Reseach Paper

Running Head: Strategic Management – Stryker





Stryker: Strategic Management
ORM 680: Capstone in Strategic Management
Jaspreet Kaur (Jas)
Spring Arbor University
Terry O’Connor, Ph.D.
September 17, 2010






Table of Contents
Page
Abstract………………………………………………………………………………..3
Module 1………………………………………………………………………………4
Module 2………………………………………………………………………………6
Module 3………………………………………………………………………………18
Module 4………………………………………………………………………...…….21
Module 5………………………………………………………………………………25
Module 6………………………………………………………………………………29
Module 7………………………………………………………………………………32
References…………………………………………………………………………….37






Abstract
Stryker Corporation is the world’s leading medical technology and orthopedic company. The company has an establish brand name in the healthcare industry at home as well as globally. Stryker’s mission is to provide better quality and innovative products to the healthcare providers while enhancing patient care. The company’s products range from hospital beds to orthopedic implants. Today, Stryker Corporation serves hospitals, doctors, and healthcare personnel in over 120 countries. The company is able to compete and increase its profit margin by implementing various positive strategies such as: product differentiation, commitment to quality, excellent customer service, superior innovation, long-term cooperative relationship with customers and suppliers, socially responsible, and last but not the least; Stryker’s vision of making difference in patients’ lives.









Strategic Management Module 1 – Stryker
The purpose of this module is to analyze the existence of Stryker Corporation and the history of the company. In addition, the module will also describe Stryker’s goal, mission, vision, and quality statement.
History of Stryker
The purpose of Stryker’s existence is to provide exceptional results to the patients through innovative products and services around the world. Stryker’s history is rooted in transformation of the medical products that would change people’s lives positively. The spirit of innovation began with Dr. Homer Stryker, the founder of Stryker Corporation. Dr. Stryker began his journey of innovative ideas in the healthcare industry from Kalamazoo, Michigan in 1941. As an orthopedic, Dr. Stryker discovered that some of the medical products used in his field were less effective and were not meeting patients’ needs. He found various aspects of patient care that needed improvement. So he decided to invent new healthcare products which would provide solutions to patient’s needs. His goal was to build medical equipments that would increase the efficiency of the caregiver and reduce the cost of providing treatment. His first innovative device was the Wedge Turning Frame, a mobile hospital bed with a frame that pivoted from side to side. This turning frame, which came to be known in the industry as the "Stryker Frame," allowed doctors to position injured patients as needed while still keeping them immobile (stryker.com).
Dr. Stryker’s vision was to help patients lead healthier, more active lives through products and services that make surgery and recovery simpler, faster and more effective. Today, Stryker Corporation has become a global leader in medical technology with a purpose to serve and improve patients’ live in over 120 countries. Stryker product lines include various powered surgical instruments, orthopedic implants, trauma systems for use in bone repair, endoscopic systems, and patient care and handling equipment such as stretchers and hospital beds (stryker.com).
Stryker’s Goal
Stryker’s goal is “to become a stronger competitor in the global medical marketplace by designing, manufacturing, and distributing products that support physicians and hospitals as they seek to provide”, (stryker.com).
Mission Statement
Stryker’s mission is “to make difference by caring for the caregivers, helping them maintain order in their organizations, and restore health to their patients”, (stryker.com).
Vision Statement
Stryker’s vision is “to be the world’s most admired, fastest growing medical technology company”, (stryker.com). To be competitive in today’s world of globalization, Stryker puts 100% focus on the quality of their products, customers, and employees.
Quality Statement
Stryker’s quality policy is “At Stryker, we put quality first in everything we do. We continually improve our quality systems to develop, produce and market products that meet or exceed the requirements of customers and regulatory agencies around the world”. Stryker plays a major role in being a good corporate citizen. Their social responsibility highlights their commitments to:
· Product quality and innovation,
· Professional medical education,
· Our employees,
· Our communities,
· Our environment, and
· Our culture of ethics and compliance (stryker.com)
At last but not the least, Stryker’s corporate strategy is to attract and retain employees who are self motivated, high performers, and believe in making a difference. In partnership with “The Gallup Organization”, Stryker has developed a selection tool to find the right talent for the company. Stryker believes in hiring and retiring employees. Stryker emphasizes on providing opportunities to their employees and help them advance their career by taking on new responsibilities.
