valuable informations to support and help
pregnant women. Hologic also provides another test
called InPlex® CF that can identify if a baby has genetic
mutation or not.
Gyconologic Health
Many women have questions about cervical cancer
screening or treating heavy menstrual bleeding.
Hologic provides all kinds of technologies, products, and
therapies on those areas in order to improve women’s
lives and healthy. Hologic also provides treatments that
can improve the people who still have chances to be
recovered from diseases.
Hologic’s Mission
9. Hologic provides online and live training, BioMed training, and case study
for people who want to improve their health or enhance their knowledge.
Live training-Hologic specialties give out actual speeches for teaching the
knowledge of different topics.
Online training is for people who don’t have time to take actual course,
which included lectures, web-baesd training modules, and procedural
training videos.
BioMed training- Hologic offers customers lectures, labs and experiences
with products and teaches customers how to use their products efficiently.
10. Competitive
The healthcare industry is characterized by continual
change and improvements in technology.
Many competitors offer a broader product portfolio,
which this market attract hospitals, radiology clients,
group purchasing organizations, laboratories, physicians
and other potential customers.
Many of Hologic’s competitors are larger, have greater
financial and technical resources, do extensive research,
sales, marketing and manufacturing capabilities.
Hologic beleives on the success of itself depending on
the ability to differentiate its products and to demon-
strate that they deliver the attributes that are needed
by customers.This includes, efficacy, ease of use,
reliability, quality and cost.
it also depends on investing in product enhancements
and technologies that will help us distinguish Hologic
from its competitors.
Hologic Products and related technologies compete
with products offered by a number of competitors,
including GE, Siemens, Philips, Planmed,Agfa, Carestream
Health, Fuji, IMS Giotto, andToshiba, Invivo, Devicor
Medical Products, Becton, Dickinson & co, Roche
Diagnostics Corp, Celera, Biosystems, Innogentics, Inc.,
Luminex Corp...etc
Regulatory
The manufacture, sale, lease and service of medical
diagnostic and surgical devices intended for commercial
use are subject to extensive governmental regulation by
the FDA in the United States and by a variety of regula-
tory agencies in other countries. In addition to that
laws relating to safe working conditions, manufacturing
practices, environmental protection, fire hazard control
and disposal of hazardous or potentially hazardous
substances, among others.
Economic
• Macroeconomic uncertainty may affect Hologic
business.
• guidelines, recommendations and studies published
by various organizations can reduce the use of
Hologic’s products.
• Changes in laws affecting the healthcare industry
could affect the revenues and profitability.
• unanticipated delays in product’s development.
• damage at manufacturing facilities.
• Fluctuations in the exchange rates of European
currencies and the other foreign currencies.
Environmental forces
Thechnological
Hologic’s products have been characterized by rapid
technological growth and changes.
The success depends on the ability to enhance and
develop the existing products, new products that meet
increasing customer requirements and gain market
acceptance. If Hologic fails to enhance the products,
and the related technologies, this may be rendered
obsolete or uncompetitive by new industry standards
or changing technology.
Distribution
Hologic sells it products and related technologies
through a network of independent distributors and
sales representatives, as well as a direct sales and ser-
vice force in the U.S., Canada, Europe, the UK,Australia
and in China, the Middle East,Africa, South Asia, Latin
America, and Pacific Rim countries. Japan, South Korea,
Thailand andTaiwan. Hologic also utilizes a network
of third-party distributors in various foreign countries
throughout the world.
“We believe that in order to effectively market our current products
and any other new products and applications on a worldwide basis, we
will need to continue to increase our international marketing, sales, and
service capabilities.”
Revenue Growth of 2012
2nd quarter fiscal Mammography Gyn SurgicalDiagnostic
32.5 M
13.6 M
12.8 M
5.7 M
Social
Hologic might be affected by seasonality, changes in
behavior since customer purchases of the GYN Surgical
products have been historically less in the second fiscal
quarter of the year as compared to other quarters. In
addition, the summer months, which is during the fiscal
fourth quarter, typically have had lower order rates
internationally for most of the products.
“Hologic is currently the only
provider of a molecular test for
predicting the risk of preterm
birth in the United States, and
internationally.”
11. Executive Officers
Robert A. Cascella President & Chief Executive Officer
Jay A. Stein Co-founder, Chairman Emeritus, SeniorVice
President & Chief Technical Officer
Glenn P. Muir ExecutiveVice President, Finance and Ad-
ministration & Chief Financial Officer
David J. Brady SeniorVice President, Human Resources
Mark J. Casey SeniorVice President, General Counsel, &
Secretary
David P. Harding SeniorVice President & General Manager,
International
Peter K. Soltani SeniorVice President &General Manager,
BreastHealth
Steven S.Williamson SeniorVice President & General Manager,
GYN Surgical Products
12. Marketing Strategy, Distribution &
Environmental Forces http://investors.hologic.com/annual-filings
Breast Health http://www.hologic.com/en/womens-health/ibs/video
Skeletal Health http://www.hologic.com/en/womens-health/bone-health
Prenatal Health http://www.hologic.com/en/womens-health/prenatal-health
Gynecological Health http://www.hologic.com/en/womens-health/gyn-health
Education http://www.hologic.com/en/product-support-link/biomed
training
Digital Mammography http://www.prweb.com/releases/mammography_equipment/
digital_mammography/prweb8953891.htm
Positive report for global mammo market http://www.auntminnieeurope.com/index.aspx?sec=sup&sub
=wom&pag=dis&ItemID=605950
Technique Driving the Digital Mammography
Market http://healthsystemcio.com/2012/04/10/klas-new-technique-
driving-the-digital-mammography-market/
Financial Times – Hologic http://markets.ft.com/Research/Markets/Tearsheets/
Summary?s=HOLX:NSQ
WWW.HOLOGIC.COM
Zii Wakiko
Nesrine Andy
MAN
105Team
Work Cited
We agree with the Hologic’s Marketing strategy since:
• Its develops long term strategies and plans to drive
growth in existing / new product areas.
• Conducts analysis to understand business performance
and competitors
• Plans market research by supporting customer seg-
mentation and product penetration
• Understands/tracks critical environmental forces
• Identify new markets; product extensions that will
support continued business.
• Partners with strong manufacturers for worldwide
distribution
Team Recommendation
However Hologic has weaknesses and threats as shown in
SWOT analysis, so our recommendations are:
• Cooperating with hospitals/medical institutions, by
landing or renting products and providing free lectures.
• Geting new patients, by providing FREE physical
examination. Introducing the hospitals that Hologic has
agreement with, patients can use these hospitals for
examination.
• Focusing on the 7P’s by having strong stories from
people, physical evidences with lab reports and press
releases and the process based on diagnostic accuracy
to smoothly keep the trust of customers/patients.
