Dentsply announced yesterday that they will pare their US distribution from 200 partners to 28. The 28 currently represent 90% of Dentsply’s US sales. The question that should be on everyone’s mind is whether this is good or bad for our industry. I guess it depends where you sit.
Consolidation can offer as much opportunity as threat. Smaller dealers who will lose the line need product from somewhere to satisfy their customers’ needs. Most dentists want to have more than one supplier, so smaller dealers must re-examine their sources of supply.
Look at the this change as the rule rather than the exception, and realize that the “Ma and Pa’ industry that once was is long gone.
An article published yesterday in Knowledge@Wharton discusses the research of two Wharton professors, Paul Schoemaker and George Day (no relation). The professors have identified four key leadership traits: external focus, conceptual ability, organizational role, and time horizon. According to their work, vigilant leaders are more externally oriented (listen to new ideas, seek out other perspectives, and establish broader networks)–sounds like a woman to me–while operational leaders have less interest in outside opinions and tend to confine themselves to familiar settings. They use examples fom the goings on at Ford and the fiasco in India regarding Coke/Pepsi to explain why vigilant leaders have the edge. Read the full article here: http://knowledge.wharton.upenn.edu/article.cfm?articleid=1553&CFID=13082109&CFTOKEN=56019499
There is no better networking opportunity in the dental industry than the annual Oral Health America (OHA) Gala, which will be held next on February 22, 2007, in conjunction with the Chicago Midwinter Meeting. OHA works to increase visibility and public understanding of oral health. From Smiles Across America to the National Periodontal Disease Coalition, OHA programs are at the forefront of oral health.
The annual Gala is an essential fundraising event for OHA. They are seeking sponsors at the Gold Level ($2,000+) and Platinum Level ($5,000+). Sponsors get great visibility, both in pre-event publicity and at the event itself, and donations can be billed in 2006 or 2007. This is a great cause–please consider giving it your support. For more information, call Joe Donohue at 312-836-9900 or let us know of your interest.
Marketing Sherpa has reported an interesting study, in which 30% of prospects in the scientific community prefered audio-enhanced PowerPoint-style presentations to white papers, brochures, Web pages and webinars. The idea was fairly simple. They put together a set of slides, perhaps 10 or so, and posted them on their website along with an audio feed to talk viewers through the presentation. What they called ”On Demand Training” was a winner with both prospects and sales reps. This approach is ideal for the dental industry, where there is such a large visual component, both in showing products and procedures, and in displaying results.
For details and tips for a successful presentation, go to:
http://www.marketingsherpa.com/article.php?ident=29706
A recent article in the AARP newsletter talks about the silent epidemic in oral health care issues in older Americans. The article discusses the large group that suffers with dental problems because they can’t afford care with the high cost of dental insurance. Medicare does not provide dental coverage, so many older Americans are turning to charitable organizations for help. The sad part is that good oral healthcare can lead to overall systemic health. In a recent study, researchers from Columbia University and Aetna Insurance tracked 145,000 Aetna subscribers with diabetes, coranary artery disease or stroke. They found medical costs were lower among subscribers who had sought early treatment for periodontal disease.
Supporting organizations such as Oral Health America, The Fund for Dental Health and the ADA foundation is a good way to help ease this crisis and at the same time, give something back to the community.
This morning I’ve been watching the CNN coverage of 9-11 in real time. It’s difficult to watch, yet hard to tear yourself away from. One of the things that stands out is how the officials in charge, from the highest levels of government to the firefighters on the street, had great difficulty getting accurate information on which to base decisions.
Although it is obviously a completely different sphere, successful marketplace competition also depends upon obtaining good information. Business is often compared to war, with military metaphors a common way to discuss the battle (see?)to gain market share. Both business leaders and military commanders have to make decisions in a changing environment using the facts at hand. According to Warfighting: The U.S. Marine Corps Book of Strategy (Currency, 1995), “The very nature of war makes certainty impossible; all actions in war will be based on incomplete, inaccurate, or even contradictory information.”
The same might be said for the nature of the dental industry. Hardly a day goes by without a new rumor. Yet sound business decisions are based on solid information. That information can come from market research (end user surveys, focus groups, syndicated data) or informal data collected by talking with competitors, dealers, and opinion leaders.
If you need help obtaining good information, give us a call. Dental industry consultants can obtain information that would be difficult, if not impossible, for you to obtain on your own. Let us know how we can help you get the information you need to make sound business decisions.
Those of you in the dental industry who have never worked with a consultant may wonder what it is exactly that we do. The easiest way to answer is to suggest that you replace the word “consultant” with the phrase “trusted advisor.” The value we bring to most of our clients goes beyond simply helping them prepare a plan, develop a marketing strategy, improve their corporate image, sell their company, or perform whatever service they have requested. Our value is that we listen carefully, help frame the problem/challenge, and identify possible solutions. Then, using a broad base of dental industry knowledge and diverse industry contacts, we provide streetwise information and offer objective, truthful advice. An experienced dental industry consultant who has no vested interest and whose mind is open to many possible avenues can be extremely valuable. A trusted advisor you can call whenever necessary for input, advice, and guidance is (as they say on TV)…priceless.
A client of ours is facing a question that a growing number of companies in the dental industry are facing: should I sell my company? The owners of this company came to us for help in making a decision whether to expand OEM activities, go direct, go through dealers, or sell the company. As dental industry consultants, our assignment was to outline the advantages and disadvantages (as well as the costs and potential revenues) of each alternative. However, our first piece of advice was to carefully consider the personal and lifestyle goals of the owners. While expansion or additional investment offers the rewards of building a larger and more profitable company, divestment offers an immediate payout and the opportunity to pursue other endeavors. (Does the name Bill Gates ring a bell?) Ultimately, this kind of decision is a very personal one: what do you want to do with your life?