In the medical devices industry, many firms have found a comfortable foothold within their respective markets. Boston Scientific, however, is not one of said firms. Throughout their lifespan Boston Scientific has been constantly growing and expanding its product portfolio through a variety of ways. They have found their success in the form of new products; they gain said assets through acquisitions as well as organic R&D. However, within their industry, the innovation of a new product is not without constraint. Patents, federal certification, and partnership contracts all act as inhibiting factors upon Boston Scientific, and it is how they interact with these restrictions that will determine their state in the future. Although innovation lies
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Minimizing failure is important to all companies and supply chains, but Boston Scientific’s case, it is even more important because any failure can lead to loss of life. Given the severity of the consequences of failure, Boston Scientific has stringent, multi-step processes for supplier assessments. Their ability to require firms to meet precise and strict expectations is a critical resource because it demonstrates their buyer power. This buyer power ensures another vital resource: having the suppliers that provide the highest quality. This warrant of quality gives Boston Scientific a monetary advantage in many steps of the supply chain. For example, Boston Scientific saves money because they eliminate legal liabilities and also minimize recalls of faulty products. While making reliable and consistent products is an essential aspect of Boston Scientific, innovation is its greatest capability. Innovation is the main business practice in the Medical Devices industry, as it is by far the most profitable way of differentiating between companies. Boston Scientific has been striving to get ahead of the competition with its focus on creating non-invasive devices to ensure the wellbeing of patients. Their innovation is also leading to more permanent solutions to medical problems inside the body. For instance, to improve …show more content…
The market was experiencing consistent annual growth rates of nearly 15% (5). However, with projected growth to slow to only 5% through the year 2020, competition will increase. Boston Scientific competes in an oligopolistic industry. With market growth rate slowing, Boston Scientific must avoid plateauing on innovation or else their profit and operation growth will begin to erode. Ongoing product innovation keeps operational growth and sales margins high. One source of innovation for Boston Scientific is in developing their own new products through research and development. The downside to this strategy is that the process can take years plus regulatory clearance time. To decrease that amount of time, Boston Scientific can acquire smaller companies and gain access to their technologies and manufacturing processes. Acquisitions benefit Boston Scientific in three main way. Namely, these benefits are speed to market, innovation, and access to protected technological intelligence, patents. Slowing market growth is not Boston Scientifics only
Minimizing failure is important to all companies and supply chains, but Boston Scientific’s case, it is even more important because any failure can lead to loss of life. Given the severity of the consequences of failure, Boston Scientific has stringent, multi-step processes for supplier assessments. Their ability to require firms to meet precise and strict expectations is a critical resource because it demonstrates their buyer power. This buyer power ensures another vital resource: having the suppliers that provide the highest quality. This warrant of quality gives Boston Scientific a monetary advantage in many steps of the supply chain. For example, Boston Scientific saves money because they eliminate legal liabilities and also minimize recalls of faulty products. While making reliable and consistent products is an essential aspect of Boston Scientific, innovation is its greatest capability. Innovation is the main business practice in the Medical Devices industry, as it is by far the most profitable way of differentiating between companies. Boston Scientific has been striving to get ahead of the competition with its focus on creating non-invasive devices to ensure the wellbeing of patients. Their innovation is also leading to more permanent solutions to medical problems inside the body. For instance, to improve …show more content…
The market was experiencing consistent annual growth rates of nearly 15% (5). However, with projected growth to slow to only 5% through the year 2020, competition will increase. Boston Scientific competes in an oligopolistic industry. With market growth rate slowing, Boston Scientific must avoid plateauing on innovation or else their profit and operation growth will begin to erode. Ongoing product innovation keeps operational growth and sales margins high. One source of innovation for Boston Scientific is in developing their own new products through research and development. The downside to this strategy is that the process can take years plus regulatory clearance time. To decrease that amount of time, Boston Scientific can acquire smaller companies and gain access to their technologies and manufacturing processes. Acquisitions benefit Boston Scientific in three main way. Namely, these benefits are speed to market, innovation, and access to protected technological intelligence, patents. Slowing market growth is not Boston Scientifics only