Invacare 2011 Annual Report Download - page 14

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Europe
The company’s European operations operate as a “common market” company with sales throughout Europe,
the Middle East and Africa. The European operations currently sell a line of products providing room for growth
as Invacare continues to broaden its product line offerings in line with the company’s One Invacare strategy.
Most wheelchair products sold in Europe are designed to meet specific market requirements. The company
manufactures and/or assembles both manual and power wheelchair products in the following countries:
United Kingdom, France and Germany. Manual wheelchair products are also manufactured and/or assembled in
Portugal, Switzerland and Sweden. Beds are assembled in Sweden and Portugal. Personal care products are
manufactured in Germany and also purchased from China; and Dolomite products are principally purchased from
China and Mexico. Respiratory therapy products such as concentrators and HomeFill®oxygen systems are
imported from Invacare’s U.S. or China operations.
For information relating to net sales by product group, see Business Segments in the Notes to the
Consolidated Financial Statements included in this report.
WARRANTY
Generally, the company’s products are covered from the date of sale to the customer by warranties against
defects in material and workmanship for various periods depending on the product. Certain components carry a
lifetime warranty.
COMPETITION
North America and Asia/Pacific
The home medical equipment market is highly competitive and Invacare products face significant
competition from other well-established manufacturers and distributors. The company believes that its success in
increasing market share is dependent on providing value to the customer based on the quality, performance and
price of the company’s products, the range of products offered, the technical expertise of the sales force, the
effectiveness of the company’s distribution system, the strength of the dealer and distributor network and the
availability of prompt and reliable service for its products. Various competitors, from time to time, have
instituted price-cutting programs in an effort to gain market share and may do so again in the future.
Europe
As a result of the differences encountered in the European marketplace, competition generally varies from
one country to another. The company typically encounters one or two strong competitors in each country, some
of whom are becoming regional leaders in specific product lines.
MARKETING AND DISTRIBUTION
North America and Asia/Pacific
Invacare products are marketed in the United States and Asia/Pacific primarily to providers who in turn sell
or rent these products directly to consumers within the non-acute care setting. Invacare’s primary customers are
home medical equipment (HME) providers. The company also employs a “pull-through” marketing strategy to
medical professionals, including physical and occupational therapists, who refer their patients to HME providers
to obtain specific types of home medical equipment.
Invacare’s NA/HME sales and marketing organization consists primarily of a sales force which markets and
sells Invacare®branded products to HME providers. Each member of Invacare’s HME sales force functions as a
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