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Guidant: Radiation Therapy

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Case-Study Guidant
1.How attractive is the radiation therapy opportunity for Guidant?
First we will determine the size of the market and its growth potential. Then we will assess the attractiveness of the market for radiation therapy in general using the concept of Porter's 5 forces. Furthermore we will connect this information with Guidant's specifics and its complementary assets to find out if this specific market is attractive for the company.

Market size and growth potential
The market's size is yet unknown, because, as with many new technologies, it is just now taking shape. In table A on page 14 of the case, a matrix of different growth scenarios together with different developments regarding the dominant technology can be …show more content…

Firstly Guidant already has a good network of distribution for complementary goods (CA). Secondly they have a very good reputation in the healthcare sector. Thirdly Guidant has experience with complementary service in the sector such as e.g. training. Furthermore the company needs this possibly huge market with its potential for growth to make future growth possible. On the other hand Guidant is not immune to competition and the complicated supply-chain will force them to get external know-how into the company, either through acquisition of, or alliances with other companies.

2.Recommendation
Whether Howard should recommend an entry into the radiation therapy business, or not, depends on the evaluation of the following 4 involved perspectives and their factors:



Guidant
• • • • • • • • • Which method of delivering radiation is the most likely to succeed? Which are the key players in that area? What are their competences? Which skills and capabilities does Guidant need to acquire? Which components are necessary to compete effectively? What kind of relationships are necessary? Acquisition of other companies? Strategic alliances? Licensing the technology? Is the technology protectable by patents etc.? How long will the time to market be? How long will the FDA approval take? How will it fit with other Guidant

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