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Holding Fast - Case Analysis Essay

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Problem Solving Case – Holding Fast

A. Situation Analysis Summary: CEO Peter Walsh has reservations with launching a promising new product of resorbable fixation devices into the orthopedic market. The dilemma is that the product has not tested to the quality standards of Crescordia. The market has been searching for such a product for 20 years, and a competitor has launched such a product that has failed in many circumstances. Though, they are still selling the product, and according to Jane LaMott VP of sales their competitor Innostat has begun to gain ground against Crescordia simply because we do not offer the resorbable product.
Crescordia has name a name for itself in the Orthopedic market of having the highest quality
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* Requires short-term capital expenditure to launch product, and provides less economies of scale to launching into the whole market.

E. Alternatives Evaluation Matrix Criteria | Importance | Option 1) Launch Fully | Option 2) Do not launch | Option 3) Launch in Pediatric Market | Financial Short Term | Med | - high capital expenditure | 0 - no change | Neutral..lower cost capital expense | Long Term Investment | High | + High potential | - may cause loss of market share | + High potential | Quality of goods produced | High | - could have failures | 0 - no change | - could have failures | Risk of launching new product | High | - quality name risk | 0 - no change | - quality name risk | Market Risk | High | + Market is Moving Forward | - may allow Crescordia to be left behind | + market is growing 6.5% | Summary | | -1 | -2 | 0 |
F. Recommendations:
Short Term – Tactical: The best short-term strategy would be to maintain the status- quo. No short term risk.
Long Term – Strategic: The future of the Orthopedic Market will be driven by innovation. While this innovation has risk, staying stagnant will leave your company left behind. While Crescordia may choose to move forward in a different area, this is a technology driven market, and standing still is falling back!
Without knowledge of other products that Crescordia can launch Walsh’s recommendation should be to launch the
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