Medtronic PLC (MDT) Harvard Case Solution & Analysis

Medtronic PLC (MDT) Case Solution

Introduction:

Medtronic plc was established in Dublin, Ireland.It is a global leader in medical technology that helps in removing pain, restoring health and increasing life expectancy of people by the use of their technology all over the world. The use of Indian medical devices has expanded to $ 3 billion in 2013 and expected to double in coming years.

Medtronic is operating in 160 countries with more than 80,000 personnel globally and is generating $ 27.8 billion in revenues annually. Medtronic started its operations in 1979 and it headquarters are in Mumbai at Solitaire Corporate Park and the company offers its services in other various cities of India as well.

Medtronic plc falls in major categories, which include: (1) cordial and vascular group (CVG): This covers the heart rhythm,heart failure and vascular business. (2) Restorative Therapy Group (RTG): It covers Spine and surgical technologies and neuron model business. (3) The Diabetes Group: It provides insulin pump therapy and system for monitoring glucose in the body. (4) Covidien: It is recently added in Medtronic that shows the offering of a broad portfolio of leading technologies imported either from other countries or manufactured locally such as: surgical and medical technologies and products, respiratory and monitor solutions as well.

Medtronic is one of the world’s leading technology companies in medical sciences that provides solutions related to chronic diseases. Medtronic is currently leading spinal implant market. Along with this, there is an increase in completion for implanting. In this niche market, the competition is increasing with local manufacturing of implants, Chinese manufacturing companies, and other multinational companies.

The challenge faced by Medtronic plc is that some surgeons demand a high amount for spinal implantation but on the other hand, some patients are not able to pay for the implantation. Therefore, as a corporate hospital, they had to pay from their pockets for successful surgeries. Spine division includes Capstone, CD Horizon for Legacy, Antares, Sextant, Atlantis, and Metr-X.

The local manufacturing in India and manufacturing from China are improving theirquality, and other competitors or multinationals are trying to gain the share in the market as well, primarily on price in order to get a competitive advantage.

Medtronic is following various marketing strategies for capturing the market.

  • By understanding the trends and dynamics in the market, its segmentation, and challenges and try to avail the better opportunities
  • Adding more value to the healthcare through additional services and products.
  • Partner with China manufacturing technology for efficient growth and market entry.

The healthcare services providers play a major role in medical device industry and also the corporate style of hospitalization has been allocated as India's Tier I and Tier II cities.Along with this, individual hospitals develop health care centers by hiring skilled physicians who offer valuable services and provide cost benefits to hospital’s patients.

The objective of the case is to identify the needs and expectation for growing the Indian market for spinal implants after considering the issues such as to create the market and volume for referral chain, fixing regulatory system etc. It would also help for deeper understanding of Medtronic market, proper segmentation to which it could be sold and proper position of various products portfolios.

Statement of Objectives of the Study:

1.      Understanding of Medtronic's market--regarding patients and procedures:

Medtronic’s major focus is to work for the human welfare through the use of innovative technologies, biomedical engineering, research, design, and effective use of other devices that would help provide valuable services to patients like restoring health, remove the pain and increase life expectancy. For this purpose, they need to gather employees or expert professionals who provide value addition services in these areas.

All in all; it is very important for Medtronic to make sure the reliability and quality of the products offering that will make the profit on operations of the company; sustain the growth opportunities and meet daily objectives,which will help to increase the shareholder’s wealth...................

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