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Ohmeda BOC

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This optimal strategy will allow Ohmeda to increase revenue, meet target customer needs, challenge competition, and capitalize on the strengths of the Ohmeda products. Business Strategy Ohmeda's business strategy is to no longer carry medical supplies and gas products, yet to increase equipment sales revenues by an average of 11% each year for 5 years...
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The current channeling structure consists of 50% Dealers and 50% Direct sales representatives arranged 100% geographically by region (Exhibit 1). This structure is both inefficient and ineffective, and must be adjusted to meet the change in product mix and aggressive sales goals. Deficiencies in the current channel include: overlap of dealer and direct representative sales, a disproportionate number of sales hours spent in rural hospitals, and the inability of sales reps to communicate the specifications of the technologically advanced products to medical specialist decision makers...
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