Subject category:
Production and Operations Management
Published by:
INSEAD
Version: 05.2014
Length: 9 pages
Data source: Field research
Abstract
The case documents the evolving characteristics of the contact lens market, driven by rapid technological innovation. The introduction of disposable contact lenses has transformed this business from a low-volume, high-margin market place to a high-volume, low-margin one. This transformation necessitated a drastically new supply chain solution, which would significantly reduce manufacturing and distribution costs while preserving the close relationships CIBA Vision enjoyed with the health care professionals in the local markets.
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Abstract
The case documents the evolving characteristics of the contact lens market, driven by rapid technological innovation. The introduction of disposable contact lenses has transformed this business from a low-volume, high-margin market place to a high-volume, low-margin one. This transformation necessitated a drastically new supply chain solution, which would significantly reduce manufacturing and distribution costs while preserving the close relationships CIBA Vision enjoyed with the health care professionals in the local markets.