Monday, July 31, 2000
Shifting Supplier Space
Size affects strategy
The life science supply market is segregating into supermarket
companies providing a broad range of reagents and consumables, players combining
instrumentation and reagents in multiple well-defined application niches, and
smaller companies occupying a single niche. For the large and mid-sized companies,
it appears that growing ever larger is a prerequisite to remaining competitive.
For the smaller niche players, product branding - as opposed to company branding
- appears to be key.
"If you want to be a supermarket company, size is important,"
said Richard Cumming, vice president of marketing for laboratory products at
Amersham Pharmacia Biotech Ltd. (Uppsala, Sweden). "And there certainly is a
theme in terms of consolidation in the market - it's a reflection of the way
things are moving."