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Strategic Management Assignment

XIMB

Strategic Management
Assignment
Industry – Health Care, Medical Equipment
Company– Boston Scientific
Submitted by, Anirudh Kandrika (U113147)

The objective of the report is to study, analyze & understand the business model,
vision, mission, corporate goals of Boston Scientific and prepare the activity map,
conduct an industry environment analysis for the same whilst comparing the same with
other major international / domestic players
in the same industry.
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Strategic Management Assignment

1. Compare and Contrast the business model of Boston Scientific with:
a) An International Organization with a similar Business Model –
Johnson & Johnson
Description
Boston Scientific
of the
Business
Model
Customer
Disease Burden
Value
-Growing incidences
-High mortality
Proposition
-Complex diagnosis

Johnson & Johnson

Disease Burden
-Growing incidences
-High mortality
-Complex diagnosis

Unmet need
-Absence of therapy
-Limitations in efficiency
-Difficulty in use of
equipment
-Device discomfort
-High complication risk

Unmet need
-Absence of therapy
-Limitations in efficiency
-Difficulty in use of
equipment
-Device discomfort
-High complication risk

Clinical Value
-Innovative product
-Substantially effective
-Long term safety
-Improve ease of use

Clinical Value
-Innovative product
-Substantially effective
-Long term safety
-Improve ease of use

Economic value
Economic value
-Price reflects value
-Price reflects value
-Low budget impact
-Low budget impact
-Cost savings
-Cost savings
-Cost effectiveness vs other -Cost effectiveness vs other
options
options
-Hospital resource
-Hospital resource
reductions
reductions
Quality
-International standards
-Consistency in products
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Quality
-International standards
-Consistency in products

Strategic Management Assignment

across geographies
Profit
Formula

across geographies

Revenue Generation:
Revenue Generation:
-Manufacture & Sale of
-Manufacture & Sale of
medical equipment
medical equipment
-Through development &
-Through development &
sale of Drug-eluting
sale of Drug-eluting
slunts.
slunts.
-Income through licensing of -Income through licensing of
patents developed.
patents developed.
-Manufacture & sale of
pharmaceutical products
Cost Structure:
-Manufacture
& sale of
-Fixed costs: Salaries, R&D
packaged consumer
expenses, work space
goods like band aids, skin
rents etc.
care products, etc.
-Variable costs: Inventory
holding costs, raw
Cost Structure:
material procurement
-Fixed costs: Salaries, R&D
costs, transportation
expenses, work space
costs, sales distribution
rents etc.
network associated costs,
-Variable
costs: Inventory
etc.
holding costs, raw
material procurement
Profit margins:
costs, transportation
-Dependant on achieving a
costs, sales distribution
significant market share,
network associated costs,
developing new products
etc.
through innovations and
R&D.
-Market share increase
through expanding to
new geographies /
launching new products
in existing matrix.
-An analysis of the BCG
matrix here would be of
great help in
understanding the profit
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Profit margins:
-Dependant on achieving a
significant market share,
developing new products
through innovations and
R&D.
-Product portfolio highly
diverse and into many
additional industries such

Strategic Management Assignment

centers for Boston
Scientific

as packaged consumer
products has given J&J a
distinct competitive
advantage and deep
pockets.
-Market share increase
through expanding to
new geographies /
launching new products
in existing matrix.
An analysis of the BCG
matrix here would be of
great help in understanding
the profit centers for
Johnson & Johnson.

b) A Domestic Organization with a similar Business Model – Hospital
Equipment Manufacturing Company (HEMC)
Description
Boston Scientific
of the
Business
Model
Customer
Disease Burden
Value
-Growing incidences
-High mortality
Proposition
-Complex diagnosis
Unmet need
-Absence of therapy
-Limitations in efficiency
-Difficulty in use of
equipment
-Device discomfort
-High complication risk
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HEMC

Disease Burden
-Growing incidences
-High mortality
-Complex diagnosis
Unmet need
-Absence of therapy
-Limitations in efficiency
-Difficulty in use of
equipment
-Device discomfort
-High complication risk

Strategic Management Assignment

Clinical Value
-Innovative product
-Substantially effective
-Long term safety
-Improve ease of use

Clinical Value
-Innovative product
-Substantially effective
-Long term safety
-Improve ease of use

Economic value
Economic value
-Price reflects value
-Price reflects value
-Low budget impact
-Local supplier providing a
-Cost savings
price advantage
-Cost effectiveness vs other -Low budget impact
options
-Cost savings
-Hospital resource
-Cost effectiveness vs other
reductions
options
-Hospital resource
reductions
Quality
-International standards
-Consistency in products
across geographies

