Journal of The American Academy of Audiology Discussion

Economics & Industry Dynamics of Sonova Holding AG

Economic variables affect the demand for goods and services. Factors such as inflation, interest rates, and consumer spending patterns have a direct impact on the company’s revenue. This paper tackles the impact of economics and industry dynamics on the present and future trends of Sonova Holding AG.

Sonova Holding AG specializes in the manufacture and marketing of hearing-aid devices (Donzé, 2022). Economic variables have affected the growth of specific key areas in the healthcare market. The projected growth of higher-priced hearing establishments and distribution networks has been greatly reduced by higher interest rates. The inflation of the wage bill, transportation costs, and component costs have affected the company’s income (Donzé, 2022). The general market inflation has shifted consumer spending patterns to substitute goods and services. The company’s sales in the current financial year 2022/2023 are similar to those of the past financial year despite the negative shift in market dynamics. The current pointers are evidence of lower revenue than previously projected. Journal of The American Academy of Audiology Discussion

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The company has a higher market share of 12.7% of total industry revenue in the manufacture of hearing aids (Folkeard, et al 2020). However, there is still competition from companies such as Medline, Teleflex, and Stryker (Folkeard, et al 2020). Although the company has the largest market share, competition is rising fast. The knowledge of the current market trends and economic dynamics calls for advanced innovation to cope with competition and maintain market share. A new product platform is projected to give the company an edge in the market. The prediction is that this will increase sales by 15%-19%. The total revenue is also expected to increase by 6%-10% all market dynamics considered. Journal of The American Academy of Audiology Discussion

References

Donzé, P. Y. (2022). Orthopedics SMEs and Pharmaceutical Giants in

Switzerland. In Medtech (pp. 153-171). Palgrave Macmillan, Singapore. https://link.springer.com/chapter/10.1007/978-981-16-7174-6_7

Folkeard, P., Bagatto, M., & Scollie, S. (2020

What is the impact of economic variables such as interest rates, inflation and consumer spending patterns on your firm? Briefly discuss how you think these factors will affect your firm in the coming year. An important part of this section is also to consider the industry dynamics that affect your firm as this forms the basis for understanding the economic environment in which your firm operates. For example, can you find information on market share and other competitive forces such as the number of competitors and the ease in which new competitors can enter this industry. This is similar to a SWOT Analysis but the important point is to be able to connect your analysis of industry issues back to your firm and form an opinion on the effect of these factors on the financial outlook for your firm. Journal of The American Academy of Audiology Discussion