Medtronic External and Internal Analysis
Strategic Audit Project
Part II: External and Internal Analysis Paper
Medtronic Inc. can easily be compared to le Concorde, a turbojet supersonic passenger airliner first flown in 1976. This jet was more than twice as fast as any other airliner ever created, flying at speeds of up to 1,350 mph. The capability to fly at more than twice the speed of a regular airliner equates to twice the flights and premium prices for this astonishing service. The resulting profitability of le Concorde is what puts this machine at the top of its class. In 1957, Medtronic founder Earl Bakken created Medtronic’s Pacemaker, the first wearable device to treat abnormally slow heart rates. The Pacemaker is now the staple product of Medtronic and can be compared to le Concorde for its innovation, efficacy, and profitability. This is just one example of Medtronic’s ability to use its innovation to transform the treatment of chronic disease worldwide. The firm has been a leader in the Medical Device Manufacturing industry for over two decades, developing and manufacturing innovative medical devices to treat more than seven million patients each year. Its products include pacemakers, defibrillators, heart valves, and stents, among others. Medtronic’s drive for excellence is best summed up by its corporate mission, “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” (Medtronic.com).
To achieve its goals and maintain success, Medtronic must constantly monitor and evaluate its external environment and the forces in it that could affect the company. The Medical Device Manufacturing industry is exposed to numerous forces and trends that can generate opportunities for firms to exploit as well as threats for firms to avoid. Of note are the effects of rivalry, buyers, regulation, and globalization trends.
The Medical Device
Part II: External and Internal Analysis Paper
Medtronic Inc. can easily be compared to le Concorde, a turbojet supersonic passenger airliner first flown in 1976. This jet was more than twice as fast as any other airliner ever created, flying at speeds of up to 1,350 mph. The capability to fly at more than twice the speed of a regular airliner equates to twice the flights and premium prices for this astonishing service. The resulting profitability of le Concorde is what puts this machine at the top of its class. In 1957, Medtronic founder Earl Bakken created Medtronic’s Pacemaker, the first wearable device to treat abnormally slow heart rates. The Pacemaker is now the staple product of Medtronic and can be compared to le Concorde for its innovation, efficacy, and profitability. This is just one example of Medtronic’s ability to use its innovation to transform the treatment of chronic disease worldwide. The firm has been a leader in the Medical Device Manufacturing industry for over two decades, developing and manufacturing innovative medical devices to treat more than seven million patients each year. Its products include pacemakers, defibrillators, heart valves, and stents, among others. Medtronic’s drive for excellence is best summed up by its corporate mission, “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” (Medtronic.com).
To achieve its goals and maintain success, Medtronic must constantly monitor and evaluate its external environment and the forces in it that could affect the company. The Medical Device Manufacturing industry is exposed to numerous forces and trends that can generate opportunities for firms to exploit as well as threats for firms to avoid. Of note are the effects of rivalry, buyers, regulation, and globalization trends.
The Medical Device
Bibliography: Boston Scientific Annual Report Hollister, Sean. “Medtronic debuts tiny lead-less pacemaker at TEDMED 2010.” Engadget. http://www.engadget.com/2010/10/28/medtronic-debuts-tiny-lead-less-pacemaker-at-tedmed-2010/. 28 October 2010. Ibisworld.com Jayson, Seth. “How Are the Margins at Medtronic?” The Motley Fool. http://www.fool.com/investing/general/2010/10/27/how-are-the-margins-at-medtronic.aspx. 27 October 2010. Lee, Thomas. “Weak economy aids Medtronic’s acquisition strategy.” MedCity News. http://www.medcitynews.com/2010/09/weak-economy-aids-medtronics-acquisition-strategy/. 15 September, 2010. Medtronic Inc. Annual Report Medtronic.com St. Jude Medical Inc. Annual Report Yahoo!Finance.com Johnson, Brian. “MassDevice Podcast: Medtronic CEO William Hawkins”. November 2, 2010. http://www.massdevice.com/features/massdevice-podcast-medtronic-ceo-william- hawkins