IndexThreat of New CompetitorsProduct Availability and QualityCurrent Situation Analysis - SWOTKPI - PESTLEIndustry Analysis - Porter's 5 ForcesFinancial AnalysisStrategic OptionsRecommendationsConclusionOverview Company based in Israel; Gavriel Iddan founded Given Imaging in 1998. Given Imaging has invested enormous amounts of research, work and time in the development of its “photographic pill”. Both doctors and patients use the PillCam as a tool to collect images of the gastrointestinal tract. This is useful in situations such as viewing the small intestine to determine if a medical diagnosis is needed. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay In August 2001, 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 bought them for about $49. 9 billion in 2015. This acquisition has enabled greater growth opportunities in both research and market share. Given was expected to transform the gastrointestinal endoscopy market if it continued to win approval for the PillCam in other countries. However, new competitors have quickly emerged in the market, including: Olympus, Chongqing Jinshan Science & Technology, IntroMedic, and FujiFilm Holdings. Thanks to Given Imaging's marketing efforts, it was able to operate and distribute in a variety of countries. A total of 75 countries distribute Given Imaging products, including: 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 its market share. Each of these issues is addressed below in how to address the issue at hand. Threat of New Competitors The colonoscopy market has changed and grown since 2005. Although the medical technology sector is small, it is extremely competitive in terms of price and quality. Although Given Imaging enjoys a good reputation among its consumers for its innovative and high-quality products, consumers still struggle to keep up in some aspects. Olympus has developed a higher resolution imaging system than the PillCam and real-time display. Thanks to these advantages, both doctors and patients have appreciated the visibility and immediacy that the PillCam has to offer. Another company that entered the market was Chongqing Jinshan Science & Technology. In 2015, they started producing capsule endoscopy products and PH monitoring systems, which have grown to be sold in over 60 countries, also maintaining the majority market share position in China. In 2012, IntroMedic created a product similar to Given Imaging's PillCam that became FDA Approved. IntroMedic's product, known as MicroCam, had sales of $6. 69 billion in 2014, while Given Imaging ended the year in 2013 with $50 million in revenue before being acquired by Covidien. FujiFilm Holdings, another major competitor, quickly capitalized on film production. 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 the competition, keeping up with changing technology markets was something Given Imaging had to consider. Availabilityand product qualityGiven Imaging was able to create other products in addition to the PillCam. However, keeping up with the quality of competing products has been a challenge. Not only did Given Imaging produce the PillCam, they also developed the PillCam COLON. Since 14 million patients undergo colonoscopy per year, the need for a more efficient screening strategy was essential. Although PillCam COLON had great potential, Given Imaging failed to make the product produce quality images. It is essential for doctors to see clean, clear images of the gastrointestinal tract. Supplier-Buyer Relationship Given Imaging has managed to maintain a positive relationship with its Israeli suppliers. However, other countries have stuck with other suppliers they know and rely on. Given Imaging relies on its own unique suppliers for image sensors and transmitters. These vendors are third-party distributors, which makes it more difficult to increase customer awareness. Because Given Imaging relies so heavily on its manufacturers and distributors, it is difficult for them to achieve optimal revenue. Current Situation Analysis - SWOT The PillCam has revolutionized the medical industry and created a transformation in both the immediacy and comfort 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. Imaging's relationship with suppliers, as well as their global sales network, has allowed them to grow and distribute in several countries around the world. While Given Imaging has been successful, its products fail compared to others due to high-resolution imaging and training costs. Other companies like Olympus have created a PillCam that offers high-resolution images along with real-time viewing. Both patients and doctors respect this method and it has shown weakness in Given Imaging's operating system. As the global economy is growing, more and more people have money to spend on testing new products. This has created great opportunities for Given Imaging as a company, especially since it is the least expensive option compared to all other companies on the market. However, even if the PillCam is considered economical, Given Imaging risks being threatened by doctors who, due to the training required, do not want to adopt this new method. On top of that, Given Imaging is required to 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 outlined. The political environment is constantly changing and it has become important for Given Imaging to keep pace with each country's stable government status. Tax regulations and healthcare laws play a primitive role in how the PillCam can be purchased, distributed, and consumed. Another factor to keep an eye on is trade regulations when distributing from country to country or business to consumer. Understanding the global economic currency and global income rates will ensure that the price of each product is feasible for the consumer. The medical sector is constantly growing and with it the opportunity for new doctors to adopt the PillCam method also grows. New doctors will be more willing to adapt and participate in training sessions which will only make the PillCam method more common as the years go by. Social factors come into play when consumers know how Given Imaging products work. Consumers want to know that the PillCam is healthy, comfortable and safe when passing through the patient's body. Consumers all over theworld are very health conscious and take into consideration how a product might help or harm their body before consuming it. Among the technological factors that can have a significant impact on the medical sector are research and training expenses. Given Imaging spends thousands of dollars on research each year to develop and improve its products. Doctors are also expected to spend money on the technology to gain training and experience in operating the PillCam. To move the company ahead of its competitors, Given Imaging must conduct online marketing to reach its target market. The FDA and other health and safety regulations come into play when it comes to legal issues. Given Imaging makes sure they are on track to comply with all rules, laws and regulations. Environmental issues such as sustainability are an important factor when it comes to America and European countries. Given Imaging has adopted recyclable packaging and disposable products in line with what consumers are looking for. Industry Analysis: Porter's 5 Forces Since the medical industry is small, it has become very competitive for Given Imaging over the years due to new competitors. The costs of regulation, product prices and consumer choices are high. 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 purchase from them. The PillCam has allowed Given Imaging to gain leverage over its competitors due to the innovativeness of the product. Given Imaging successfully patented the product, so that 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 price, Given Imaging was able to build a positive relationship with its suppliers. Given Imaging has created bargaining power with its buyers by building health and wellness into its 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 is advancing around the world helping companies make products in the most efficient way. The threat that these alternative products pose compared to the PillCam is not so much the cost but rather the threat that someone will create a similar product with a higher quality than Given Imaging. Financial Analysis Analyzing a 5-year trend of Given Imaging, the company has substantially grown in revenue. In Figure 4.1 it is visible that Given Imaging has made great progress in generating revenue during the period 2008-2011. The technology has taken off not only in the United States but also around the world. Patients and doctors were becoming more aware and trained in the use of the PillCam as it became more commonplace. Although Given Imaging's revenues have been successful, operating expenses have declined year over year from 2008-2011. This decline may be due to the high costs of the medical and technological equipment used to make the products. Given that Imaging's total assets and total liabilities have both increased significantly. Given Imaging has gained value in the products it has made, which has helped boost the numbers in terms of both assets and liabilities. Strategic Options Given Imaging has a strategic focus on low product cost, product innovation and supplier relationships. Regarding the cost of the product, Given Imaging has successfully managed to have their PillCam at the lowest cost. This gave them a competitive advantage over other companies.