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Glenwood Options - Coggle Diagram
Glenwood Options
Sell directly to Canadian end-users rather than Wholesalers
Revenues per unit received at a loss by collecting receivables from wholesale customers
Medical supplies wholesaling industry booming
Hospitals were 43.1% of demand
Med prof were 39% of demand
Challenges
Canadian govt reducing health care expenses, thus reducing inventory
Group Purchasing Organization bought in bulk on behalf of Med Prof at reduced prices
Medical supplies are price sensitive
76% of Glenwood revenue
$1.6M in revenue
Find non-medical office customers for oxygen cylinders
Medical device industry is slowing
Not in the business of sales
Oxygen cylinders only represent 2% of annual revenue
Growth potential is limited due to lack of repeat sales
Company Stats
$2.1M 2017 Revenue
8-16% annual growth
$2.31M forecasted growth in 2018
$25,000 Cylinder cost
Sold for $40,000 (60% markup)
Look for non-US foreign suppliers
O2 suppliers need to meet expensive standards ~100K for audits and compliance
Competitive advantage is response time. Foreign companies cannot provide that (90 days) at feasible scales (3yr supply) for Glenwood
Only option is a coopetition with other competitors to split a 3yr supply order. Complicated.
Criteria
Deal with cost increases
Mitigate future risk of tariff changes
Products
Medical Devices
Filled oxygen tanks
Medical Supplies
Empty oxygen tanks
Cannulas