Conclusion
All in all, Stryker Corporation is doing a marvelous job in fulfilling Dr. Stryker’s dream of serving the medical community worldwide by designing, manufacturing, and delivering the innovative products and services. Today, Stryker Corporation has become the global leader in the healthcare industry. The company’s executives, management, and leaders are working diligently to achieve their goal of making difference in the lives of patients’ and their family members by providing them the survival tools. Moreover, Stryker Corporation very much believes in being socially responsible and plays a positive role in community development.
Strategic Management Module 2 – Stryker
The purpose of this module is to analyze the competitive forces in the healthcare industry and how it applies to Stryker by using Porter’s Five Forces Model. Also, this module will highlight the Nature of the competition in the industry. In addition, this document will explain the Life Cycle Stage that Stryker is at and the Implications of the competition.

Five Forces Model
Porter’s Five Forces Model – it is a model that helps analyzing the competitive forces in the industry environment. Managers may also use this model to identify the opportunities and threats that an organization may have from competitors in the industry. There are five forces under Porter’s model: the risk of entry by potential competitors, the intensity of rivalry among established companies within an industry, the bargaining power of buyers, the bargaining power of suppliers, and the closeness of substitutes to an industry’s products (Hill and Jones, 2010, p. 42).
Five Forces Model – Stryker
Stryker is a leading manufacturer of medical equipments that allow hospitals, doctors, caregivers, and surgeons to help patients meet their needs and improve their lives. Stryker's purpose is providing surgeons with advanced tools and techniques that allow them to act early in the process to help reduce patient pain (stryker.com).
The risk of entry by potential competitors
Potential competitors are companies that are not currently competing in an industry but have the capability to do so if they choose. A high risk of entry by potential competitors represents a threat to the profitability of established companies. But if the risk of new entry is low, established companies can take advantage of this opportunity to raise prices and earn greater returns (Hill and Jones, 2010, p. 43).
In today’s world of innovation and technology, healthcare industry is growing rapidly. Companies in the healthcare industry are coming up with new innovative products and services every day. Since the profit margin is high in the healthcare industry, more and more firms are getting attracted to it and would like to be the part of it. Companies around the globe are trying to produce products at low cost that are needed in the healthcare industry. Study shows that average life span has increased in recent years. Since people are able to afford expensive surgical procedures now more than ever before, organizations are willing to do anything to stay in the business.
In order to enter into the competitive market, an organization must have the knowledge of the industry, capital requirements, access to distribution, learning curve, and brand equity. Although there are several firms around the globe that are trying to enter into the market and ready to compete with Stryker but the major drawback is learning and understanding the rules and regulations of the FDA. Since Stryker Corporation has been in the business, it may be easier for them to follow and understand the FDA regulations. Organizations may invest in research and development, marketing, and manufacturing but it is very difficult to get the product approved by the FDA and launch in the market.
The risk of the potential competitor stay in the business is very low in the healthcare industry. Stryker has very strong and loyal customer base at home as well as internationally. They have access to materials and distribution channels. Since, Stryker works very closely with doctors and surgeons; they have the ability to convince the market positively. Stryker’s goal and promise is to make the difference in an individual’s life and provide them the best of the best.



The intensity of rivalry among established firms
Rivalry refers to the competitive struggle between companies in an industry to gain market share from each other. The competitive struggle can be fought using price, product design, direct selling efforts, and after sales and service support (Hill and Jones, 2010, p. 46).
In today’s world of globalization, the competition among organizations is increasing tremendously. Organizations are fighting to be on the top of the industry. Many organizations use various types of gimmicks such as product designing, advertising, sales, cheap labor, and selling techniques to gain the customer confidence and market share. Whereas in the past it was almost impossible to make products or open up business in another country, today because of the technological era and easy access to the information; things have become much easier. Companies today are able to produce high quality products at a very low cost in other nations using their resources. Because of this very reason, competition between organizations has become much tougher. Today, in order to stay in the business with good profit margin; organizations have to come up with new products at low cost.
