Ok, what is a Confusopoly ?
Definition: A confusopoly refers to a market strategy where market leaders intentionally create complexity around their products or services, making it nearly impossible for consumers to easily compare options based on price, features, or quality. This tactic is particularly evident in the realm of large medical device companies, where the intricacies of product offerings, pricing models, and technical jargon can obscure transparency, hinder informed decision-making, and lead to customer inertia, effectively locking in healthcare providers and ultimately affecting patient care and costs.
How do the big 7 Orthos leverage Confusopoly tactics to keep out the competition?
The Ortho Industrial Complex (aka the Big 7 Orthos – J&J MedTech, Medtronic Spine, S+N, Stryker Ortho, ZB, Arthrex, Glovasive) carries out confusopoly tactcis in 5 ways.
- Product Complexity: These companies often offer a vast array of products, from different types of implants like hip and knee replacements to various spinal fusion devices. Each product might have multiple versions or configurations designed for specific surgical needs or patient demographics. This complexity makes it challenging for both healthcare providers and patients to compare products directly. For instance, Stryker, Zimmer Biomet, and Medtronic provide a wide range of orthopedic devices, each with unique features, materials, or surgical techniques, which can be overwhelming for decision-makers.
- Pricing Opaqueness: Pricing strategies can be opaque, involving bundled deals, discounts that depend on volume or long-term contracts, or rebates that are not immediately clear. This can lead to confusion about the actual cost of devices, especially when considering additional expenses like surgical tools, training, or post-operative care. Companies might also use different pricing for different markets or through various distributors, further complicating price comparisons.
- Technical Jargon and Specialized Knowledge: The use of medical and engineering jargon is rampant in this sector. Terms like “bioabsorbable implants,” “minimally invasive techniques,” or “robotic-assisted surgery” require a deep understanding that not all surgeons or hospital procurement officers might possess. This can make it hard for non-specialists to critically evaluate product claims or innovations.
- Proprietary Systems and Integration: Companies might develop proprietary systems or technologies that work best with their own devices, creating a lock-in effect. For example, if a hospital invests in a particular company’s surgical navigation or robotics system, there’s an incentive to continue using that company’s implants due to system compatibility, even if better or cheaper alternatives exist. This integration can make switching to another vendor seem more complex or less beneficial.
- Marketing and Branding: Through strategic marketing, companies might emphasize brand recognition over the specifics of product performance or cost. They might promote new technologies or slight variations on existing products with aggressive marketing campaigns, focusing more on brand loyalty than on clear, comparative product information. This can confuse consumers by focusing on perceived innovation rather than tangible benefits or comparative advantages.
These tactics collectively contribute to a market where making informed decisions becomes more challenging, potentially leading to higher costs for healthcare providers and ultimately for patients, less competition on price or quality, and a reliance on brand familiarity rather than product merit. However, it’s worth noting that while these tactics can resemble confusopoly strategies, they are also part of competitive business practices in a highly specialized field where product differentiation is key.