What were they trying to achieve? In 1991, DIA attempted to remodel and upgrade the arduous, time-consuming luggage check-in and transfer system. The idea involved bar-coded tags being fixed to each piece of luggage that went through ‘Destination Coded Vehicles’. This would fully automate all baggage transfers, integrate all three terminals, and reduce aircraft turn-around time significantly. Why did they fail? The main cause of failure was the scope creep of quality and cost schedule. When the company DIA was contracted to help in BAE’s project, they failed to meet the time schedule of the company. They instead stuck to their schedule of two years. The management took unnecessary risked because the project was underscored yet the management took unnecessary risks. Another item in their agenda which the company ignored: the company ignored the airline’s planning sessions and omitted the airline as a stakeholder. The project, as a result, featured oversized sports/ski equipment luggage and separate maintenance track and another track was not designed at all. The large part of the system was not done and had to be redone. This made the airport to be delayed by 16 months and has had a loss of $2 billion were incurred as a result. The project was later scrapped. Lesson learned in the project is stakeholder engagement in project management. From the project management principles, the two companies failed to communicate to one another during the project until it was too late. Communication is one of the pillars in for project success. Another mistake which DIA committed was failing to plan and consult regularly. References Hartmann, T., & Spit, T. (2016). Legitimizing differentiated flood protection levels–Consequences of the European flood risk management plan. Environmental Science & Policy, 55, 361-367. Benson, D., Lorenzoni, I., & Cook, H. (2016). Evaluating social learning in England flood risk management: An ‘individual-community interaction’perspective. Environmental Science & Policy, 55, 326-334. Chan, M. J., Huang, Y. B., Wen, Y. H., Chuang, H. Y., Tain, Y. L., Wang, Y. C. L., & Hsu, C. N. (2015). Compliance with risk management plan recommendations on laboratory monitoring of antitumor necrosis factor-α therapy in clinical practice. Journal of the Formosan Medical Association. Running head: BCG MATRIX COMPETITIVE ANALYSIS FOR MEDTRONIC 1 BCG MATRIX COMPETITIVE ANALYSIS FOR MEDTRONIC 2 BCG Matrix Competitive Analysis for Medtronic Tyrell S Grant BCG Matrix Competitive Analysis for Medtronic BCG Matrix Medtronic is a multinational organization that specializes in the production of different medical devices. The company has different Strategic Business Units (SBU) that are also known as departments. The departments are divided depending on the roles being played, and these are what that determines that amount of finances that will be invested in the department. The reason is that the different roles earn profits or .

1. What were they trying to achieve?
In 1991, DIA attempted to remodel and upgrade the arduous,
time-consuming luggage check-in and transfer system. The idea
involved bar-coded tags being fixed to each piece of luggage
that went through ‘Destination Coded Vehicles’. This would
fully automate all baggage transfers, integrate all three
terminals, and reduce aircraft turn-around time significantly.
Why did they fail?
The main cause of failure was the scope creep of quality and
cost schedule. When the company DIA was contracted to help in
BAE’s project, they failed to meet the time schedule of the
company. They instead stuck to their schedule of two years. The
management took unnecessary risked because the project was
underscored yet the management took unnecessary risks.
Another item in their agenda which the company ignored: the
company ignored the airline’s planning sessions and omitted the
airline as a stakeholder. The project, as a result, featured
oversized sports/ski equipment luggage and separate
maintenance track and another track was not designed at all.
The large part of the system was not done and had to be redone.
This made the airport to be delayed by 16 months and has had a
loss of $2 billion were incurred as a result. The project was
later scrapped.
Lesson learned in the project is stakeholder engagement in
project management. From the project management principles,
the two companies failed to communicate to one another during
the project until it was too late. Communication is one of the
pillars in for project success. Another mistake which DIA
committed was failing to plan and consult regularly.

