CASE ANALYSIS
Synthes

1. Situation Analysis:

A. Nature of Demand

The products in discussion are ‘bioresorbable’ internal fixation devices. These devices are surgically placed to stabilize broken bones, aiding in allowing the body to heal itself.

Internal fixation devices in the past had been made of stainless steel or titanium, but with problems resulting from those permanent devices, an innovative approach is being considered. Bioresorbable implants are a possible replacement to the original implants that would eliminate the need for removal, which has shown to be a problem for traditional implants.

The Association for the Study of Internal Fixation (AO) formed in 1958 to improve and standardize the state of internal …show more content…

However, Johnson and Johnson has already had its Orthosorb pins on the market for some time. Those lightweight supplies are in more of the rapid growth stage, as they put themselves on the line early, and have seen 2.6 million dollars in revenue as a result. However, strong, weight bearing polymer technology is still in the works. Research and development are a primary cost for this stage. As third generation polymers successfully prove themselves to the surgical market, it is likely that this new technology will move to the Rapid growth and Competitive turbulence cycles. Technology so quickly advances, so as product improvement increases, so too will the steps in the product life cycle.

F. Cost Structure of the Industry

Synthes was formed in 1974 from the strong desire of AO to develop advanced techniques for internal fixation.

Synthes already has the facilities to do the work. They also have the engineers and others needed to work on the products

However, for this to take place, 20 million dollars and a team of 20 to 30 professionals would be needed to make this happen.

Once the initial investment is made in the bioresorbable research and development, the products will be in a variable