Profit
Formula

Quality
-International standards
-Consistency in products
across geographies
-Local supplier. Hence better
after sales service and
cheaper spares

Revenue Generation:
Revenue Generation:
-Manufacture & Sale of
-Manufacture & Sale of
medical equipment
medical equipment & lab
-Through development &
equipment.
sale of Drug-eluting
-Income through licensing of
slunts.
patents developed
-Income through licensing of -Note that operations of
patents developed.
HEMC are predominantly
limited to India and a
Cost Structure:
major chunk of the
-Fixed costs: Salaries, R&D
revenue comes from
expenses, work space
India and Indian clients.
rents etc.
-Variable costs: Inventory
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Strategic Management Assignment

holding costs, raw
Cost Structure:
material procurement
-Fixed costs: Salaries, R&D
costs, transportation
expenses, work space
costs, sales distribution
rents etc.
network associated costs, -Variable costs: Inventory
holding costs, raw
etc.
material procurement
costs, transportation
Profit margins:
costs, sales distribution
-Dependant on achieving a
network associated costs,
significant market share,
etc.
developing new products
through innovations and
R&D.
-Market share increase
through expanding to
new geographies /
launching new products
in existing matrix.
-An analysis of the BCG
matrix here would be of
great help in
understanding the profit
centers for Boston
Scientific

Profit margins:
-Dependant on achieving a
significant market share,
developing new products
through innovations and
R&D.

Based on the above analysis and comparison in part 1(a) and 1(b), we can
conclude that all medical equipment manufacturers operate on a similar
business model having a similar kind of revenue generation model, cost
incurring model and profit generation model. In addition, the value propositions
offered are also highly similar.
However, few distinct differences between the global and local manufacturers
is that local suppliers could have a significant advantage in terms of more
economical sourcing of raw materials, easier availability of spares and cheaper
after sales service, easier installation assistance and an overall stronger supply
chain network locally. These differences could be offset by better use of
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Strategic Management Assignment

technology, higher standards of equipment and more consistency in products
by global manufacturers.
Another significant difference between Johnson & Johnson when compared
against Boston Scientific is a distinctly diverse portfolio that Johnson & Joh nson
has. It manufactures and sells products ranging from Consumer Products,
Pharmaceuticals to Medical Devices and Diagnostics. This means that Johnson &
Johnson would have a significant advantage over Boston Scientific in terms of
penetration or brand recall as it is a more house hold brand but at the same time
could also prove as a disadvantage as people know J&J more for packaged consumer
goods than as a medical equipment manufacturer and hence its credibility in this
industry could be questionable to them.
Conclusions:
Hospital VAC use has increased and processes have expanded over time. Business
models are increasingly focused on attaining an optimal balance between cost
reduction and quality improvement. Most models include both clinical and
administrative personnel to conduct clinical evaluation and provide cost analysis
information and data review. However, there are several challenges associated with
current hospital value analysis including physician buy-in and data availability.
Healthcare reform has contributed to the surge in hospital value analysis as several
initiatives are aimed at incentives for hospitals and physicians to improve the quality
and efficiency of care. As a result, there is an evident shift towards increased use of
medical equipment in hospital settings. It is thus essential for medical device
manufacturers to understand the process, identify and quantify their product’s clinical
and economic value proposition, provide evidence for value assessment considering
outcomes that are relevant to hospital settings, and create systems to optimally
communicate with VAC stakeholders.

2. Prepare an Activity System Map for both a Low Cost Organization
(HEMC) as well a Diversified (Johnson & Johnson) Organization
operating in the Industry/ Sector selected by you.
An activity map is a diagnostic tool to identify your organizations competitive
advantage. It connects your organization’s value proposition to the activities of
your organization that enable you to deliver this value proposition better than
any competitors.
An activity map is generally used for the following purposes:
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Strategic Management Assignment



Make incremental decisions about whether a new idea or opportunity fits
the strategy. If the new opportunity does not undermine any other aspect of
the activity



Communicate how every function and policy contributes to the organization
strategy; you can also use it to cascade KPIs down the organization, linking
with your Balanced Score Card



Identify mis-fits. What do you do that undermines any part of your activity
map?



Make decisions about the boundary of the organization. It is a strategic risk
to outsource anything on your activity map since this is the core of your
competitive advantage. Anything not on this map is context and can be
outsourced and managed for cost effectiveness.