As per the data, in 2009; in the Orthopedic Implants business segment, Stryker generated 61% of industries’ sales and in the MedSurg Equipment business segment 39%. Geographically, Stryker generated 64% of its sales from United States and 36% internationally (stryker.com).
Stryker has number of competitors in the industry of healthcare products, medical devices, orthopedic and trauma products, reconstructive products, implants, and hospital furniture. On the implants side of the business, Stryker faces competition from firms such as:
· Johnson & Johnson (JNJ) – the world's 2nd largest and most broadly based manufacturer of healthcare products, with a significant share of the consumer, pharmaceutical, medical treatment and diagnostic device markets.
· Zimmer Holdings (ZMH) – leading manufacturer of reconstructive orthopedic implants.
· Medtronic (MDT) – is one of the world's largest medical device companies, with a specialty in cardiac rhythm management.
· Smith & Nephew SNATS (SNN) – a British-based medical devices company with Orthopedics division headquarters in Memphis, TN., with specialty in hip and knee implants and orthopedic trauma products.
· Biomet (BMET) – medical device manufacturer based in Warsaw, IN, specializes in reconstructive products for hips, knees and shoulders, fixation devices, orthopedic support devices, dental implants and operating room supplies.
In the MedSurg segment, Stryker mainly competes with:
· Hillenbrand Industries (HB) (Hill-Rom division) – leading manufacturer of medical technologies and death care products such as burial and cremation caskets.
· STERIS (STE) (Hausted subsidiary) – leading manufacturer of healthcare, life sciences, and sterilization products (wikinvest.com).
Stryker Corporation continuously has to produce new innovative products and services in order to compete with other businesses in the industry at home as well as globally. Stryker’s brand loyalty, quality product, customer satisfaction, and their devotion and promise to make the difference in people’s lives definitely help the company with its continuous growth. These positive factors also encourage the healthcare industry to do business with Stryker.
The bargaining power of buyers
The bargaining power of buyers refers to the ability of buyers to bargain down prices charges by companies in the industry or to raise the cost of companies in the industry by demanding better product quality and price (Hill and Jones, 2010, p. 51).
Since Stryker strives to be the best in making sure that company is providing excellent customer service and innovative products to the doctors and other medical staff; the bargaining power of buyers is very low. Over the years, Stryker was able to build strong customer relationship in both United States as well as oversees. Stryker’s direct customers are the hospitals, doctors, and surgeon who are very loyal to company’s products and services. Stryker’s aim is to create positive impact on patient’s life and to achieve this goal; company spends huge amount of money in research and development of the products.
Since there is no alternative on the products that Stryker makes, Stryker has the power to set prices of their products. With that said, Stryker management definitely works very hard to satisfy customer’s needs and wants. In order to stay in the business and make profit, Stryker provides exceptional services to its customers such as: reliable product, new product training classes, in house sales team, and 24/7 customer service hotline.
The bargaining power of suppliers
The bargaining power of suppliers refers to the ability of suppliers to raise input prices, or to raise the costs of the industry in other ways, for example, by providing poor-quality inputs or poor service (Hill and Jones, 2010, p. 53).
It could be a threat to an organization, if the bargaining power of suppliers is high in any industry. Powerful suppliers tend to squeeze profit margin from the industry. For example if suppliers are charging high price to the buyers, in order to stay in the business; the buyers are also obligated to charge high prices to their customers. This continues cycle creates negative impact on the industry.
Fortunately, Stryker’s supplier’s bargaining power is not very high. Quality and reliability plays a major role in the healthcare industry and if supplier can provide better quality product with competitive rates, they will gain the power and opportunity to stay in the business for long. There are various reasons that the suppliers bargaining power is moderate in this industry for example: although the demand for aluminum, stainless steel, and cobalt is high but since the companies like Stryker buy their products in very large quantity; the suppliers are able to make profit. Secondly, there are always alternatives available if needed. Another reason is that in today’s world of globalization, companies do not have to rely on one supplier, they can always shop internationally. And lastly, since Stryker has been in the business for so long; they have good understanding and relationship with their suppliers. They both understand the needs of each other.
