Monday, July 16, 2012

Markets in Everything: Blood for Profit

FORBES -- "The supply chain for blood hasn't changed in seven decades—a system that Minneapolis-based General Blood is trying mightily to disrupt. Instead of relying on collection from local donors, then selling to hospitals within driving distance, why not buy cheaply from centers in ­America’s vast midsection and distribute overnight to hospitals on either coast, underpricing rivals like the Red Cross?
 
But it’s not so easy to disrupt a $4.5-billion-a-year business, even a sclerotic one. For one thing, the tide of supply and demand changes as dramatically as Old Muddy. For another, it’s tough to dislodge old ways of doing things—especially in a market where the biggest player, the American Red Cross, controls 44% of the blood supply and has the ability to distribute nationally, depending on the needs of particular areas."

Updated with link to article and correction in first sentence. 

6 Comments:

At 7/16/2012 2:42 PM, Blogger Moe said...

Mr. Perry,
Maybe provide article link, and I think the opening sentence should read " ..that has not changed in seven decades..."

Regards,

 
At 7/16/2012 3:01 PM, Blogger Jon Murphy said...

Moe:

Here is the article

 
At 7/16/2012 3:06 PM, Blogger Moe said...

Yes I found it earlier - Mark usually provides it, I thought he might have overlooked it.

Thanks Jon

 
At 7/16/2012 4:00 PM, Blogger juandos said...

First thing that came to mind looking at the headline was all the silly movies and television programs (most involving teen aged angst) involving vampires and the like...

Talk about blood for profit...:-)

 
At 7/16/2012 6:40 PM, Blogger Mark J. Perry said...

Sorry, I forgot to include the link and left out some words in the first sentence, it's corrected now. I was traveling all day or would have corrected it sooner.

 
At 7/17/2012 4:32 AM, Blogger Speedmaster said...

Wait, the Red Cross charges hospitals for blood?! I'm naive, I assumed that after all the cajoling re: how important it was to donate that they did the same.

 

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