To make organization decisions for new ventures or acquisitions. If the
activity maps of the businesses are very different, combing them in the
same organization will create trade-offs, and they are better off separate,
even if this increases the cost base.

Diversified Company (Johnson & Johnson)

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Strategic Management Assignment

Low cost organization (HEMC)

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Strategic Management Assignment

We can hereby observe that while the strategic goals for a diversified company
is more towards customer service and better products, the strategic goals for a
small low cost company like Narang Medical, the strategic goals are to increase
market share through expansion – either by increasing local market share or by
expanding to other geographies whilst keeping a low cost product.
3. Identify the leading Organizations Low Cost Providers (HEML) as well
as the leading Organizations with Diversified Product/ Service
Providers (Johnson & Johnson) for India and for the 5 Continents (Asia,
Europe, Africa, North America and South America). Document the
Vision, Mission, and Objectives of these companies (ex: airline
companies) and identify the key attributes of success for each of
these organizations/ industries (ex: International Carriers). Is it in line
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Strategic Management Assignment

with the various readings shared with you? Evaluate the Mission
statement as per the suggestions given in the website
(http://www.strategicmanagementinsight.com/missionstatements/microsoft-mission-statement.html). Prepare the Strategy
Statements in line with the article on 'Developing the Strategy Vision, Value Gaps, and Analysis' by Robert Kaplan, David Nortan, and
Edward Barrows and identify the Value Proposition and Strategy
Sweet Spots in line with the article on 'Can You Say What Your
Strategy Is' by David Collis and Michael Rukstad
The leading organizations with a diverse portfolio for India are:
1. HEMC
2. Narang Medical Ltd.
The leading organizations globally who compete in this space is:
1. Johnson & Johnson
2. Siemens AG
3. General Electric Co.
Mission statements for the companies:
The mission statement is a description of what an organization does, its
various stake holders and the obligations it holds towards them. It is the
statement that defines the basic reason for the company’s existence. Mission
statements are generally of two kinds:
- Customer oriented
- Product oriented
Let us look into the mission statements of each of these companies and
evaluate them to try and understand how effective they are in including all
their stake holders in their business. Some people argue that constantly
modifying the mission statement and treating it as a live document have a
higher rate of success in conducting their businesses.

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Strategic Management Assignment

Table 1: Evaluation of Boston Scientifics’ Mission statement
Mission Statement: Boston Scientific is dedicated to transforming lives through innovative medical
solutions that improve the health of patients around the world.

Does it include…?

Does it mention values like…?

Customers

Products/
Services

Markets

Citizenship

Teamwork

Yes

No

Yes

No

No

Technology

Concern for
survival

Philosophy

Excellence

Integrity

Yes

No

No

No

No

Self-concept

Concern for
public image

Employees

No

No

No

Result

Fair

Customer or product-oriented?
Customer-oriented

Table 2: Evaluation of Siemens’ Mission statement
Mission Statement: On the basis of our forward-looking technology and solutions we respond to
the most challenging questions of our time in the Industry, Energy and Healthcare sectors. Our wide
range of products and solutions are designed with the environment in mind and engage with the
subject of climate change.

Does it include…?

Does it mention values like…?
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Strategic Management Assignment

Customers

Products/
Services

Markets

Citizenship

Teamwork

No

Yes

No

No

No

Technology

Concern for
survival

Philosophy

Excellence

Integrity

Yes

No

No

No

No

Self-concept

Concern for
public image

Employees

No

Yes

No

Result

Fair

Customer or product-oriented?
Product-oriented

Table 3: Evaluation of General Electric’s Mission statement
GE doesn’t have an official mission statement, but presents it through GE Works Equation. It can be
found in the picture below.

This is how GE explains it:
“We have a relentless drive to invent things that matter: innovations that build, power, move
and help cure the world. We make things that very few in the world can, but that everyone

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Strategic Management Assignment

needs. This is a source of pride. To our employees and customers, it defines GE.”

Does it include…?

Does it mention values like…?

Customers

Products/
Services

Markets

Citizenship

Teamwork

No

No

Yes

No

No

Technology

Concern for
survival

Philosophy

Excellence

Integrity

Yes

Yes

Yes

No

No

Self-concept

Concern for
public image

Employees

Yes

No

Yes

Result

Good

Customer or product-oriented?
Customer-oriented

Table 4: Evaluation of HEMC’s Mission statement
Mission Statement: On the basis of our forward-looking technology and solutions we respond to
the most challenging questions of our time in the Industry, Energy and Healthcare sectors. Our wide
range of products and solutions are designed with the environment in mind and engage with the
subject of climate change.

