Synthes Analysis
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 fixation. Over time, companies were formed to help the AO vision, with Synthes forming to serve and distribute to North America.
Synthes management asked a Harvard Business Team review board to evaluate the potential for moving forward with bioresorbable internal fixation devices. The purpose of this case was to see how feasible and beneficial it would be for Synthes to enter the bioresorbables market.
B. Extent of Demand
In 2000, internal fixation device sales were near 541.5 million dollars, with an additional 5% annual growth. In cases of trauma where there was damage that required aligning bones, most often internal fixation devises were needed. Some of the parts included in this were plates, rods and screws.
The use of the stainless steel or titanium products was vital to surgeons. They were also had a feasible price. The need from bioresorbables came from the implants needing to be removed. The need for removal is based on varying factors. Pain the patient deals with, visibility, and the fear of metal in the body. Growth could also be hindered in children due to leaving it in. Another concern with leaving them in is it could interfere with X-rays and MRI’s.
C. Nature of Competition
Synthes had
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 fixation. Over time, companies were formed to help the AO vision, with Synthes forming to serve and distribute to North America.
Synthes management asked a Harvard Business Team review board to evaluate the potential for moving forward with bioresorbable internal fixation devices. The purpose of this case was to see how feasible and beneficial it would be for Synthes to enter the bioresorbables market.
B. Extent of Demand
In 2000, internal fixation device sales were near 541.5 million dollars, with an additional 5% annual growth. In cases of trauma where there was damage that required aligning bones, most often internal fixation devises were needed. Some of the parts included in this were plates, rods and screws.
The use of the stainless steel or titanium products was vital to surgeons. They were also had a feasible price. The need from bioresorbables came from the implants needing to be removed. The need for removal is based on varying factors. Pain the patient deals with, visibility, and the fear of metal in the body. Growth could also be hindered in children due to leaving it in. Another concern with leaving them in is it could interfere with X-rays and MRI’s.
C. Nature of Competition
Synthes had