Medisys Case Analysis
MediSys – Industry Environment in 2009
The medical device manufacturing industry in 2009 was already competitive with future expectations of increased competition, when two deep pocketed, highly reputable public companies announced plans to launch additional product segments. Product development within the industry was both expensive and complicated. Firms were forced to meet strict quality and regulatory standards, sometimes including lengthy clinical trials, before final product distribution. In an industry with high up-front costs, public firms had an advantage over private firms such as MediSys to pay the large initial research and development costs that each unique product required. Opportunities did exist, however, for smaller niche firms to generate significant revenues coupled with high profit margins. For example, MediSys was able to generate $228,571 in average revenue per employee versus the industry average of $190,000 per employee1. The potential to capitalize on these higher profit margins was enticing to competitors and heightened the rivalry amongst the participants within the industry. MediSys’ strategy was to “sharpen strategic focus, while preserving the innovative culture and restimulating rapid growth.” (Donnellon, Margolis 2) A key component of …show more content…
As aforementioned, Valerie lacked trust for her colleagues – a sentiment that was shared by many at MediSys. An email exchange between O’Brien and Jack Fogel, IntensCare’s project leader, epitomizes the presence of politics as they discuss having a private meeting to avoid having to deal with Merz’s “predictable drama.” Merz acknowledges her disposition, but fails to cultivate power neither by building coalitions nor by establishing direct appeal, of which could have enabled her to be an effective
The medical device manufacturing industry in 2009 was already competitive with future expectations of increased competition, when two deep pocketed, highly reputable public companies announced plans to launch additional product segments. Product development within the industry was both expensive and complicated. Firms were forced to meet strict quality and regulatory standards, sometimes including lengthy clinical trials, before final product distribution. In an industry with high up-front costs, public firms had an advantage over private firms such as MediSys to pay the large initial research and development costs that each unique product required. Opportunities did exist, however, for smaller niche firms to generate significant revenues coupled with high profit margins. For example, MediSys was able to generate $228,571 in average revenue per employee versus the industry average of $190,000 per employee1. The potential to capitalize on these higher profit margins was enticing to competitors and heightened the rivalry amongst the participants within the industry. MediSys’ strategy was to “sharpen strategic focus, while preserving the innovative culture and restimulating rapid growth.” (Donnellon, Margolis 2) A key component of …show more content…
As aforementioned, Valerie lacked trust for her colleagues – a sentiment that was shared by many at MediSys. An email exchange between O’Brien and Jack Fogel, IntensCare’s project leader, epitomizes the presence of politics as they discuss having a private meeting to avoid having to deal with Merz’s “predictable drama.” Merz acknowledges her disposition, but fails to cultivate power neither by building coalitions nor by establishing direct appeal, of which could have enabled her to be an effective