Does it include…?

Does it mention values like…?

Customers

Products/
Services

Markets

Citizenship

Teamwork

No

Yes

No

No

No

Technology

Concern for
survival

Philosophy

Excellence

Integrity

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Strategic Management Assignment

Yes

No

No

Self-concept

Concern for
public image

Employees

No

Yes

No

No

No

Result

Fair

Customer or product-oriented?
Product-oriented

The evaluation of the mission statements can be observed as follows:
Result – Good: The statement recognizes most of its stake holders like
Customers, employees, public, understands the importance of markets,
technology, and other attributes like Integrity, teamwork and excellence are
given due recognition.
Result – Fair: The statement recognizes few of its stake holders like
Customers, employees, public, understands the importance of few competitive
forces like markets, technology but other attributes like Integrity, teamwork
and excellence may not be given due recognition.
4. Conduct a External as well as Industry Environment Analysis for the
industry in which the company (PESTEL and Porter's 5 Force Analysis)
is operating. Identify the strategy of the company's closest
competitor? Who are the complementors (company's offering
complementary products or services) of the organization?

PESTEL Analysis of Medical Equipment Industry
Political


Economic

Likely change of a stable government

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Decreasing Growth rates due to

Strategic Management Assignment



High level of Bureaucracy



High Corruption level



High rates of Inflation



Inviting Tax policies



Low rates of interest in few industries

recession

encouraging investment


Freedom of press




Highly regulated industry



Strict control of trade



Import restrictions (quality and quantity)

imports expensive



Tariffs



Competition regulation



Government involvement in trade unions



Free availability of credit making finance
relatively easy



Increasing level of consumers’
disposable income thus increasing demand
constantly

Not so strong Copyright, patents /
Intellectual property laws due to which
innovation is stifled.



Increasing inflation leading to increasing
prices in general.

Highly employer friendly Employment
laws in comparison to North America



Medical equipment industry is in the
growth stage of business cycle

and agreements



Stable level of unemployment keeping
Labor costs more or less stable





Decreasing rupee to the dollar making



Highly fluctuating and volatile stock
markets owing to the low level of
confidence in the economy

Strong health and safety laws but weak
implementation

Social


Technological

Increasing level of Health consciousness
in urban & rural societies



Increasing levels of Basic infrastructure
due to increasing allocations in the budgets

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Increasing levels of education &



Rapid rate of technological change



Firms increasing spending on research

awareness


Globalization has bought in an accepting

& development

attitude toward imported goods and services



Customers increasingly want better
product quality and customer service and
readiness to pay more for such products

Setting up of SEZ’s giving Technology
incentives



Highly liberalized legislations regarding
technology post 90’s



Increasing emphasis on safety and


health practices


High precision and increasing levels of
Technology level in medical equipment
industry

Lifestyles of urban people are becoming
increasingly healthy




Customers attitudes toward “green” or
ecological products is still negative as they
are not willing to spend more for green
products but this attitude is increasingly
changing



Stabilized Population growth rate



Predominantly young country and
increasing life expectancy rates



Almost equal sex ratio 933 women for
1000 men



Increasing average disposable income
level



Social classes



Decreasing Family size and emergence
of nuclear families

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Increasing levels of communication
infrastructure adding to technological
advancements thus reducing costs



Internet infrastructure and penetration
very rapid leading to increasing awareness.

Strategic Management Assignment

Environmental (ecological)


Legal

Weak implementation of laws regulating



Absence of strong Anti-trust law



Equality in law protects interests of

environment pollution, Air and water pollution


Poor Waste management and disposal

everyone

systems which create health hazards



Non encouraging attitude toward “green”

Intellectual property laws due to which
innovation is stifled.

or ecological products – changing trends




Non encouraging attitudes toward

Not so strong Copyright, patents /

renewable energy – changing trends

Highly employer friendly Employment
laws in comparison to North America



Strong health and safety laws but weak
implementation

Porter’s 5 forces Model Analysis for Boston Scientific:
Threat of new entry (very weak)

++



Large amount of capital required



High retaliation possible from existing

Supplier power (weak)


+

Few number of suppliers who deal with
these materials

companies, if new entrants would ring
innovative products and ideas to the industry




them are pretty small


Few legal barriers protect existing
companies from new entrants



Some suppliers are large but the most of

Companies generally do not change
suppliers often and stick to a particular supplier
for a particular product