2. References
Hartmann, T., & Spit, T. (2016). Legitimizing differentiated
flood protection levels–Consequences of the European flood
risk management plan. Environmental Science & Policy, 55,
361-367.
Benson, D., Lorenzoni, I., & Cook, H. (2016). Evaluating social
learning in England flood risk management: An ‘individual-
community interaction’perspective. Environmental Science &
Policy, 55, 326-334.
Chan, M. J., Huang, Y. B., Wen, Y. H., Chuang, H. Y., Tain, Y.
L., Wang, Y. C. L., & Hsu, C. N. (2015). Compliance with risk
management plan recommendations on laboratory monitoring of
antitumor necrosis factor-α therapy in clinical practice. Journal
of the Formosan Medical Association.
Running head: BCG MATRIX COMPETITIVE ANALYSIS FOR
MEDTRONIC 1
BCG MATRIX COMPETITIVE ANALYSIS FOR MEDTRONIC
2
BCG Matrix Competitive Analysis for Medtronic
Tyrell S Grant

3. BCG Matrix Competitive Analysis for Medtronic
BCG Matrix
Medtronic is a multinational organization that specializes in the
production of different medical devices. The company has
different Strategic Business Units (SBU) that are also known as
departments. The departments are divided depending on the
roles being played, and these are what that determines that
amount of finances that will be invested in the department. The
reason is that the different roles earn profits or positively
contribute to the company at different rates. It is for this reason
that the company recently conducted a BCG Matrix to evaluate
the company's market potential and the rate of medical devices
market growth. During the evaluation, the company focused on
two of its most important Strategic Business Units (SBU), and
they are the manufacturing department and research and
development unit.
At Medtronics, the manufacturing/production department is the
business unit that holds all the medical devices production lines
which are over 30 lines. On the other hand, the research and
development unit is the section that plays of conducting a
market search to be able to know the products to manufacture,
how to design them depending with the market needs, and any
other detail that would help all the other departments. The
manufacturing unit is the high cash generating section of the
business as compared to R&D and the finances obtained from
the production can be used to promote R&D to improve its
profitability levels of contribution to the business.
Product lifecycle
Medtronics products are in the growth stage of development.
This is the case because the products have started to receive
massive recognition in the market after the healthcare industry
around the world has embraced advanced technology. The
products have the highest advanced technology, and the
products have high ability to detect errors as well as promote
fast and efficient services. The devices are developed and

4. manufactured for physicians to treat over 30 chronic ailments
including; urinary incontinence, chronic pain, diabetes, spinal
disorders, heart failure, and down syndrome among many
others. Because of the growth that the company is recording,
different outlets are being established in different countries
around the world. However, due to changing technologies
around the world, the company expects even to design and
manufacture more and better products.
Competitive Forces Analysis
The global healthcare industry has expanded massively due to
increasing demand for products and services in this sector. It is
a reality that the world medical researcher are still identifying
new chronic ailments and this has made the industry to require a
high number of people to come up with new products and
services that will help in the treatment and prevention of these
diseases. Medtronics is one of these companies that have
focused on the production of chronic diseases treatment devices.
However, Medtronics is not the only company in the industry as
many other companies offer Medtronics direct competition
(Maresova et al., 2015). These direct competitors include;
Johnson and Johnson, Boston Scientific Corporation, and St.
Jude Medical LLC among many others. Nevertheless, the
demand for medical devices is still high and more and more
companies are being established and joining the industry hence
making it highly competitive.
Porter’s Five Forces
· The Threat of New Entrants: The threat of new entrants in the
medical devices production industry is continuously increasing.
In the early days, only a few businesses had been able to invest
in the industry and come up with devices that could be
acceptable in the market. It is for this reason that companies
like Medtronics and Johnson and Johnson have been able to
dominate the market. However, with the increasing rate of
advanced technology evolution, the art of designing and
manufacturing high-quality medical devices is becoming
familiar to many people hence increasing the threat of new

5. entrants.
· Bargaining Power of Buyers: due to the high demand for
medical devices and the fact that the company only specializes
in chronic disease testing devices makes the company unique.
This is something that has made the company to have power and
control over buyers and buyers bargaining power hence being
extremely low and to some extent nil. According to Rothaermel,
(2015); this is the case because even the new entrants that are
joining the industry have not been able to manufacture products
that are as quality, efficient, and effective as those of
Medtronics and hence clients do not have many choices but to
purchase Medtronics products.
· Bargaining Power of Suppliers: the power of supplier at the
Medtronic Company is relatively high. The reason is that all the
medical devices being designed and manufactured by the
company relies on raw materials being supplied by the
suppliers. However, to control the impact and influence of
suppliers, the company has ensured that it deals with diverse
suppliers. The realization that competition is high by suppliers
has made suppliers to be effective regarding supplying quality
raw materials, at fair prices, and also promptly.
· The Threat of Substitutes: The threat of substitute is starting
to take shape in the medical devices production industry. Many
new entrants that are joining the industry are manufacturing
substitutes. The reason is that designing and manufacturing
quality medical devices like those of Medtronics is expensive
and many investors cannot afford. Hence, many companies are
entering the market where they are designing and manufacturing
medical devices that are cheap and low quality only to
substitute Medtronics medical devices.
· Competitive Rivalry: competition rivalry is not stiff in the
medical devices production industry. The reason is that in the
present times, physicals and medical facilities are only
searching and dealing with companies that are manufacturing
high-quality devices because of the high levels of accuracy and
efficiency being demanded by the healthcare industry. As a

