AtriCure, INC Case Study Solution
Introduction:
AtriCure Inc.is one of the biomedical companies established in the United States in the year 2000 and its headquarters are situated in Mason, Ohio. It provides innovative technology for the treatment of atrial fibrillation (Afib). The Afib is one of the heart diseases which causes irregular heartbeats which leads to blood clots, heart failure, strokes and other heart related problems. Around 3.7 million people are affected with Afib in America. Atricure provides innovative products for the treatment of Afib related problems.Its products are used by most of the cardiothoracic surgeons around the globe.
Strategy:
The key elements of AtriCure strategies were to develop new innovative products which can improve its existing products. Due to advancement in technology, AtriCure is mostly focused towards its research and development for bringing new technology to the market. The development of the innovative products would help Atricure enter new markets and expand its growth in the existing markets.
The other strategy for AtriCure is that the company is investing in clinical science and also building relationships with the physicians. By investing in the clinical science and also establishing a relationship with the cardiothoracic surgeons, AtriCure is able to evaluate the effectiveness of its product and also developing new innovative products. The other strategy is through the recruiting of talented people such as salesman and biomedical engineers and also providing education and training to the employees for improving the overall efficiency of the organization.
Perspective to a different potential Strategy
Currently, company has a strategy to improve its current product and develop new technologies. This strategy gives essence to the company to retain its market share and hence maintain its position in the market, but the opportunities to capture new market shares are low in their current strategy. Therefore, to increase market shares and profitability AtriCure should modify its strategy and bring innovation to the market. By entering into new markets, the customer base of the company will increase, and company will be able to introduce a product in different markets which will increase the life of the product and profitability.
Furthermore, currently, the company expands itself through acquisition. Acquisition is a rapid growth method and a costly and time-consuming method. In acquisition, the company sometimes has to face many regulatory concerns like many acquisitions do not complete because of regulators, since they are concerned that the acquisition will create a mono polistic environment in the market, and hence they stop the acquisition process in the middle which wastes time and money of the company. Therefore, company should consider other methods like a merger with another company such as who deals in distribution, manufacturing of medical equipment or hospitals. By adopting this method, the company can control its cost and time as this is a less time-consuming method.Furthermore, by this method, the expertise of two companies becomes one and hence gives more opportunities to grow.
AtriCure acquired two biotech companies Estech and Contact.So we can say that AtriCure acquired related companies to expand its business further. While AtriCure could have taken another approach by acquiring unrelated companies which would diversify the company for example, if AtriCure acquires a distribution company, it will help in distributing the products at a wide range and target more areas and reduce company’s risks and costs.....................
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