All existing companies have established


brand image and reputation

Suppliers do not pose any threat of forward
integration



Products are mainly differentiated by design

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Strategic Management Assignment

and engineering quality


New entrant could easily access suppliers
and distributors



It is very hard to achieve economies of scale



Governments often protect their home
markets by introducing high import taxes
Buyer power (strong)

-



There are many buyers



Most of the buyers are individuals that buy

Threat of substitutes (weak)



It doesn’t cost much for buyers to switch to
another brand of vehicle or to start using other
type of transportation


Buyers can easily choose alternative car
brand



Buyers are price sensitive and their decision
is often based on how much does a vehicle cost



Buyers do not threaten backward integration

Competitive rivalry (strong)

-



Moderate number of competitors



Increasing importance and growth of the
health care industry has led to increasing

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Since it is the health care industry and is
highly regulated, there are high quality checks
in place thus preventing spurious / low quality
manufacturers

one car, but corporate or governments usually
buy large fleets and can bargain for lower prices


+

Substitutes can rarely offer the same
convenience and hospitals generally do not
switch suppliers so easily owing to a lot of
factors

Strategic Management Assignment

number of device manufacturers over the years


Industry is still small and unorganized



Size of competing firm’s vary but they
usually compete for different consumer
segments



Customers are mostly loyal to their brands
as switching brands involves training and
additional expenses



There is low threat of being acquired by a
competitor

Summary of Porter’s Five Force Model based on the above analysis

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5. Write within 750 words each of the following:
a) Comment on the History, Evolution, Growth Rate, Profitability Rate
& Future of the Industry in which the Organization is operating.
How has it been for Organization as well?
History:
Medical equipment (also known as armamentarium) is designed to aid in
the diagnosis, monitoring or treatment of medical conditions.

A medical device is any health care product that achieves its primary intended
purpose not through chemical action or by being metabolized

Medical devices include electro-medical equipment and related software, furniture,
supplies & consumables, cardiovascular & neurological products, ophthalmological
implants, orthopedic appliances, prosthetics and diagnostic kits, reagents and
equipment.

Growth:
The Indian healthcare industry has progressed at an impressive pace over the past
few years. The private sector has emerged as a vibrant force in the industry,
accounting for almost 74 per cent of the country’s total healthcare expenditure.
The Medical Devices and Equipment industry, valued at US$ 2.5 billion contributes
only 6% of India’s US$ 40 billion healthcare sector. Moreover, it is growing at a
faster annual rate of 15% than 10-12% growth seen in the Healthcare sector in its
entirety. A rise in the number of hospitals and the increased requirement for
healthcare facilities creates a need for sophisticated devices and equipment, which
can provide accurate treatment to individuals. The Medical Electronics segment of
this industry incorporates control, conversion, sensing, processing, storage,
display, and transfer of information on anatomy and physiology by making use of
the Electronics and Communication Technologies. The Medical Equipment industry
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Strategic Management Assignment

is quite wide with > 14,000 different products types, as per the Global Medical
Device Nomenclature (GMDN). The products range from wound closure pads to
stents and IVD machines of medical devices. Further, it can be reasonably said that
Medical Electronics is an area, where Electronics and Information Communication
Technology play a decisive role.
Healthcare sector is expected to record a compound annual growth rate (CAGR) of
15.0 per cent during FY08–17.

The Indian devices market has been growing at an exceptionally healthy
pace of CAGR around 15%

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Trends and Investments
The Indian healthcare providers plan to spend Rs 5,700 crore (US$ 897.64 million)
on IT products and services in 2013, a seven per cent rise over 2012 revenues of
Rs 5,300 crore (US$ 834.65 million), as per a report by Gartner.

The Indian-American doctors’ community plans to organize the "Global Healthcare
Summit" in Ahmedabad, Gujarat, from January 3-5, 2014, to bring affordable world
class healthcare for Indians. Global Healthcare Summit 2014 aims at advancing the
accessibility, affordability and quality of world-class healthcare to the Indian
people. The Summit will also focus on prevention, diagnosis, treatment options and
share ways to truly improve healthcare transcending global boundaries, as per Dr
Jayesh Shah, President, Association of American Physicians of Indian Origin (AAPI).

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Strategic Management Assignment

Road Ahead
The country's healthcare system is developing rapidly and it continues to expand
its coverage, services and spending in both the public as well as private sectors.
This is creating a large market for hospital information systems and other
healthcare-related IT solutions.

