Analysis of Income Statement Harvard Case Solution & Analysis

Analysis of Income Statement Case Study Solution

Given Imaging is an Israeli medical technology company. It has produced a disruptive, and innovative product called PillCam that could be used as an alternate to endoscopy which is also very expensive, uncomfortable, and painful for the patient.The PillCam is another best way to let patient swallow the capsule that has camera and would take photos, and would transfer it immediately. This product is disruptive and innovative in the market, but there is some concern that company has to address. One is that physicians and patients areaverse of the PillCam. Second is how should company compete with other major industry players given that it has limited resources. Third that how shouldthe company be capturing market share and maintain competitive advantage. It is recommended for the company that it should provide education and information to physicians, and patients about the benefits of the capsules that are inexpensive, comfortable, and also helps to alleviate the pain. Furthermore, company should improve its revenues, and make a strategic partner into market that could support the company’s weak wing of resources since it has capabilities.Similarly, it is also recommended for the company that it should emphasize on the proper utilization of technology, and communication whichwould help company to compete in the market, and increase its customer base.

Introduction

Given Imaging is an Israeli medical technology company. It was found in 1998, the name of company Given Imaging is very unique because each letter has different a meaning where “Gi” means gastrointestinal “v” video, and “en” refers to endoscopy. The name of company is based on the product that it has developedto enable gastroenterologists to capture images of small intestine of the patient with the pill having camera.

Analysis of Income Statement Harvard Case Solution & Analysis

The PillCamwas emphasized by the physicians that found the endoscopy uncomfortable, and very expensive as compared to the PillCam that could be swallowed by the patient and specialist could get these pictures transmitted from intestines.

The traditional endoscopy was in danger in the market because the disruptive approach to the real time, and proper approach to the small intestine was possible in a comfortable and aninexpensive way.

The company was an early entrant in the market with PillCam.So, Given Imaging was a new player in the market, and it did not have much resources, and aptitudes. But, given the exposure in the market many companies started working on their own capsules. On the other hand, competitors started entering into the market, and competition for the company started to rise.

It is important to know that many physicians, and patients were not familiarwith these capsules that could travel through the small intestine, and could exit naturally. They had no information about the PillCam, thus physicians and patients hadthe fear of swallowing the capsule. Because, it was a new gadget, and they were not ready to adopt it, so it was also a concern that how the company can get the confidence of those physicians, and patients for using its product.

 

External Environment and Industry

Porter’s Five Forces

Bargaining Power of supplier

Bargaining power of the supplier is low, because the productof the company is new to the market, and there are no other competitors, and it has increasing customer base, and its production would grow with respect tomarket demand. Therefore, the bargaining power of the supplier is low, and supplier cannot achieve the level of monopoly into the market, and it cannot manipulate the services costs, thus supplier cannot influence the prices to rise.

Bargaining power of buyer

The bargaining power of the buyer is low. Since, the PillCam is a new product, and many physicians, patients have no information about the PillCam, and they also do not want to take risk. The PillCam is cheap, and have a comfortable process than the traditional endoscopy. Similarly, given the aversion of the physicians, and patients company could not be interpreted as their monopoly, but they need some education, and information about the product. Therefore, it can be determined that buyers have low power to manipulate the market, emphasize to lower the price.

The Threat of new entrant

There is high threat of new entrant into the market. Because, Given Imaging is a fresh company with an innovative product, and it is the sole supplier of this innovative product in the industry. Therefore, there is high risk of new entrant in the market............

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