Danaher Corporation, 2007–2017 Case Study Solution
Brand equity and customer loyalty
The company considers its customers as the asset of the company, and the major objective of the company is satisfaction of the desires and demands of the customers. If the company is efficient in providing necessities and benefits to its clients then it can achieve a competitive edge, and therefore tends to come up with something exclusive that can take the company on the peak of success. Hence, DBS plays a better role in assisting the operating executives to provide a superior quality, cost benchmark and satisfaction of the customers’ demand, which results in high profit and growth of the company.
Lean Manufacturing
The company has introduced lean manufacturing, which has proved to be a great method for minimizing the time consumption in the manufacturing process of the product. A lean manufacturing approach also helps the management in achieving the control over the manufacturing process of products in the entire acquisitions of the company. Whereas, DBS plays a vibrant role in presenting a wider approach than the lean manufacturing, and has taken the principles of the lean manufacturing approach into transaction processes. Moreover, it also assists the acquisitions in finding the hidden opportunities and utilizing those opportunities for a successful business.
DBS is being expanded by the management of the company so as to emphasize on the innovation and the growth of the company, with the help of the tools and process around new product development. The lean manufacturing is a great approach being followed by the company, and it polishes the lean manufacturing approach, which aids in the successful management of the multi-business organization.(strategy+business, 2016)
Business model of Danaher Corporation
Imperatively, Danaher Corporation has been recognized as a valuable and leading operating organization a long time ago. It is a global technology innovator that is committed to help its customers in improving their quality of life and solving complex or critical challenges all around the world. The family of the all-inclusive brands have significant leadership position in some of the attractive and demanding industries, including industrial, environmental and health care industries.
It is significantly important to note that Danaher has linked its business model to its operating model in an effective manner. As one of the valuable and largest companies, Danaher has a track record of improving the operations of its portfolio company, hence resulting in further growth and an improved performance.
The business model of Danaher Corporation is best known for acquiring other companies as well as applying its DBS (Danaher Business System) for the purpose of increasing the productivity. The company has a competitive edge over its competitors in terms of accomplishing the diversification and synergies, due to the fact that there are few firms that are engaged in the same business. The merger and acquisition (M&A) is central to the strategy of Danaher Corporation, not only this, the company also has a distinctive benchmark for conducting acquisition activities, which acts as an important element to drive the success of the company. In contrast to many companies which play an active role in the merger and acquisition (M&A) segment; the company adopts or follows the top down approach on such companies falling under its merger and acquisition (M&A) radar.
The growth of the company through acquisition strategy has been successful as of yet, due to the fact that the company is able to bring an operational synergy and cost to the acquired company. The spinoff strategy provides an exceptional opportunity to the company to independently build the greater value of shareholders, serving customers and delivering strategic priorities via investing in high impact inorganic and organic growth opportunities.
Shortly, the readiness of the company to acquire in the specific market as well as the ability to fully test the acquired companies’ business model, has an inevitable impact on the time taken to integrate the acquisition under Danaher Business System. (DBS) (Samaha, 2015).
Danaher Corporation Value Chain
The success of the company depends on the acquisition strategy, continuous improvement and customer facing innovation. The suppliers of the company are committed to the continuous improvement on the global scale.
The company is highly engaged in providing a variety of solutions and equipment to the customers. A number of techniques have been utilized by the company for the purpose of addressing the potential disruption as well as other forms of risk associated with the supply chain, which includes the safety stock use, qualification of material supply sources and alternative material.
The company purchases material, equipment and components from the third parties in its process of manufacturing. The items that the company purchases include:
- Material based components.
- Electronic components.
- Other petroleum based products.
In addition to this, some of the businesses buy particular requirements from limited source or sole suppliers for various reasons, such as:
- Regulatory requirement.
- Quality assurance.
- Cost effectiveness.
- Availability and uniqueness of design.
The supply chain of the business would likely be disrupted by the capacity constraint of supplier, decreased raw material availability, bankruptcy, and various external events, such as pandemic health issues, natural disaster, terrorist action, and war, regulatory or legislative changes. Any of these reason would result in delays, production interruptions, and inefficiencies and extended lead time.
In short, the suppliers of the company are customer focused, innovative and committed to the consistent improvement throughout the operations. Through its suppliers, the company assures driving value by eliminating waste, reducing cost and improving the efficiency throughout the process of supply chain.
Classify Other Market Players into Rivals, Closed Rivals and Substitutes
The company has been consistently strengthening its footprint in the market and competitive advantage via consistent application of the DBS (Danaher Business System). It also improves its portfolio in attractive technology and science market, through strategic allocation of capital.
Even though, the company has been operating in a highly competitive and lucrative market arena, the competitive position of the company cannot be determined by segment, due to the fact that the competitors have been offering similar products and serving similar markets. Danaher Corporation has encountered numerous market rivals, which comprise well-established regional competitors and larger companies with substantial marketing, research, sales and financial capabilities.
The company is now challenged by the fierce market competition in a number of served market arena as a result of the entry of large and new companies in the market, increasing the consolidation in specific market and competitors entry in low cost manufacturing locations. The competitors vary by service line and products. It is believed by the management that the company is the market leader in the served markets. The key competitive factors include; price, quality, breadth of product, distribution network, innovation, support, delivery speed, and brand name recognition, and service and software offerings...........
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