Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
1. Analysis of the current situation of Creo Company Overview
Creo Medical operates in the highly competitive medical devices industry. Here the company primarily utilized electrosurgical products that are provide a distinct competitive advantage for the company. Here, the company leverages electrosurgical products to help save time and costs while also improving patient outcomes. Here, the company has patented its CROMA Advanced Energy Platform. This platform is used to deliver radiofrequency energy through a single access point with the body. This innovation allows medical professionals to delivery a much more precise surgical option for patients. This energy allows patients to cut, coagulate and ablate for a range of electrosurgical devices more precisely. This is unique within the industry as the technology is patented and is proprietary. In addition, the team is comprised heavily of innovative individuals who can properly leverage future medical advances to further innovate the overall product portfolio.
The company is currently undergoing rapid growth within its industry. This growth is due in part to numerous tailwinds which are impacting the industry overall. For one, countries continue to spend a larger portion of their overall GDP on medical and healthcare costs. In the United States for example, nearly 18% of the countrys GDP is spent on healthcare expenditures. These expenditures are expected to rise to 20% by the year 2030. The higher expenditures themselves are a result of an aging population worldwide and higher input costs. Again, within the United States, inflation has increased by nearly 7%. This rise in costs will inevitably be transferred to consumers in through higher product costs. In these instances, the Creo company can benefit by transferring all these increased costs to consumers through its product offerings.
The company also has a very scalable business model which can be deployed through international markets. Here, many developed markets including Europe, Japan, Australia, and Korea can each benefit from the Creo company product portfolio. Not only does each region have an aging population, but each region is heavily engaged within the healthcare sector to improve overall healthcare outcomes. This provides a large and growth target market for each product with the Creo company portfolio. As the industry for the companies electrosurgical products is young, there is a very large growth trajectory for the companys products.
1.1 The company's current international market position
The current international market position of the company is relatively small. In 2020, the company did acquire an international competitor to boost its overall product offerings within the Asian market. However, as a very young company founded in 2003, the firm has a very small market share position worldwide. The industry overall however is very fragmented with no competitor commanding a disproportionate market share as compared to others.
1.2 Analysis of the company's internal environment (SWOT)
Strengths
Highly innovative culture
Highly motivated and well-trained workforce
Large industry potential
Products that are sticky with few substitutes in the marketplace
Entrepreneurial and experienced leadership team
Weaknesses
Small company with less access to capital in the marketplace
Unproven product portfolio for...…such as Europe and the United States are much more accommodative in their global expansion scope and allow capital to freely flow across borders.
1.5 Analysis of target customers
The target customers for the products are healthcare organizations and professions who require precision tools and devices. This target, as noted above, is very large and applies to many medical organizations around the world. These organizations rely heavily on precision parts to improve healthcare outcomes for patients. In addition, governments are looking to lower healthcare costs overall. Both circumstances bode well for the company and its products. In addition, the target market should ideally have a very strong financial position, with an ability to purchase innovative products on a continual basis. Finally, the target customers must have a wiliness to adopt new technologies and integrate them into their overall healthcare systems and processes.
1.6 Product Situation Analysis
As it relates to the product situational analysis, the company does not currently have a diversified suite of products. It relies heavily on a few select products that are protected by patents. However, these patents could eventually expire, thereby creating an opportunity for competitors to enter the market. In addition, from a company perspective, its competitive advantage is heavily based on these patents and its ability to continually innovate it product portfolio. As it relates to its ability to distribute its products, the company will need to look to raise both debt and equity capital to quickly expand overseas where competition may be limited. In addition, with a strong balance sheet…
References
1. Cavusgil, S. T., & Knight, G. (2015). The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), 3–16. http://www.jstor.org/stable/43653740
2. Logsdon, J. M., & Wood, D. J. (2002). Business Citizenship: From Domestic to Global Level of Analysis. Business Ethics Quarterly, 12(2), 155–187. https://doi.org/10.2307/3857809
3. Miller, K. D. (1992). A Framework for Integrated Risk Management in International Business. Journal of International Business Studies, 23(2), 311–331. http://www.jstor.org/stable/154903
4. Roth, K., Schweiger, D. M., & Morrison, A. J. (1991). Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms. Journal of International Business Studies, 22(3), 369–402. http://www.jstor.org/stable/154914
5. Yip, G. S., Johansson, J. K., & Roos, J. (1997). Effects of Nationality on Global Strategy. MIR: Management International Review, 37(4), 365–385. http://www.jstor.org/stable/40228413
These can create significant management problems due to the impact of different cultures, taxation and pricing, the complexity of choosing the optimal structure for international business, high political risks and many other issues. The specifics of financial planning is determined by the following problems, including volatility in exchange rates, particularly the national taxation, revaluation of currencies, possible difficulties with the export of funds from abroad, problems with in-house transfer pricing,
International Business Environment Outline and critically discuss the criteria by which they judge whether or not a country is stable. International businesses faces a number of risks when they decide to operate overseas. Their ability to make sound investment decisions and to address those risks is directly related to the stability of the country in question. Firms therefore need to develop mechanisms for measuring stability before making the decision to enter a
International Business of Starbucks Starbucks Corporation established in 1971 has its headquarters based in Seattle, Washington. The company is the leading and largest coffeehouse company, with a wide coverage of the market across the globe (Simon, 2009). It is a global coffee company and chain of coffeehouse stores, operating in over 50 countries all over the world. At its founding, it was a mainstream coffee bean roaster and retailer. The company
The localization strategy into Vietnam is also characterized by the fact that it ensures higher levels of business diversification for the company, which in fact serves the number one rule of investments -- portfolio diversification. This in essence means that, through the penetration of the Vietnamese market, the company would increase its sources of revenues and it would decrease its dependency on the more traditional manufacturing plants. Finally, the localization strategy
International Business The Effect of National Culture on the Choice of Entry Mode Foreign direct investment has increased dramatically over the last couple of decades and this trend has been studied. However, it is argued that the entry model form many of these investments has not been studied with the same rigor. It is commonly thought the composition of national cultures on Hofstede's scale and the distance between the two cultures influences
International Business South Korea International Business South Korea: Introduction and Business Potential South Korea is the 12th largest economy in the world. It has made tremendous growth in all manufacturing, industrial, and services sectors to become economically and technologically strong. Due to rapid economic growth and positive governmental behavior, South Korea has become an attractive target country for foreign corporations for their international business expansion strategies (Central Intelligence Agency, 2013). However, these foreign