2024-2 Strategic Management
Case Analysis
Presented by
Group 5
Content
Introduction
Discussion Question 1
Discussion Question 2
Discussion Question 3
Discussion Question 4
Conclusion
Introduction
Syntellix
Emergence of Syntellix
Oligopoly of
orthopedic implants market
*orthopedic : 정형외과의;
relating to the branch of medicine dealing with
conditions affecting the bones or muscles
Emergence of Syntellix and
development of
bio-absorbable medical Implants, MAGNEZIX
* Biodegradable 생분해성
Make a disruptive innovation in the oligopoly market.
Make a disruptive innovation
- eliminate the need
for secondary surgery
Introduction
Syntellix
DQ1
Evaluate the nature of Utz Claassen’s involvement in innovation management at Syntellix.
What were the key challenges he faced, and how did he overcome them?
Discussion Question1
Syntellix
Who is Utz Classen?
- founder and chairman of Syntellix
- Use a disruptive innovation strategy to
change the medical implant industry
- Guide Syntellix to become a sustainable
business
Discussion Question1
Syntellix
Key challenges of Utz Classen
Regulatory and
Clinical Trial Barriers
Competing
with large companies
Skepticism Toward New
Technology
The medical implant industry is
Large companies that prefer
Many doctors were skeptical
highly regulated and involves
to be conservative and stable,
about using magnesium-based
a complex approval process.
so their innovative technology
biodegradable implant.
was hard to enter the market
Discussion Question1
Systematic Scaling
Syntellix
Clear and Strong Vision
Global Market Expansion
“Innovation Management”
Technological Innovation and
Continuous Development
Strategic Partnerships
Discussion Question1
Systematic Scaling
Syntellix
Clear and Strong Vision
Global Market Expansion
“Innovation Management”
Technological Innovation and
Continuous Development
Strategic Partnerships
Discussion Question1
Systematic Scaling
Syntellix
Clear and Strong Vision
Global Market Expansion
“Innovation Management”
Technological Innovation and
Continuous Development
Strategic Partnerships
DQ2
What kind of industry environment did Syntellix encounter when it entered the market in 2013?
Syntellix
Discussion Question2
Syntellix and Five forces model
Threat of new entrants
Bargaining power of buyers
Moderate to High
Low
-
hard to gain economies of scale
-
need lots of capital for research and development
-
need a lot of time and capital to pass through the market because of
government regulations
Bargaining power of suppliers
High
-
Medical field/orthopedic industry is an oligopolistic
-
magnesium alloy is used in a lot of other industries
-
high asset specificity -> no substitutes
-
forward integrat ; Possible but unlikely
-a large purchase of a hospital to secure inventory
- But Industry’s products are differentiated
- customer’s high switching costs
- Backward integration ; possible but unlikely
Threat of substitutes
Low
- high asset specificity so it is tailored to the specific customer
Syntellix
Discussion Question2
Syntellix and Five forces model
Bargaining power of buyers
Threat of new entrants
Moderate to High
Low
-a large purchase of a hospital to secure inventory
-
hard to gain economies of scale
-
need lots of capital for research and development
-
need a lot of time and capital to pass through the market because of
government regulations
Bargaining power of suppliers
High
Competitive rivalry
- But Industry’s products are differentiated
- customer’s high switching costs
- Backward integration ; possible but unlikely
Low
Medical / orthopedic industry is oligopolistic
market
-
Medical field/orthopedic industry is an oligopolistic
-
magnesium alloy is used in a lot of other industries
-
high asset specificity -> no substitutes
-
forward integrat ; Possible but unlikely
Threat of substitutes
Low
- high asset specificity so it is tailored to the specific customer
Syntellix
Discussion Question2
Syntellix and Five forces model
Syntellix have appeared to have entered the Medical devices market which is an oligopoly.
Few(large) firms
Some pricing power
Differentiated product
High entry barriers
DQ3
What is “disruptive innovation” and what are the key principles behind it?
Is MAGNEZIX a disruptive technology?
Discussion Question3
What is “disruptive innovation”?
- Disruptive innovation refers to a product or process that utilizes new technologies
within existing market to better meet customer needs.
Syntellix
Syntellix
Discussion Question3
Is MAGNEZIX® a disruptive technology?
Syntellix’s MAGNEZIX® represent a disruptive innovation within the medical and orthopedic market.
magnesium-alloy implants
-> new technology
No removal surgeries
-> to better meet customer needs
Syntellix
Discussion Question3
Is MAGNEZIX® a disruptive technology?
-> MAGNEZIX eliminates the
trade-offs of traditional bone
screws and offers better
performance and lower risk for
patients.
* Osteoconductivity : 골전도성 ; The property that
allows bone tissue to grow along a specific
material and aid in the formation of new bone.
DQ4
What are the strategies available to competitors to meet
the disruptive challenge presented by Syntellix? How should Claassen respond?
Syntellix
Discussion Question4
What is competitor’s strategy?
Motivation
Adopt / Ambidexterity strategy
Ability
*Ambidexterity : ability to use both the right
and the left hand with equal ease.
Adopt / Ambidexterity strategy
left-handed behavior
exploration activity of new capabilities
Right-handed behavior
exploitation of existing capabilities
Syntellix
Discussion Question4
What is competitor’s strategy?
Exploration
Exploitation
Invest in Complementary Research & Development and Enhance Customer Relationships
Acquire or Partner
with Emerging Innovators
Adopt an Agile Business Model and Expand into
complementary Healthcare Technology Markets
Focus on Product Differentiation
by huge resources
Syntellix
Discussion Question4
How should Claassen respond?
Incremental innovation
Building stronger relationships with
healthcare providers, Customer
Acquire or Partner with
innovator
Syntellix
Conclusion
Summarize
DQ1
Evaluate the nature of Utz Claassen’s
involvement in innovation management at
Syntellix.
What were the key challenges he faced, and
how did he overcome them?
DQ3
What is “disruptive innovation” and what
are the key principles behind it?
Is MAGNEZIX a disruptive technology?
DQ2
What kind of industry environment did
Syntellix encounter when it entered the
market in 2013?
DQ4
What are the strategies available to
competitors to meet
the disruptive challenge presented by
Syntellix? How should Claassen respond?
Conclusion
Syntellix
Reference
https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfpcd/classification.cfm
https://www.fda.gov/industry/fda-user-fee-programs/medical-device-user-fee-amendments-mdufa
https://www.rimsys.io/blog/de-novo-classification-process-a-beginners-guide
https://publichealth.jhu.edu/2018/cost-of-clinical-trials-for-new-drug-FDA-approval-are-fraction-of-total-tab
https://www.eurodev.com/blog/cost-of-obtaining-the-european-medical-deviceregulations#:~:text=Once%20the%20notified%20body%20approves,class%20of%20your%20medical%20device.
https://europa.eu/youreurope/business/product-requirements/compliance/technical-documentationconformity/index_en.htm
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