Threat of substitutes
The products of different businesses or industries that can satisfy similar customer needs can be characterized as threat of substitutes. The existence of close substitutes is a strong competitive threat because this limits the price that companies in one industry can charge for their products (Hill and Jones, 2010, p. 53).
Stryker Corporation is very fortunate that there are no substitutes in the market that can fulfill the demands of healthcare industry. Stryker management takes pride to be the part of this industry. Stryker Corporation works very closely with hospitals, doctors, surgeons, and caregivers to make sure that they are fulfilling their needs for the patients. Even though Stryker does not interact with patients directly, but patients are the number one priority for Stryker. Stryker’s goal is to produce quality products for the patients so that they can live and enjoy healthy lifestyle.
In order to improve patient’s lives, Stryker’s research and development team take suggestions from the people in the healthcare industry to make sure that they are producing the right product for the right situation. Stryker aims to produce safer products and procedures for the patients and their loved ones.
Nature of the competition in the industry
Both the medical and the instrument supply industry in the healthcare department are growing rapidly. The demand for products and services and the nature of the competition is very high in this industry. It is not easy to survive in the industry of healthcare. In order to stay in the business and be competitive in this industry, organizations must have the qualities of a leader.
Stryker is a leader of the health care industry. They did not become one of the leading companies over night. Stryker’s leaders and management had to work hard to be at this position and today the management and the employees at the Stryker Corporation are working even harder to maintain their position in the industry. There are number of strategies that Stryker Corporation follows in order to be the best in the industry such as: providing excellent customer service, working with doctors and surgeons, focusing on product quality, and finally; inventing new products to save people’s lives. Stryker Corporation believes in the moments that matters the most to them like, “At Stryker, we’re present in the moments that matter most – the seconds, minutes and hours in which patient lives are forever changed by the skills and knowledge of caregivers. We are accountable for each one of those moments, and for the ingenuity, efficiency, knowledge and familiarity that drive the frontiers of medicine forward. These are just some of the moments in which we’re there for caregivers and their patients – and just some the ways that define our growth opportunity as an organization”, (stryker.com).
Stages in the Industry Life Cycle
The life cycle stage of an industry is very similar to the life cycle of a living thing. The concept of industry or product life cycle stage is very much borrowed from the biology of living organism. As all living things go through various stages of biology such as birth, growth, maturity, and death; industries and organizations also follow the similar concept which helps identifies the stages of their life cycle. A useful tool for analyzing the effects of industry evolution on competitive forces is the industry life cycle model, which identifies five sequential stages in the evolution of an industry that lead to five distinct kinds of industry environment such as: embryonic, growth, shakeout, mature, and decline (Hill and Jones, 2010, p. 57).
Life Cycle Stage of Stryker
Stryker is one of the world’s leading medical technology companies and is dedicated to helping healthcare professionals perform their jobs more efficiently while enhancing patient care. The Company provides innovative orthopedic implants as well as state-of-the-art medical and surgical equipment to help people lead more active and more satisfying lives (stryker.com).
Under the Industry Life Cycle model, Stryker – a healthcare industry poses a characteristic of Growth industry life cycle stage. In a growth industry, first-time demand is expanding rapidly as many new customers enter the market. An industry grows when customers become familiar with the product; prices fall because experience and economies of scale have been attained, and distribution channels develop (Hill and Jones, 2010, p. 58).
There are various reasons why Stryker belongs to the Growth Industry market:
· Baby boomers – study shows that there is a growing need for orthopedic products in coming years. As baby boomers are retiring; they need knee, hip, spinal, and several other orthopedic replacement products in order to stay active.
· Business leader – Stryker has been in the business from many decades. Stryker management knows medical industry in and out. They are one of the leaders in the orthopedic implants, hospital beds, and other medical technologies.
