Medtronic case ppt

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  This is a Dean's Case Competition project in Som-Binghamton University. I did it with my team in Spring 2014 to present our the overall situation of Medtronic Inc.
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  • 1. Medtronic Inc. By Joseph Ocello, Han Shi, Lei Ma, Yiu Lun Lai, and Hangcheng Chen
  • 2. Agenda 1. Recommendation 2. Introduction 3. Porter’s Five Forces 4. SWOT Analysis 5. Risks 6. Technology Application 7. McKinsey Analysis 8. Financial Analysis 9. Social and Ethical Responsibilities 10. Action Plan
  • 3. Recommendations 1. Settle down pending lawsuits 2. Maintain brand reputation 3. Pursue emerging markets eg: China and Mexico 4. Pursue markets that have high standard of regulation 5. Offer discount for trading outside U.S. if using U.S. dollar as a transaction unit 6. Continue to invest in and develop advanced technology 7. Increase source suppliers
  • 4. Introduction Medtronic, Inc: 1. Founded in 1949 in Minneapolis 2. One of the largest medical manufacturing companies in North America 3. Has two major business units, the Cardio and Vascular unit, and the Restorative Therapies unit.
  • 5. Porter’s Five Forces 1. Threats of new entrants = low 2. Bargaining power of buyers = high 3. Threat of substitute products/services = medium 4. Bargaining power of suppliers = high 5. Rivalry amongst existing competitors= high
  • 6. Internal SWOT Analysis Strength: 1. Global presence 2. Innovation leader 3. Asset Leverage 4. Strong market position 5. Diverse product portfolio Weaknesses: 1. Heavy reliance on U.S. markets 2. Tarnished brand reputation External Opportunities: 1. Emerging markets 2. Strategic Acquisitions 3. New product launches and approvals 4. Growing incidence of cardiovascular disease Threats: 1. Pending lawsuits 2. Patent & property rights protection 3. Government regulations 4. Mature markets
  • 7. Technology Application 1. Medtronic is spending about 10% of its sales to research and development efforts. 2. Minimally invasive products and technologies that treat a wide range of ear, nose, and throat (ENT) conditions; business has distinguished itself as a global leader in less-invasive surgical navigation systems. 3. Medical technologies include angioplasty technology, stent graph and heart valve and valve repair. 4.Cardiac Rhythm Disease Management for heart rhythm therapy 5. Medtronic takes advantage of electrical stimulation to treat diseases and conditions involving the nervous system. 6. World leader in diabetes management due to glucose monitoring system diabetes management software
  • 8. Risks Marketing Risks: 1.Major revenues locate in U.S 2.A big threat - consolidation of competitors 3.Competition from small manufacturers and alternative medical therapies Operating Risks: 1.Constraints from suppliers 2.Medtronic may fails to integrate with other business when it adopt to consolidation
  • 9. Risks (continued) Financial Risks: 1. A lot of lawsuits adversely affect the investor confidence 2. The cash flows of Medtronic have declined 3. Price war may lower the margin profit Technological Risks: 1. The innovative technologies constantly face the risk of infringement 2. Medtronic is increasingly dependent on sophisticated information technology for its products and infrastructure Legal Risks: 1. Medtronic is regulated by many government agencies such as the FDA and comparable foreign agencies
  • 10. McKinsey Analysis 1. Medtronic competes in an attractive industry with low threat of competitors 2.Penetration of profitable emerging markets: India, China, Mexico 3. Medtronic’s core competency is its product innovation; distinctive competencies include high standards for its products, customization, and a diverse product portfolio 4.Core business units of: Cardio and Vascular and Restorative Therapies 5. Global leader in less-invasive surgical navigation systems and diabetes management 6. Invest heavily in its business units because Medtronic plays in a high to medium attractive industry with strong business units
  • 11. Social Responsibility and Ethics 1. The medical industry in which Medtronic competes also has faced strong regulation 2. Ethics play a strong role in the design and production of the products because of the fatal consequences of poorly engineered and produced medical equipment. 3. An environmental ethical issue comes with the nature of the industry and its heavy reliance on disposable products
  • 12. Financial Analysis
  • 13. Action Plan
  • 14. Thank You Any Questions?
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