Business Analysis: St. Jude Medical Inc.
Business description
St. Jude Medical Inc. was founded in 1976 and headquartered in Saint Paul, Minnesota. The Company develops, manufactures and distributes medical devices. The company operates in two divisions Implantable Electronic Systems, and Cardiovascular and Ablation Technologies. The company sells its product through direct sales and independent distributors
St. Jude has four main business segments: Cardiac Rhythm Management (CRM) (59% of net sale) Cardiovascular (20%), Neuromodulator (14%), and Atrial Fibrillation (7%). St. Jude Medical Inc. is one of the three principal manufactures and suppliers in global Cardiac Rhythm Management market
St. Jude Medical Inc. develops innovative product that reduce health care cost and improve …show more content…
R. Bard, Inc (BCR), Abbott Laboratories (ABT), Boston Scientific Inc (BCR). The medical devices are usually close enough that either would effectively treat the patient’s condition, that causes St Jude Medical’s products have a lot substitutes. Also, substitute products exist for some types of medical devices but not all, such as pharmaceuticals substitutions. Moreover, due to the rapid biotechnology development, the certain devices will become out of date which is many device manufacturers’ concerns. Looking into the future, there is a significant threat that biological breakthroughs could radically alter the medical device industry by giving the patients effective treatment options that do not require a medical device. Hence, the threat of substitutes is correspondingly moderate since the demand for the products in general is strong and is …show more content…
Changes in Healthcare: Even the slightest change in healthcare can affect STJ. Most notably new regulations could cause new technology to not go to market due to insufficient testing of products. This could slow production of new products and will cause companies such as STJ to pay more for extra test trials. With the rising cost of healthcare hospitals have raised prices on items and procedures that can cause an increase in cost for new technology to enter the process.
Rapid Technology Advances In the medical devices industry new technology eventually over take the conventional technology. With competition being so fierce in the medical devices field. Compromising is not an option. Cheap competitive devices/products do not necessarily mean good quality. So technology makes these devices more risky
Patents:
Considering having new technological breakthroughs with medical devices are important so is protecting patents. Recently STJ hasn’t really had a huge lawsuit under way but constant protecting of Intellectual Property is a
St. Jude Medical Inc. was founded in 1976 and headquartered in Saint Paul, Minnesota. The Company develops, manufactures and distributes medical devices. The company operates in two divisions Implantable Electronic Systems, and Cardiovascular and Ablation Technologies. The company sells its product through direct sales and independent distributors
St. Jude has four main business segments: Cardiac Rhythm Management (CRM) (59% of net sale) Cardiovascular (20%), Neuromodulator (14%), and Atrial Fibrillation (7%). St. Jude Medical Inc. is one of the three principal manufactures and suppliers in global Cardiac Rhythm Management market
St. Jude Medical Inc. develops innovative product that reduce health care cost and improve …show more content…
R. Bard, Inc (BCR), Abbott Laboratories (ABT), Boston Scientific Inc (BCR). The medical devices are usually close enough that either would effectively treat the patient’s condition, that causes St Jude Medical’s products have a lot substitutes. Also, substitute products exist for some types of medical devices but not all, such as pharmaceuticals substitutions. Moreover, due to the rapid biotechnology development, the certain devices will become out of date which is many device manufacturers’ concerns. Looking into the future, there is a significant threat that biological breakthroughs could radically alter the medical device industry by giving the patients effective treatment options that do not require a medical device. Hence, the threat of substitutes is correspondingly moderate since the demand for the products in general is strong and is …show more content…
Changes in Healthcare: Even the slightest change in healthcare can affect STJ. Most notably new regulations could cause new technology to not go to market due to insufficient testing of products. This could slow production of new products and will cause companies such as STJ to pay more for extra test trials. With the rising cost of healthcare hospitals have raised prices on items and procedures that can cause an increase in cost for new technology to enter the process.
Rapid Technology Advances In the medical devices industry new technology eventually over take the conventional technology. With competition being so fierce in the medical devices field. Compromising is not an option. Cheap competitive devices/products do not necessarily mean good quality. So technology makes these devices more risky
Patents:
Considering having new technological breakthroughs with medical devices are important so is protecting patents. Recently STJ hasn’t really had a huge lawsuit under way but constant protecting of Intellectual Property is a