Ann: Progress update, page-3

From the Shaw report.

"Medline manufactures its own incontinence products in Atlanta, Georgia. It currently has 30% of the US adult diaper market which it wants to grow to 50%. SIM is part of its strategy to take market share. Medline will bundle SIM with its own diaper supply; and distributes into 60% of US aged care sites. Within this 60% its products are well represented in half and it has a less than dominant position in the other half, which correlates with its estimated market share of ~ 30%.

Our enquiries suggest that Medline will initially use SIM to penetrate the 30% of the US market that it is currently underrepresented in, and the 40% it has no representation in"



In other words Medline, at least initially, does not appear to be selling to the markets it is already a major player in. To do so would result in lower sales of its own adult diapers.

I am not sure this is a good strategy - imagine being a major buyer of Medline products and finding out that Medline are only selling a significant time/cost saving technology (SIM) to everyone but their main customers.


Mal