Stryker Business Case

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  • Topic: Medical technology, Medical device, Medical equipment
  • Pages : 14 (4742 words )
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  • Published : October 11, 2012
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Summary of Stryker Corp:

Stryker Corporation is a medical technology firm, which develops and manufactures: medical implants, surgical and imaging technologies, as well as patient handling and emergency medical equipment produced for the healthcare industry. Stryker competes in the Medical instruments industry. The medical instrument industry provides consumers and society with many varying products and services that use technology to meet their health needs. More specifically Stryker instruments are used in reconstructive surgeries including hips, knees, and spinal injuries that need to be rebuilt or enhanced. Stryker is not only limited to reconstructive surgeries, but also create the equipment necessary to perform surgeries including operation rooms and general health-care equipment [1]. Stryker and other medical instruments producing companies provide doctors and surgeons with the necessary equipment for surgeries and patient care.

Medical Technologies Industry:

The size of the worldwide market for Medical Technology for the year 2011 was stated to be approximately $228.7 Billion [1]. Of that total market Stryker competes in the following segments: reconstructive, Medical Surgery, and Neurotechnology and Spine. These three segments that Stryker competes in combined is equal to $67.6 Billion of the overall $228.7 Billion medical technology industry [1]. There are many different players in the medical instrument, but Stryker is a market leader in the medical instruments industry. In the year 2011 Stryker was the tenth largest medical technology company Worldwide based on sales revenues earned. The top four players of the Medical Technology industry include: Johnson & Johnson, G.E., Siemens, and Medtronic with respective sales in 2011 ranging from $25.8 Billion at the top to the lowest at $15.9 Billion. In 2011 Stryker reported $8.3 Billion in sales revenue, which is significantly less than the medical technology giant Johnson & Johnson, but $8.3 Billion is still a healthy and large amount of sales for one fiscal year [1].

Strykers Market Share:

Stryker is a Medical Technology firm, but operates in three specific segments of the medical technology market. For the reconstructive surgery segment it is a $24.8 Billion industry, and Stryker has captured 15.6% share of the reconstructive segment [1]. Another segment that Stryker focuses on is the Medical Surgery segment, which is approximately $32.3 Billion in size, and Stryker has captured 8.5% of this segment [1]. More specifically in the Medical Surgery segment, operating room equipment falls into this segment, and sales totaled $3.2 Billion in 2011, which Stryker accounted for 35% of sales for O.R. equipment [1]. The last segment that Stryker focuses on is the Neurotechnology & Spine a $10.5 Billion industry and Stryker holds 12.8% of this total segment [1].

Figure 2 represents the reconstructive segment [1]

Figure 3 represents the MedSurg market segmentation [1]

Stryker’s Strategy:

Stryker’s products and services competitive advantage use two different strategies. Stryker has segmented the Medical Technology market into three different segments to focus, and has captured a sizable portion of each of these segments. This source of competitive advantage is known as a focus strategy in which an organization such as Stryker provides products and services for a specific segment of the market. For example Stryker manufactures the tools and supplies for a reconstructive hip replacement surgery, this is an extremely specific product that an individual will only need to replace an old fractured hip. This product is only intended for an individual in need of surgery, and targets a very specific consumer rather than a mass audience. Reconstructive surgery is focused to a specific medical technology segment, and is common and expensive in older age groups of the population. Another source of competitive advantage for Stryker is that their products...
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