Boston Scientific: Cost-Based Leadership Strategies

Another recommendation for Boston Scientific is to pursue a differentiation strategy instead of a cost-based leadership strategy. The oligopolistic nature of the industry and opportunities for innovation create an ideal situation for differentiation. This strategy is also dependent upon Boston Scientific acquiring and maintaining a plethora of patents. By using these patents, Boston Scientific would be able to create a distinct, innovative product that consumers would be willing to pay a higher amount for. Consumers would be less price-sensitive if Boston Scientific’s products were unrivaled and unique. Additionally, creating a technologically superior device could lead to a sustainable competitive advantage for Boston Scientific. Due to the

possibility of hackers gaining access to thousands of different medical devices, Boston Scientific and its competitors have the opportunity to be on the forefront of technological security within the industry. If Boston Scientific were able to create or acquire unhackable technology and then protect it with a patent, they will be able to create a sustainable competitive advantage. However, the risks associated with this strategy are something that need to be considered. One concern is that Boston Scientific is not regarded as the “market leader,” as compared to Medtronic. It could take a considerable amount of time to build a brand image that would justify charging higher prices than their competition. Another risk is losing buyers because of higher prices. Even though these are possibilities, Boston Scientific would be able to able to overcome this by producing state of the art, proprietary technology.