“Global rules and local survives well” is the correct statement to describe the potential of this industry sector. Free from the clutches of the patent this sector is under a patronage of all the concerned organizations. Many investors feel unsafe in this sector because it is a sector which is loaded with glorious uncertainties. In the terms of the state of the market, we can always say that it is a sector which is fragmented in the terms of the demand and supply.
Government policies play a vital role in the proliferation of this sector. As an investor one has to keep an eye on the budget allocation of the resources. Sometimes a surfeit of the money can play a boosting factor in a given geographical area. We cannot access the demand factor for this particular industry sector because we cannot predict the number of the patients in a given area during a season. However, most of the hospitals keep them in sufficient quantum to meet the emergencies.
Standardization and the pricing are two crucial factors that can bring down the performance of any company. Standardization often forces an organization to spend more money on the product and force them to increase the price. This is one area where international products can beat local products.
This sector enjoys tax holidays from time to time. This tax holiday helps them in keeping their profit margin on the higher side. Many international chains are striking strategic alliances with the countries and big authorities to ensure big deals. As an investor one has to keep an eye on these avenues and they can make big money. Gradually the organized sector is taking over the charge in the developing countries as well. Organizations like FDI and WHO are prescribing the high standards of the goods and the sanitization at these places and international players have adequate technologies to meet their demands.