Stryker Corporation Essay

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In the medical sales industry, most of the competitive advantage comes from the doctor preference. Because of the high cost and amount of time that it takes to learn how to use a different company’s medical equipment, most doctors use one company’s products for life. Stryker has always recognized the existence of brand loyalty and has made it a top priority to develop excellent relationships with its customers. Hospitals that use Stryker’s equipment are more likely to continue to buy from Stryker because of their diverse product offerings. The key factors that differentiate Stryker from its competitors are innovation, reliability, service and reputation. As of December 31, 2010, Stryker owned approximately 1,125 United
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38% of its sales come from its MedSurg products segment, which produces medical and surgical equipment. 17% of its sales come from Neurotechnology and Spine products, which produces spine and CMF implants, interventional spine equipment, and neurovascular products.
Stryker continues to have a consistent flow of new products that expand markets. They just recently bought MAKO Surgical Corp. for $1.65billion, which develops robotic technology for hip and knee replacement surgeries. As long as Stryker continues to develop innovate new products and acquire its competition will continue to gain market share.
Stryker has a Quick ratio of 3.08, which shows it has the ability to meet any short-term cash needs. Stockholders Equity has increased by 8.18% from Q2FY12 to Q2FY13. This tells me that it is very unlikely that they will face any financial difficulty in the near future. It also indicates they have the cash flow to continue growing through acquisitions.
One disrupter for Stryker and all companies in the med tech industry will be the new Affordable Health Care Act. The Affordable Health Care Act will include a 2.3% excise tax on medical devices. For Stryker, 2.3% of their revenues is $100million dollars, which is 20% of their R&D budget. This would be a direct hit and will have a significant impact on Stryker especially since 65% of their revenues come from the United States. In 2012, U.S.
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