Table of ContentsThreat of New EntrantsProduct Availability and QualityCurrent Situation Analysis - SWOTKPI - PESTLEIndustry Analysis - The 5 Forces of PorterFinancial AnalysisStrategic OptionsRecommendationsConclusionOverview Company based in Israel; Gavriel Iddan founded Given Imaging in 1998. Given Imaging put a tremendous amount of research, work and time into developing its “camera pill”. Doctors and patients use the PillCam to collect images of the gastrointestinal tract. This is useful in situations such as examining the small intestine to determine if a medical diagnosis is necessary. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay In August 2001, the PillCam was approved by the FDA, and the following October, Given Imaging became a public company. Given Imaging was acquired first by Covidien, then by Medtronic, which purchased them for around $49. 9 billion in 2015. This acquisition enabled more growth opportunities in both search and market share. Given was expected to transform the gastrointestinal endoscopy market if it continued to get PillCam approved in other countries. However, new entrants quickly appeared in the market, including: Olympus, Chongqing Jinshan Science & Technology, IntroMedic and FujiFilm Holdings. Thanks to Given Imaging's marketing efforts, they have been able to operate and distribute their product in various countries. A total of 75 countries distribute Given Imaging products, including: the United States, Germany, France, Australia, Brazil, Canada, Japan, Hong Kong and Israel. Problem Statement Given Imaging faced three major problems that prevented it from gaining a complete competitive advantage over other companies in terms of market share. Each of these questions is addressed below to determine how to resolve the issue at hand. Threat of New Entrants The colonoscopy market has been evolving and growing since 2005. Although the medtech industry is small, it is extremely competitive between price and quality. Although Given Imaging enjoys a good reputation among its consumers due to its innovative and high-quality products, they still struggle to keep up with some aspects. Olympus has developed a higher resolution imaging system than the PillCam and real-time visualization. With these benefits, doctors and patients have appreciated the visibility and immediacy that PillCam provides. Chongqing Jinshan Science & Technology is another company entering the market. In 2015, they started producing capsule endoscopy products and PH monitoring systems, which have been sold to more than 60 countries while also occupying the majority market share position in China. In 2012, IntroMedic created a product similar to Given Imaging's PillCam which became FDA approved. IntroMedic's product, known as MicroCam, generated revenue of $6. $69 billion in 2014 while Given Imaging ended 2013 with $50 million in revenue before its acquisition by Covidien. FujiFilm Holdings, another leading competitor, enjoyed the benefits of film production early on. They were developing medical diagnostic equipment that Given Imaging couldn't keep up with. While it was easier for established companies to stand out from their competitors, Given Imaging needed to take into account changing technology markets. Availability and quality of productsGiven Imaging has managed to offer other products inmore from the PillCam. However, maintaining the quality of their competitors' products has been a problem. Not only did Given Imaging produce the PillCam, but they also developed the PillCam COLON. Since 14 million patients undergo a colonoscopy each year, the need for a more effective screening strategy was essential. While PillCam COLON had great potential, Given Imaging failed to make the product produce quality imaging. For doctors, it is essential to see sharp, clear images of the gastrointestinal tract. Supplier and buyer relationship Given Imaging has been able to maintain a positive relationship with its Israeli suppliers. However, other countries stick to other suppliers that they know and rely on. Given Imaging relies on its sole suppliers for imaging sensors and transmitters. These vendors are third-party distributors, making it more difficult to educate customers. Since Given Imaging relies heavily on its manufacturers and distributors, it is difficult for it to generate optimal revenue. Current Situation Analysis – SWOT The PillCam has revolutionized the medical industry and created a transformation in both the immediacy and convenience of gastrointestinal tract examinations. Not only the PillCam, but also the PillCam COLON has allowed Given Imaging to gain a competitive advantage over other companies in the market. Given Imaging's relationships with suppliers, as well as their global sales network, has allowed them to expand and distribute their products to different countries around the world. Although Given Imaging has enjoyed success, its products fail compared to others due to the costs of high-resolution imaging and training. Other companies like Olympus have created a PillCam that offers high-resolution imaging as well as real-time viewing. Patients and doctors respect this method and it has shown a weakness in Given Imaging's operating system. Since the global economy is growing, more and more people have money to spend on experimenting with new products. This has created great opportunities for Given Imaging as a company, especially since it is the cheapest option compared to all other companies in the market. However, even though the PillCam is considered inexpensive, Given Imaging faces the risk that doctors may not want to adopt this new method because of the training it involves. Along with this, Given Imaging must wait for regulations, such as FDA approval, before it can distribute the product. KPI - PESTLE Given Imaging's external environment is based on these six competitive forces described. The political environment is constantly changing and it has become important for Given Imaging to track the stable status of each country's government. Tax regulations and health care laws play a primary role in how PillCam can be purchased, distributed, and consumed. Another factor to watch out for is trade regulations when distributing between countries or between businesses and consumers. Understanding the global economic currency and global income rates will ensure that the price of each product is feasible for the consumer. The medical field is constantly evolving and with it comes the opportunity to get new doctors to adopt the PillCam method. New doctors will be more willing to adapt and participate in training sessions, which will only make the PillCam method more common over the years. Social factors come into play when consumers know howGiven Imaging products. Consumers want to know that the PillCam is healthy, comfortable and safe when passing through the patient's body. Consumers around the world are very health conscious and take into consideration how a product could help or harm their body before consuming it. Among the technological factors likely to have a significant impact on the medical industry are spending on research and training. Given Imaging spends thousands of dollars on research each year to develop and advance its products. Doctors are also expected to spend money on technology in order to gain training and experience in handling the PillCam. In order to advance the company over its competitors, Given Imaging must conduct online marketing in order to reach its target market. FDA and other safety and health regulations come into play when it comes to legal matters. Given Imaging ensures that they are on track to comply with all rules, laws and regulations. Environmental issues such as sustainability are an important factor in America and European countries. Given Imaging has adopted recyclable packaging and disposable products to match what its consumers are looking for. Industry Analysis - Porter's 5 Forces The medical industry being small, over the years it has become very competitive for Given Imaging due to the entry of new entrants. Regulation, like product prices and consumer choices, results in high costs. Given Imaging is known for meeting consumer expectations. Although there is a high rate of mergers, Given Imaging enjoys brand and product loyalty from those who buy from them. The PillCam gave Given Imaging power over its competitors due to the innovative nature of the product. Since Imaging successfully patented the product, no one could copy it while reducing costs that other companies could not compete with. By reducing the cost of the PillCam to an affordable rate, Given Imaging was able to establish a positive relationship with its suppliers. Given Imaging has created bargaining power with its buyers through the creation of health and wellness in their products. The PillCam is safe, comfortable and easy to use for both doctor and patient, making it the most attractive option on the market. Medical technology has advanced around the world, helping companies develop products in the most efficient way possible. The threat these alternative products pose to the PillCam is not so much cost but rather the threat that someone will create a similar product with higher quality than Given Imaging. Financial AnalysisAnalyzing a 5-year trend of Given Imaging, the company has grown significantly in revenue. In Figure 4.1, it can be seen that Given Imaging made great strides in revenue generation between 2008 and 2011. The technology took off not only in the United States but also around the world. Patients and physicians were becoming increasingly aware and trained in the use of the PillCam as it became commonly used. Although Given Imaging's revenues were successful, their operating expenses declined year-over-year between 2008 and 2011. This decline could be due to the high costs of medical and technological equipment used to manufacture the products. Since Imaging's total assets and total liabilities have both increased significantly. Given Imaging has gained value in the products they have produced, this..