The favorable demographic virtues offer an attractive market for healthcare
providers and investors in India. An increase in foreign investment inflows and
private equity (PE) deals in the industry’s various segments have also been noted,
in addition to the increased focus received from the Government.

b) Size of the Industry across the world and the country where the
organization is operating
Overall Market Segments in Health Care:
Of total healthcare revenues in the country hospitals account for 71 per cent.

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Strategic Management Assignment

The Indian healthcare industry, which comprises hospitals, medical infrastructure,
medical devices, clinical trials, outsourcing, telemedicine, health insurance and
medical equipment, is expected to reach US$ 160 billion by 2017.

On the back of continuously rising demand, the hospital services industry is
expected to be worth US$ 81.2 billion by 2015. The Indian hospital services sector
generated revenue of over US$ 45 billion in 2012. This revenue is expected to
increase at a compound annual growth rate (CAGR) of 20 per cent during 20122017, according to a RNCOS report titled, ‘Indian Medical Device Market Outlook to
2017’.

Market Size
The healthcare industry in India is experiencing gradual transition from paper files
to electronic mediums. The Indian healthcare assisted by IT market has been
growing tremendously over the past few years. It is expected to grow at a CAGR of
around 22.7 per cent during the period 2013-2015.
The hospital and diagnostics centre in India received foreign direct investment
(FDI) worth US$ 1,914.28 million, while drugs & pharmaceutical and medical &
surgical appliances industry registered FDI worth US$ 11,318.32 million and US$
653.45 million, respectively during April 2000 to June 2013, according to data
provided by Department of Industrial Policy and Promotion (DIPP).

More so, the other related segments like genetic testing market is expected to
grow at a CAGR of around 9 per cent during 2012-2017 and that of the diagnostic
services market in India at a CAGR of around 26 per cent during 2012-2015. All the
growth is based on the foundation on huge investments, fast expansion into tier II
& III cities, and strong government support to strengthen the healthcare
infrastructure in the country.

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Strategic Management Assignment

The global medical devices market is estimated at 250 Billion USD.

Out of this, the distribution of the pie is as follows:

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Strategic Management Assignment

Sales (in Billion USD)

62.5

Medical Equipment
112.5

Medical disposables
Implants

62.5

The regional distribution among various continents is as follows

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Strategic Management Assignment

Regional Share

6%
18%

North America
44%

Europe
Asia Pacific
Rest of World

32%

c) Key success factors for any organization operating within the
Industry and how is your organization performing on those criteria.
For any industry to survive and thrive in the present competition, it is very
important to understand the drivers of growth. In the medical equipment
industry, the following factors act as major drivers of growth.
 Booming economy
 Increasing healthcare expenditure
 Changing demographic profile
 Increasing incidence of lifestyle diseases
- Ophthalmology
- Cancer
- Cardiovascular diseases
- Hypertension,
diabetes and renal diseases
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Strategic Management Assignment








- Neurological and psychiatric disorders
Increasing number of medical tourists
Proliferation of hospitals
Government programmes and support
Outsourcing / relocation of medical devices manufacturing by western
MNC’s
User friendly and handy devices
Telemedicine

Few major issues and challenges that the medical equipment industry faces
are:
 India’s dependency on imports for supply of medical devices
 The regulatory environment needs to be reliable & consistent
 The prevailing low level of medical insurance
 The low level of healthcare facilities and awareness, especially in the
rural areas
Coming to the performance of Boston Scientific on the above mentioned
criteria, it is to be observed that Boston Scientific has addressed most of the
factors required for success and also the issues & challenges at hand. This
can be better understood by performing a SWOT analysis of Boston
Scientific so that we can appreciate how the company has handled the
various internal & external business environments.

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From the SWOT analysis we can observe that Boston Scientific banks on its core
competency of manufacturing quality medical products has helped it acquire a
huge global market share especially in hospitals that are visited by the urban
middle class and above. It has also managed to grab the pvt. hospital sector
aiming to attract medical tourists.
However, Boston Scientific has to work in improving its share in the local market
through some fruitful JV’s and tapping the experience of local companies.
It would also be advisable to wait sometime in the medical disposable segment
as the sector is highly unorganized now and investing there would not yield any
results immediately.
We understand that Boston Scientific’s India operations are in a question mark
quadrant of the BCG matrix where the growth of the sector is high but market
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30

Strategic Management Assignment

share is low. Hence, it is a great opportunity and needs to be funded from other
profit centers to improve business here.

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31

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