Case Study Of Meditech

Meditech is an organization that produces endoscopic surgical instruments. The company manufactures and market low cost endoscopy surgical equipment to hospitals and independent surgeons. New products were critical to Meditech’s strategy of product development, but these product needed to be introduced flawlessly in order to protect Meditech’s reputation and sales of their other products. Three years after Meditech spun off from its parent company, the Largo Healtcare Company. Meditech captured a majority of their market by competing aggressively, developing new, innovative instruments and selling them through a first-class selling force, causing a success in a short period of time. In the past, the organization was experiencing a good customer service, however despite the success, customer dissatisfaction has been growing. Due to the fact that the delivery of surgical equipment on time is very important, this has become a big problem for the organization. Some of Meditech’s customers have been waiting for more than six weeks for products to be delivered, this is not acceptable so Meditech has to come up with a solution.

Endoscopic surgical instruments are surgical procedures described as minimally invasive. This, compared to open surgery, requires only tiny incisions to perform an operation. Consequently, this kind of surgery provides benefits for the patient, both physically and financially. The surgery reduces a patient’s recovery time, because there has only been a small incision, furthermore, it reduces surgical expenses overall. Despite the benefits of this type of surgery, (which market has created in the early 80’s) the technology has only been popular since the last ten years. Only three years ago the market was expecte...

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... whereas for example in the Netherlands you will be fined if you do not have an health insurance. The people in the United States that are not insured, will have to pay for surgery themselves, which could affect the behaviour of Meditech’s customers. Furthermore, pressure on health care costs in the United States is increasing, which makes material managers more important. Meditech was well prepared to handle this shift.

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Meditech’s market is still growing, endoscopic surgical techniques are getting more popular and after ten years, people found out that it has a couple of important benefits (lower costs, quicker recovery time). The increase of plastic surgery done on patients could also be a key-issue for Meditech, (think of liposuction etc.) Furthermore, the world’s population is growing, thanks to this, the need for medical treatment is also increasing.