Medtronic’s website claims that it is “the world’s largest
medical technology company, offering an unprecedented breadth and depth of
innovative therapies to fulfill our Mission of alleviating pain, restoring
health, and extending life.” In 2013 alone, more than 10 million people received
medical therapies. Medtronic’s products care for “cardiac and vascular
diseases, diabetes, and neurological and musculoskeletal conditions.” Medtronic
is in the right business, as Forbes has claimed that health technology
companies are one of the fastest growing fields. With increased technology, an
aging Baby Boomer’s population, and more of a concern about remaining healthy
longer, Medtronic’s products are highly sought after.
Medtronic’s competitive advantage is that it is one of the
few companies in the world that is so diversified in the business of health technology.
Its divisions create products and treatments for a wide array of ailments. In
addition to their traditional projects, Medtronic has announced new research
trials for devices helping with Parkinson’s disease, patients with heart
failure and a device for those with vision loss. They are in the business of
improving quality of life, something everyone experiencing pain is in the
market for. For most who can afford it, the economic benefit of reduced pain or
health issues, the economic value far outweighs the cost. Because the firm is health
technology based and competition on its scale is limited, the competitive
advantage is sustained.
As far as firm performance, the data speaks Medtronic’s
praise. Not only is Medtronic 173 on the 2014 Fortune 500 list, but it is doing
well in the NYSE, averaging between $52.00-$64.00 a share. Recently, its value
neared its 52 week high. In the midst of several acquisitions and mergers, as
well as its decision to seek a tax shelter in Ireland, Medtronic has made the business
news frequently, and its increase in stock price shows an increased value in
light of these decisions. The tax shelter example is clear way that Medtronic
has cut down on economic costs.
Sources:
http://www.medtronic.com/about-us/company-profile/medical-technology.htm?loc=MDTHomeRefresh_B_InPage_SubNav_Company_Line2_3
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