Medtronic is a leading global medical device producer. Medtronic currently maintains a 35% global market share with revenues of over 16 billion. Currently they are faced with slowing markets in the United States, Canada, and Western Europe. While the developing countries are seeing double digit market growth. This has led to a shift in focus by the new CEO Omar Ishrak, he has turned the company into a global centric organization. Rather than the US centric it had become. Ishrak did this by changing the corporate structure and moving meetings overseas allowing business unit heads to see overseas operations.
The company still has many years of slow growth ahead of it as the emerging markets pick up the slack of the developed countries. Utilizing …show more content…
The products that Medtronic offered were able to be purchased in the developing countries, but they were not. Medtronic had mostly just been importing what was needed without trying to discern what the customers really wanted. This was exhibited in China where they used to dominate the market in vascular offerings, but lost most of their share to local Chinese competitors. Ishrak discovered that instead of trying to change the product by offering cheap alternatives he realized he needed to market them differently. The biggest barrier to the products selling was either a lack of cash or not knowing about the medical solutions or disease. He decided that by getting the Medtronic brand name out there and building the customer awareness he could create the opportunities for his …show more content…
Those areas were India and Europe. The problem facing India was a demand for the product but an inability to afford it all in one lump sum. To counter this Medtronic decided to guarantee bank loans for the products it offered, so this allowed people to make affordable payments and greatly increased sales. They also discovered that many people with heart disease were going undiagnosed, so Medtronic implemented mobile health screenings in India to help diagnose more people. In Europe the PAA tool discovered that many of the hospitals wanted to have Medtronic products and the facilities to operate them, however they did not have the capital to initially implement the labs. Medtronic decided to put the capital up and build the labs on site using their own products. This allowed the hospitals to offer services to patients and they were able to use the Medtronic facility and products by just paying a fee per use. Rather than having to do the initial outlay of
The company still has many years of slow growth ahead of it as the emerging markets pick up the slack of the developed countries. Utilizing …show more content…
The products that Medtronic offered were able to be purchased in the developing countries, but they were not. Medtronic had mostly just been importing what was needed without trying to discern what the customers really wanted. This was exhibited in China where they used to dominate the market in vascular offerings, but lost most of their share to local Chinese competitors. Ishrak discovered that instead of trying to change the product by offering cheap alternatives he realized he needed to market them differently. The biggest barrier to the products selling was either a lack of cash or not knowing about the medical solutions or disease. He decided that by getting the Medtronic brand name out there and building the customer awareness he could create the opportunities for his …show more content…
Those areas were India and Europe. The problem facing India was a demand for the product but an inability to afford it all in one lump sum. To counter this Medtronic decided to guarantee bank loans for the products it offered, so this allowed people to make affordable payments and greatly increased sales. They also discovered that many people with heart disease were going undiagnosed, so Medtronic implemented mobile health screenings in India to help diagnose more people. In Europe the PAA tool discovered that many of the hospitals wanted to have Medtronic products and the facilities to operate them, however they did not have the capital to initially implement the labs. Medtronic decided to put the capital up and build the labs on site using their own products. This allowed the hospitals to offer services to patients and they were able to use the Medtronic facility and products by just paying a fee per use. Rather than having to do the initial outlay of