· FDA regulations – since Stryker has been in the business, they understand the regulations governed by federal and state government. It would be difficult for a new company to enter into the business and understand the FDA requirements, rules, and regulations.
· Design and marketing – Stryker has an excellent strategy of designing and marketing their products. Stryker’s research and development department plays a major role in designing the products as per customer needs. Stryker sales team is committed to customer satisfaction and works very hard to market their product and providing the best customer service to their customers.
During the growth stage, the goal is to gain consumer preference and increase sales. Below is the marketing mix:
· Product – New product features and packaging options; improvement of product quality.
· Price – Maintained at a high level if demand is high, or reduced to capture additional customers.
· Distribution – Distribution becomes more intensive. Trade discounts are minimal if resellers show a strong interest in the product.
· Competitors – Competitors enter the market, often during the later part of the growth stage, there may be price competition and/or increased promotional costs in order to convince consumers that the firm's product is better than that of the competition.
· Promotion – Increased advertising to build brand preference (netmba.com).
Stryker Corporation is a successful industry at its growth stage. Stryker focuses on inventing new products and services to satisfy their customer needs. Stryker’s goal is to develop less complicated but yet more reliable instruments and equipments for surgeons, doctors, caregivers, and patients. Stryker management spends ample amount of money and time in research and development of the products that reflects customer’s needs, demands, and suggestions. Stryker has a strong customer base nationally as well as globally, which helps create positive sales and revenue growth.
Implications of the competition
Although organizations that are in the growth stage have power to make profit and increase growth rate of their products but they also have to face the threat of their competitors in the industry. For example, Stryker’s profit margin has been growing year after year both nationally as well as internationally. Stryker's net sales increased 12.4% to $1,799 million for the first quarter of 2010. International sales were $626 million for the first quarter of 2010, representing an increase of 11.9% (wikinvest.com). But Stryker is not the only business organization in the healthcare industry, corporations like Zimmer, J&J, Biomat, MDT, and many more are in the race too. In order to stay in the business, Stryker has to be competitive and innovative among all the competitors in the industry.
There are several implications now as well in the future that Stryker may have to face in order to be the part of the healthcare industry such as: lower the price of their products, develop and promote new products, capture additional market, attract new customers, meet customer needs, simpler design of the products, and finally; invest in lean manufacturing.
Conclusion
All in all, Stryker Corporation is the leader in the healthcare industry at home as well as globally. In today’s world of competition, technology, and globalization; the company may have to deal with some of the competitive forces in the industry known as Porter’s five forces but Stryker’s growth industry life stage characteristics definitely helps the company with positive growth, revenue increase, and profitability. Stryker Corporation’s policy of product differentiation, quality service, and customer satisfaction plays a huge role in company’s success. Furthermore, although there are few implications of the competition in the industry but overall Stryker Corporation have very strong roots in the medical world of technology.

Strategic Management Module 3 – Stryker
The purpose of this module is to analyze the external environmental forces such as Global, Technological and Demographic and how these forces influence the Stryker Corporation.
Global Forces
Global forces refer to the integration of communities and societies from all over the world. It is a system that allows countries to share their resources with one another in order to grow and be competitive in the world’s platform of business.
In the 21st century era, organizations must reach globally in order to be successful and competitive in the market. Whereas in the past it was almost impossible for an organization to even think about opening up a business in another nation, today globalizations has become a trend for every business. Today, the healthcare industry is at the peak when it comes to globalization. Study shows that people have become very health conscious and want the best medical treatment for themselves and their loved ones.
Stryker, the global leader in the medical technology earns about 36% of their revenues from the international market (stryker.com). Global market is creating a positive impact on today’s healthcare industry and Stryker Corporation is doing a tremendous job in fulfilling the needs of patients around the globe. Although there is a huge competition in the healthcare industry worldwide but the large organizations such as Stryker have the ability and resources to compete on the world’s platform. Company’s innovative products and services, reliability of the products, excellent customer service, and quality products help them compete with the other players in the healthcare industry. Stryker Corporation serves the medical professionals with enhancing patient’s lives in over 120 countries worldwide. The company’s purpose is to make difference in people’s lives positively by providing innovative medical products and services, simplified surgical techniques, and cost-effective solutions to medical professionals around the world.
