ODEL S.p.A. products belong to the industry of electrical medical devices to be installed in medical offices and hospitals, both private and public .
Technology and materials used to produce electrical medical devices, and especially X-Ray devices, have changed much with time. Single phase current devices have gone on to 3-phase, solid state circuits, and now to high frequency.
Industry standards have played a growing role from the viewpoint of safety, quality and reliability, and this has been important in increasing sales and opening international markets.
ODEL S.p.A. management has focused on the following critical factors on which the Company success is based:
Until recently the international market of electrical medical devices was separated by different standards, peculiar to each country (for instance British, French and Spanish standards), which limited the export of new products to other countries. Since the beginning of 1993 the European Union standards have harmonized all others and made unnecessary the certification of each product by single states. The Italian market, which had its proper certification standards, has now embraced those of the European Union.
ODEL since 1963 obtained the certification of its X-Ray devices in France. This shows the quality and reliability of its products, which are manufactured according to the strictest standards and are appreciated by discriminating international customers.
Competitors on the world market can be classified as:
Large manufacturers have a significant market share and offer to customers a complete range of products of high technical quality at reasonable prices. Their competitive position is enhanced by the high quality of their service.
Next to large manufacturers there is a high number of small to medium companies that operate in market niches formed by:
Small to medium manufacturers have the following features:
Also the distribution structure of the two categories of manufacturers differs.
The distribution structure can be summarized as follows:
agencies – re-sale/installation organizations – individuals – other manufacturers
Large international manufacturers can use any of the above entities, as they have a good image and large financial means. Small to medium manufacturers can only use re-sale/installation organizations, establishing a relationship of mutual trust.
Generally speaking ODEL S.p.A. sells devices that may need a period of introduction of 3 to 5 years and have a life cycle of 5 to 7 years. As a consequence its sales are as cyclical as those of appliances. ODEL S.p.A. market share vary depending on the type of device. The highest market shares are in high frequency 3-phases devices, while 1-phase devices, greatly appreciated in the past, currently enjoy less popularity because of the new technologies.
On the Italian market ODEL S.p.A. has a small share on account of the fierce competition by large manufacturers. On the international market the share of ODEL S.p.A. in France and Great Britain may be considered quite high, taking into account the size of the Company. Other sales are made on several other markets - European, African, Middle Eastern and South American - where the buying power depends largely on the ups and downs of local economies.