6. matter of reality, a majority of companies in the industry are
striving to learn and gain information from renowned companies
like Medtronics which have already dominated the market to
gain the expertise necessary for the production of high-quality
products.
Competitive Profile Analysis
Medtronics Company is one of the medical devices producing
company that occupies the largest market share. There are also
other close competing brands like Johnson and Johnson as well
as St. Jude Medical LLC. All the three companies can be said to
be supplying 80% of the world’s medical devices. To be able to
understand the three companies’ levels of competence, the
various success factors were considered, and an evaluation was
conducted to determine the main factors that could have
contributed to the great success at Medtronics and close
competing brands (Kramer et al., 2013). From the competitive
profile matrix that was carried out, it was found out that the
following success factors are the reason behind three competing
companies success; advertisement, customer service, brand
value, economic profit, customer loyalty, and quality.
The two SBU's plays an important part and have collaboratively
worked together to make sure that these success factors are
achieved. The production department ensures that the products
being manufactured are of high-quality and steadily
manufactured. With high-quality products, it has been possible
for the company to establish and maintain a good brand value.
On the other hand, the R&D unit has ensured that adequate
research is being done on the best advertising strategies that
will be able to create the desired brand image as well as identify
the best customer services. All these considerations after
evaluation pointed to one great achievement which is customer
satisfaction and loyalty.
Competitors Ratios Analysis
Medtronics and Johnson and Johnson have proved to be
almost in the same level of operation and financial capability.
However, Medtronics can be said to be doing better especially

7. on products availability and accessibility in the market.
According to the analysis carried out, Medtronics has occupied
27% of the market share, Johnson and Johnson have occupied
25% and St. Jude Medical LLC, has occupied 18%. The St. Jude
Medical LLC has a high amount of expenses as compared to
Medtronics and Johnson and Johnson (Kramer et al., 2013). The
high expense can be said to have been as a result of lower sales
that the company records as compared to these other two brands
as well as a high loan facility that the company continues to pay
back. However, all the companies are striving to make their
equities valuable where Medtronic shares stand at $30, Johnson
and Johnson shares stands at 25, and St. Jude stands at $12.
Alternative Strategies
Different strategies exist that can help companies to record
growth especially for companies like Medtronics that is in its
growth stage of a product lifecycle. According to the company's
goals, vision, and mission statement, the company is focused on
making tremendous growth. It is for this reason that the
company focuses on identifying potential stars to invest in and
making as high levels of milking from the cash cows available
as possible. Due to this reality, the only available growth
alternative strategy for the company is the expansion strategy.
The expansion strategy can be employed by Medtronic Company
to help determine other ways to break into other markets and
raise their strategic competitive advantage. Medtronic can
utilize expansion to help increase growth and mitigate a rapid
decline by not expanding and adapting to the market demand
and growing market share and using resources. Some
advantages of expansion: R&D can be enhanced within the
organization, opportunity to improve innovative ideas and
diversify products and also economies of scale. These benefits
are enormous and can help the Medtronics Company to record
tremendous growth and even move from the growth stage to
maturity stage where then the company can seek a stability
strategy to avoid the products from getting to the decline stage.
This way, the company can be able to remain dominant in the

8. market for long, venture into the most potential markets
available and earn as high profits as possible. There are also
possible disadvantages of this strategy. They include; the
approach requires massive capital investment, high levels of
outsourcing which can also be relatively costly.
References
Kramer, D. B., Tan, Y. T., Sato, C., & Kesselheim, A. S.
(2013). Postmarket surveillance of medical devices: a
comparison of strategies in the US, EU, Japan, and China. PLoS
medicine, 10(9), e1001519.
Maresova, P., Penhaker, M., Selamat, A., & Kuca, K. (2015).
The potential of medical device industry in technological and
economical context. Therapeutics and clinical risk management,
11, 1505.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill
Education.