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Contents contributed and discussions participated by Eric Bossert

Eric Bossert

Brazil's Diagnostic Medicine Market - Its Growth and Profits - 2 views

  •  After nearly three years on the market, Alliar – the diagnostic medicine group – continues with its aggressive expansion strategy with a total of 65 diagnostic imaging units in Brazil and reaching revenues of about R$310 million (US$125 million) and a 40 % average growth
  • Alliar’s growth has been in the range of 50% per year.
  • Alliar’s president has stated that “It’s a segment that has differentiated growth possibilities, more accelerated than healthcare in general”. “The sector is still very fragmented and therefore opportunities for consolidation still exist.”
  • ...11 more annotations...
  • Since the beginning Alliar has been taking advantage of the current Brazilian market forces that have health insurance companies setting up low prices for this particular line of services with significant detriment to its profit margins and a growing middle class expansion that have substantially increased its demand for medical diagnostic services.
  • Fleury SA (FLRY3) and Diagnosticos of America SA (DASA), Brazil’s biggest publicly traded diagnostics companies are Alliar strongest competitors, however, these are services in the major centers such as São Paulo and Rio de Janeiro. Thus, Alliar has focused in smaller cities having most of its units in São Paulo and Minas Gerais away from their metropolitan areas, areas that are not fully served by FLRY3 and DASA.
  • In 2010, a partnership between the Blackstone Group (NYSE: BX) and Patria Investments – Brazil’s leading private equity fund firm – was established allowing Blackstone to buy a 40% stake in Patria Investments with the goal of building their businesses in Brazil and throughout South America.
    • Eric Bossert
       
      Why would the Blackstone group want to build its reach into Brazil? I  am certain there are many other countries with booming markets. For example China.
    • Eric Bossert
       
      This interest the Blackstone Group has in Brazil is showing the theme of globalization as they try to reach out to places around the world for business.
    • Eric Bossert
       
      This article in general connects to our current chapter as it shows the interaction between a business service and a health service as they work together to better their own companies.
    • Eric Bossert
       
      This relates to services in the fact that it is smart of the Alliar Group to locate farther away from competition so that they have more of a pull on the people that live in the rural areas. This opposed to fighting for consumers in an already service filled area. 
    • Eric Bossert
       
      This relates to our previous chapter on industry. It does so as it brings up how strong Brazil's economy is getting. This shows it is indeed a BRIC country.
    • Eric Bossert
       
      This article reminds me a lot of horizontal integration in the trust days of the U.S.
    • Eric Bossert
       
      This is stating that since this company's particular service has so much variation it is easy to consolidate and grow.  
    • Eric Bossert
       
      http://www.businessoffashion.com/2014/02/brazil-fast-fashion-heats.html This other article describes how fashion businesses are trying to get into Brazil and take advantage of its strong economy.
  •  
    This article describes how a health service company is taking advantage of Brazil's booming economy to consolidate business and give itself an edge. This group has an annual growth of about 50% and shows the booming medical services. 
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