“Quicklook” Assessment of Greater Adelaide's Assets & Challenges ...

• Barriers of getting products into their own hospitals
o Multinationals can bundle more than one product together – smaller
companies in SA cannot do this and are blocked out
o They have not invested in developing relationships with hospitals.
Sometimes they just lack business savvy.
o Go to clinician to get them to help develop next generation products.
• Example: local manufacturing making titanium, but they import instead
at double the costs(tall poppy syndrome because one of the owners is
one of the surgeons that does the surgery – the doctor should sell his
portion of the company)
o People prefer to buy locally if they can, but this doesn’t cover the health
sector.
o A few years ago they lauched a campaign to ‘buy Australian’ but there
was a ZERO result in sales increase.
o Dick Smith is raising the profile again for Australian products. Extortion
threat against a company called Heron – Panadol was the other product
(but it is still made in Australia). This has focused the media on the issue
again. At the end of the day, the quality needs to be as good and the
price comparable.
Dynek Case Study
Patricia ????? started Dynek with $3k and an idea – came out of Johnson and Johnson
(she is a salesperson).
• Thought the market was easy but quickly learned that they were “treading on the
hallowed ground of large multi-nationals”
• Realized that they would have to go global quickly in order to survive. Started in
1974.
• Australia didn’t understand that they should support health issues here – still on
going because of large importing. Attitiude was that Aussie goods aren’t good
quality (here in Australia).
• Manufacturing base is not great – overcome that now – they are CE marked, but
have not worried about FDA just yet.
• Issue was that they had a good quality product, but was not recognized here until
2 yrs ago. They tend to specialize and find a niche market – go in low under
radar.
• 1993, the Brown govt (liberal) came in and invited her on the SA development
council. Talked about what they could do about small businesses. Patricia was
the one talking to them about health being a significant business “health is wealth”
• They gave her money to make a video (but attitude was, fine, but you will have
problems finding enough health industries) – in actuality they could have done a
miniseries! They have identified 24 industries.
• Finally, she convinced them that ‘health is wealth’ and they did some statistics on
health. In the 3 areas on the video, they found that there was a $2 B market.
• They have talked about changing the name ‘health’ to ‘wellness’
• The council was disbanded because it became too powerful. So it changed from
SA development council and it turned to Business Vision 2010. Patricia is
potentially going to be president of the business council.
• Women are starting to make inroads into government (CEO of city council, etc.)
COMMERCIAL IN CONFIDENCE
80