Strategic analysis of the case, fisher and paykel healthcare Research Paper

Strategic analysis of the case, fisher and paykel healthcare - Research Paper Example This paper is a strategic analysis of the case of Fisher and Paykel Healthcare. The paper begins with an introduction of the company, its products and the industry in which it operates. As the paper proceeds it unfolds the external environment analysis which examines political/legal, economic, socio-cultural, global and technological factors. The most promising findings of this scrutiny were that aging and obesity has fuelled demand for healthcare products in major economies of the world which has created growth prospects for FPH. The industry environment analysis unfolds that the industry is in the phase of growth and offers great market potential across global markets. But all the market attractiveness is accompanied with high cost of research and development, patents and licensing, and huge marketing and distribution expenses which creates implicit barriers for new entrants. The demand for healthcare has inflated in the past 2 decades with the growing awareness of health issues in US and other global markets, which will serve as a driver of investment in research and development and medical devices production. The internal and external analysis of the company reveals the FPH strengths, weaknesses, opportunities and threats. This analysis bears implications for FPH, consequently it leads to a proposal of growth, price leadership and innovation led differentiation strategies which leverage the FPH core competencies and capabilities, for future market expansion and penetration for all its product categories. Introduction of Fisher & Paykel Healthcare The company was established in 1934 by Mr. Paykel in New Zealand. It started as an imported of electronics from USA. Later in 1977 a separate division was established to support the humidification business at F&P and finally by 2001 the company split up into two separate identities for electronics and healthcare business named as: Fisher & Paykel Appliances, FPA, and Fisher & Paykel Healthcare, FPH. FPH business deals in humidification systems, OSA products and technologies, and neo-natal care. The FPH is attributed to innovative developments in healthcare products. The company’s business intent revolves around patient value and comfort. FPH is looking forward to penetrate the market through a whole array of new products; non invasive ventilation, oxygen therapy, laparoscopic surgery, and humidity therapy. External Analysis: Industry The healthcare industry is characterised with two major segments one which deals with outpatient care through provision of healthcare equipment, it deals with the ultimate consumers/patients; and the other segments deals with technological innovations in those healthcare equipments. The FPH business and operations lie in the later segment; for innovation and development of healthcare technology. The industry is in the phase of growth and offers great market potential across global markets. But all the market attractiveness is accompanied with high cost of research and development, patents and licensing, and huge marketing and distribution expenses which creates implicit barriers for new entrants. The demand for healthcare has inflated in the past 2 decades with the growing awareness of health issues in US and other global markets, which will serve as a driver of investment in research and development and medical devices production. Macro Environment Analysis The macro environment analysis is the examination of FPH’s external factors that might influence and manipulate the eff ectiveness and efficacy capabilities of business operations (Balogun, 2001). These factors are external forces that lie beyond the scope of an organisation’s control, which are illustrated below: 1. Economic Factors: The economic conditions vary across the globe. These are influenced by the business activity