Case Study Essay

Decent Essays

As the case explains, economic changes are a big concern for Danaher’s success. The following topics will be analyzed in addressing those concerns: Business-Level Strategy, Corporate-Level Strategy, External Analysis, Internal Analysis, Recommendations.
Business Level Strategy
Danaher uses mainly a Cost Leader Strategy with a few qualities of Product Differentiation. Details of this can be found by looking at their DBS system. The system is designed to increase productivity and reduce costs. This gives them a learning curve and technological advantage. We will further discuss each of these advantages.
The Learning Curve advantage is very valuable to the Danaher Corporation. The DBS was created based on the study of Toyota’s lean …show more content…

They were not so much interested in vertical integrations, but in seemingly unrelated diversification. Their strategy for this has been to identify companies with growth rates between five and seven percent, along with other criteria. By limiting the growth size they were able to acquire large enough companies to be worth their time, but small enough companies to allow for great improvements and implementation of their DBS process.
This strategy allowed them to reach economies of scale in their new company partly by their shared activities. This is what gave their strategy real value. They wanted room to improve the companies. They did not attempt to take over the biggest companies, like many corporations have done. They typically aimed for companies in a segmented market, allowing them to consolidate the market. This gave this strategy the rarity for a competitive advantage. Their strategy has become costly to imitate because of their history and success with implementing their DBS in their corporate strategies.
External Analysis
One of the main threats to Danaher Corporation is the Threat of Rivalry. The private equity firms have been adopting the conglomerate merger strategy quite rapidly. The appeal of this strategy has opened the doors for the private equity firms and increased the threats of new entrants and rivalry. This increase in threats has made it very difficult for corporations to

Get Access