Sonova

Sonova dominates the $10B+ hearing aid industry by vertically integrating from component manufacturing to retail distribution. Founded in 1947 as Phonak, the company owns the entire value chain: microphones and processors (manufacturing), brand portfolios (Phonak, Unitron), audiology clinics (retail), and insurance relationships (reimbursement). This vertical integration captures 30-40% gross margins that pure manufacturers or retailers alone can't achieve. The hearing aid market also benefits from demographic tailwinds: aging populations in developed countries create inelastic demand - hearing loss severely impacts quality of life, making customers price-insensitive once they decide to buy. Sonova's $3.5B+ revenue proves that in medical devices serving aging demographics, controlling distribution matters as much as product technology.