Medtronic Case Study "We've Got Rhythm" Case Study
Abstract:
This paper will provide an insight about the Business strategies used by Medtronic for
development & technological innovation process for sustainable & significant advantage for
the organization. Medtronic Corporation is a medical equipment manufacturer that invented
the cardiac pacemaker. Similarly, the pacemaker device's purpose was to restore the heart's
natural rhythm. Because many cardiac disorders create irregular heartbeats that can only be
corrected with medicine, and it was unclear how long it would take to go back to normal.
Meanwhile, the drugs were not being administered in a consistent manner. Simultaneously,
the business had pioneered the pacemaker sector and established itself as a market leader.
As they did not have any competition in the market, they have enjoyed the majority of shares
of the market. On the other hand, it makes a lot of money from all its businesses.
Furthermore, due to rising demand for the product, fast technological progress, and
stringent regulatory expectations to improve product quality, the firm saw a significant drop
in its market share, which fell by half. Additionally, several internal factors harmed
Medtronic's previously outstanding performance. These internal factors were connected to
external causes and occurred after external difficulties began to obstruct Medtronic's
progress. To begin with, the corporation struggled to promote fresh concepts, and most of
its new investments failed to pay off. It might be said that the corporation lost its integrity
and was severely impacted by global technical advancements since Medtronic's employees
began looking for new and better jobs and leaving whenever the chance arose.
Business Strategy & Improvement by Medtronic:
Mike Stevens, Medtronic's President of Product Development, recognized the challenge the
company was experiencing. He concluded that, while Medtronic's values were still solid and
robust, the product development process needed to be improved. He made a number of
changes and enhancements, many of which contained crucial features that strengthened the
management-employee relationship. The improvement in the processes of the company
incorporated the following. According to Stevens, it was crucial to work with speed in order
to meet deadlines and ensure that the product reached the market in the allotted time. This
will automatically ensure that less time is lost and used more productively. In order to be
more effective, Stevens also stressed the significance of completely allocated unit product
expenses. The goal was to help employees understand how to increase market share by
considering product costs rather than simply functional expenses. Third, the more Medtronic
came up with innovative ideas and rapid means to put them into action effectively and
quickly, the larger its market share would be. As a result, innovation was a critical component
of the product development strategy. Finally, Medtronic's innovation and speed can only be
effective if its clients, namely surgeons and doctors, are happy with the quality of its
products. As a result, Stevens claimed that preserving product quality, as well as speeding
up the process, meeting deadlines, and bringing in new ideas, was critical. Steven went on to
say that the entire process was connected and fast, but that poor quality was an indication
of failure. Similarly, the corporation could not have high quality but poor speed because,
given the quick pace of technology and the fierce rivalry in the market, Medtronic needed to
stay ahead of the pack.
References:
Harvard Business School Medtronic Case Study "We've Got Rhythm" Case Study