Radiometer, a leading provider of blood gas analysis equipment and accessories, was a Denmark-based company and had been providing its services for critical patient all over the world. In 2013, the company marked a sales revenue of more than DKr 1,791 million ($272 million) through a combination of subsidiaries and distributors. In vitro diagnostics market, blood gas analysis developed portion of the $27.7 billion. However, the current sales data showed positive growth, the company enhanced its efforts for long term growth. The ultimate threat for the Radiometer was the high volume testing equipment that it provided because advancement in technology might obsolete their equipments early.
The company efforts did not generate any result when it endeavored to tackle this threat. Would it be better for Radiometer to continue the focus on blood gas analysis and add value to its current efforts? Or it must switch to other growth opportunities? Although, the CEO and handling stockholder, Johan Schroder, had skepticism about the current sales growth sustainability, but it would help the Radiometer to expand into the U.S., if any potential partner acquires the company. What could be the effective strategies for the survival and growth in the future?
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