Technological Forces
Technological forces can make established products obsolete overnight and simultaneously create a host of new product possibilities. Technological change is both creative and destructive (Hill and Jones, 2010, p. 66).
Today we are living in the era of technology. Companies around the globe are investing millions of dollars to produce new products and services. Technological development plays a major role in the healthcare industry. Medical, surgical, and pharmaceutical markets are coming up with new products with a goal to serve the humanity.
Stryker Corporation’s foundation stands on producing innovative and technological products with a purpose to make a positive impact on patients’ lives. The technological force creates a positive effect on Stryker Corporation and the healthcare industry. In today’s technological world, product innovation is a key to differentiate one organization from another in the market. With that said, the company is always trying to put lot of emphasis on developing new and innovative products to satisfy patient’s needs and wants. Stryker management is committed to offering advanced technologies that benefit both surgeons and patients while adding value in ways that have the potential to reduce costs to the healthcare system (stryker.com). Since Stryker Corporation’s growth is very much depending on their new technological products, the management spends tremendous amount of money in researching and developing of those products. The company works very closely with doctors and surgeons to understand their needs and requirements for the surgical procedures. The Stryker’s research and development team takes suggestions from the medical professionals and try to innovate products based on their needs.
Demographic Forces
Demographic forces are outcomes of changes in the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class. Demographic forces present managers with opportunities and threats an can have major implication for organization (Hill and Jones, 2010, p. 66).
The demographic force of the external environment plays a huge role in Stryker’s success. There are two components in the demographic force, the aging baby boomers and the prevalence of obesity; both of these factors create a positive impact on the healthcare industry. First, the baby boomers represent the vast majority of population in the United States and other developed countries around the globe. The expand population of baby boomers will help generate the revenues in the healthcare industry. As this segment of population is approaching to their retirement stage, they will more likely to require joint replacement surgeries such as knee, hip, and spine. Stryker Corporation will greatly benefit from this sector of population as the demand for the orthopedic implants will be rising.
Second, as per the Obesity statistics, about 30% of the population in the United States falls under the chart of obesity. Research shows that increased wait puts stress on joints which creates negative impact on our body. Because of this very reason, over weight individuals loose the strength to walk or perform any daily activities at a very young age. With that said the innovative medical technologies such as hip and knee implants can help satisfy their needs and can make a huge difference in their daily lives. These types of implants are positively affecting the orthopedic implant organizations such as Stryker.
Conclusion
All in all, the external environmental forces such as global, technological, and demographic play an enormous role in Stryker Corporation’s success. Although there is a huge competition in the healthcare industry but the globalization, innovative product strategy, aging baby boomers, and the prevalence of obesity are helping significantly with company’s development and revenue growth.
Strategic Management Module 4 – Stryker
The purpose of this module is to analyze the Functional Level Strategies such as superior quality, superior innovation, and superior responsiveness to customers. In addition this document will also discuss the Business Level Strategies such as differentiation. The focus of this module is to analyze and see how these strategies can be implemented on Stryker Corporation.
Functional Level Strategies
Superior Quality
High quality products are reliable, in the sense that they do the job they were designed for and do it well, and are also perceived by consumers to have superior attributes (Hill and Jones, 2010, p. 124).
Quality is a key to successful business. It is very important for a company to create a quality product in order to grow and stay in the industry. Companies in the medical industry must provide a quality product as they are dealing with patient’s lives.
Stryker Corporation is committed to provide quality products and services to its customers. Manufacturing and delivering high quality products is the way that Stryker is able to gain the competitive advantage in the medical industry. Stryker management works diligently to make sure that every product that comes out of the plant is qualified to perform the job that it is designed for. By providing quality products over 60 years, Stryker Corporation is able to earn customer’s trust. Stryker focuses on the effectiveness, reliability, and safety of the products and effectively meets the FDA requirements. In recent years, the company have adopted a more coordinated global approach to quality and established a corporate-level executive position to lead its efforts in this area. Stryker’s goal is to bring all of their divisions to the same level of quality excellence, so that their products offer the best possible results to the customers and their patients (stryker.com).
