Topics: Costs, Cost, Cost-benefit analysis Pages: 1 (373 words) Published: April 29, 2013
1. The case mentioned that one of Synthes’ capabilities was that sister company, Stratec begun to manufacture bioresorbable trauma implants, and Synthes can outsource production of some bioresorbable plates and screws. Is Synthes going to use Stratec’s technology as well or the company is going to develop by itself? And what are the pros and cons of this partnership? Explanation: It will be cost effective if Synthes plan to outsource at Stratec and use Stratec’s plates and screws with the concern of economy of scale and save the R&D costs; however, Synthes will pay more attention to its relationship with Stratec in case the relationship breaks up and Synthes loses the manufacture segment of plates and screws. It is necessary to analyze the pros and cons of partnering with Stratec. 2. It seems that bioresorbable implants are not completely safe and ready for use. Plus, Synthes has no previous experience with this. Do you think it is worth to reallocate a part of the resources and put them into developing bioresorbable implants? Explanation: Synthes was an industry pioneer in metallic implants, and currently, metallic implants are more widely used and accepted. Although bioresorbable implants seem to be the new trends, it is debatable if Synthes should set a part of its resources apart and start developing the new product, not to mention that the tests and use of bioresorbable implants are very limited. In the end, it might just be a waste of time to develop bioresorbable implants. 3. Do you think Synthes should develop second generation bioresorbable implants or the third generation one? And what are some of the pros and cons for either of the alternatives? Explanation: Compared to the first generation bioresorbable implants, second generation improved significantly both in safety and effectiveness. But there are still some problems and public acceptance is not improved much. With the pros and cons of developing the second generation...
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