This paper is about a strategic overview of Medtronic Inc. Medtronic is a global leader in medical technology- alleviating pain, restoring health, and extending life for people with chronic conditions around the world. Medtronic conducts business in more than 120 countries developing and manufacturing a variety of products and therapies with emphasis on providing a complete continuum of care to diagnose, prevent and monitor chronic conditions. Mission Statement
The mission statement of Medtronic Inc. is to contribute to human welfare by application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health and extend life. It is evident that Medtronic is meeting their mission statement. Medtronic is providing doctors with new therapy procedures through their research and development. Medtronic is able to design and modify medical devices that assist and meet the needs of physicians around the world. In addition, Medtronic is conducting business in more than 120 countries and focused on preserving the lives of individuals with medical needs and plagued with chronic health conditions. Medtronic’s mission statement is firmly preserved in all of its employees around the world that want "to alleviate pain, restore health, and extend life.” It is apparent that Medtronic has not lost focus as to their purpose by the assistance to nearly 6 million people benefiting from therapies each year. Porter’s analysis of competition for Medtronic Inc.
Rivalry among competitors
Medtronic Inc. participates in the development, manufacture and marketing of medical devices. There are very few competitors in this field that include Johnson & Johnson, Guidant Corp., St Jude and Boston Scientific Group. Medical devices that are developed cost a considerable amount of money and if they have to be recalled these costs have to be absorbed. These recalls are viewed by competitors as an opportunity to move in a particular direction in medical device development. Because of the threats from competitors and their debatable actions dispute resolutions often transfer to court rooms for litigation to determine rights to patents. This often leads to the delay in product development and an increase in costs associated court determinations. Potential entry of new competitors
There are several obstacles that competitors will have to overcome in in the development, manufacture and marketing of medical devices. First, The Food and Drug Administration regulations are very specific and detailed. A competitor attempting FDA approval should expect a lengthy approval process. Once an approval is obtained they are not covered against product recalls that can cost a lot of money. Furthermore, recalls can tarnish the reputation of the company leading to a loss in consumer confidence. Secondly, the design and manufacture of medical products will require a solid understanding of the management of high end technologies. Next, competitors entering the market will spend a lot of money in the Research and Development in an economy where few companies willing to invest. Potential development of substitutes products
Medical devices are considered a minimally invasive form of treatment and are considered a substitute for more invasive treatment procedures used in the past. Medtronic has several departments all working on product lines and are susceptible to other companies developing similar devices with the same purpose. This drives certain secureness when new procedures and equipment are developed preventing a competitor from knowledge and profit. Bargaining power of suppliers
Just as the electronic industry, medical device makers send their work to a growing industry of contract manufacturers. These manufacturers do not have a lot of bargaining power due to the low customization of their work. The device makers do not rely on one...