Healthcare 2020 Case

Healthcare 2020

The Profit pool data which Bain & Company used for global healthcare in 2010 were based on their own analysis and a few external sources, such as OECD (Bain & Company, n.d.). They states:

The methodology Bain used for developing this profit pool analysis is based on detailed health sector revenue and EBIT margin analysis for US and global sectors. The sector revenues are based and triangulated on latest market reports; the sector margins are based on company annual reports; the 2010-2020 CAGRs are based on market reports, where available, and Bain estimates; and the margin changes from 2010 to 2020 are based on proprietary Bain analysis (Bain & Company, n.d.)

This clearly shows some limitation to implement the research in reality, because they picked only top 50 brands' financial reports and the nations included in this graph are not shown at all, even though it should be 'Global'.

WHAT IS THE DATA SOURCE YOU NEED TO MAKE PROFIT POOL

First of all we need to state what value chains for an industry are. Bain & Company already provided the list of value chain, however, it is also possible to find it by simply searching through reliable database, for example Business monitor international.

Although it is spread in every different nation, we can find the common value chains including its percentage of share, in every report.

Secondly, we need to find the financial reports and observe EBIT margin of each companies that are included in healthcare industry. It is accurate, but time wasting to look up the entire individual companies web sites for the data, since we can just search here as well.