Superior Innovation
Innovation can result in new products that better satisfy customer needs, can improve the quality of existing products, or can reduce the cost of making products that customer wants (Hill and Jones, 2010, p. 130).
Innovation is the ultimate factor to company’s revenue growth. By creating innovative products; companies are able to achieve and maintain competitive advantage, profitability, and customer confidence.
Stryker Corporation spends ample amount of time and energy in order to meet customer’s needs. The company spends millions of dollars in research and development of the new products. Stryker’s research and development team is extensively engaged with doctors, physicians, and care givers to understand their needs and expectations in enhancing patient’s outcome. In addition, Stryker’s sales team takes suggestions from the hospitals, doctors, and experts in the medical industry on designing the product that would fit their needs. Moreover, Stryker’s marketing department is heavily involved in conducting customer surveys and feedbacks. The received feedback is used to implement the ideas in innovating new products. Stryker’s ultimate goal is to provide superlative care to the patients around the globe by designing and manufacturing innovative products and services.
Superior Responsiveness to Customer
To achieve responsiveness to customers, a company must give customers what they want, when they want it, and at a price they are willing to pay – so long as the company’s long-term profitability is not compromised in the process (Hill and Jones, 2010, p. 143).
Customers play a huge role in company’s success. For an organization to be successful, they must focus on their customers. The executives, the management, and the employees in an organization should always strive to exceed customer’s expectations.
Stryker Corporation was born with a mission to help patients’ live healthier and active life. Dr. Homer Stryker’s goal was to provide a product which would assist his patients and meet their needs. In order for a company to compete in the market, they must provide quality customer service with effective products and Stryker is doing a tremendous job in meeting customer’s needs. In order to keep effective customer relationship, Stryker management works very closely with doctors, physicians, and medical personnel who assist them with research and development of the new products. In addition, Stryker offers educational and technical support by providing one-on-one training classes, web based seminars, and 24/7 customer service hotline to healthcare professionals which helps improve patients’ outcome around the globe. Moreover, Stryker Corporation plays a major role in supporting the community at home as well as internationally. The company offers product donations and financial contributions to charitable organizations and universities which help them gain customer confidence and loyalty.
Business Level Strategies
Differentiation
A company pursuing a differentiation business model pursues business-level strategies that allow it to create a unique product, one that customers perceive as different or distinct in some important way (Hill and Jones, 2010, p. 161).
The differentiation organizations have the ability to gain competitive advantage for several reasons: first, they are able to satisfy customer needs and expectations. Second, they can charge premium price for their products, and finally; they achieve greater profitability because customers believe in their product and are willing to pay high price.
Stryker Corporation’s goal is to be the leading company in the medical industry. The company’s mission is to design and manufacture products that are not available in the market. In order to increase the revenues and market share, Stryker management is continuously finding ways to differentiate its products and services from the competitors in the industry. Stryker Corporation’s strategy of providing excellent customer service, working with medical personnel and taking their advice in improving and implementing new ideas in product development, spending large amount of money in research and development, and finally, delivering quality products to their customers help the company differentiate themselves from other competitors in the market.
Conclusion
All in all, both the functional level strategies and the business level strategies are very important for the company. Functional level strategies such as: superior quality, superior innovation, and superior responsiveness to customers and business level strategies such as: differentiation plays a huge role in company’s success. Stryker Corporation spends adequate amount of money to differentiate themselves from other competitors by providing excellent customer service, innovative and quality product to their customers.
Strategic Management Module 5 – Stryker
The purpose of this module is to analyze the vertical integration of Stryker. In addition this document will also discuss the Stryker Corporation’s long- term cooperative relationship with its suppliers.
Vertical Integration
A company pursues vertical integration to strengthen the business model of its original or core business and to improve its competitive position. A strategy of vertical integration expands its operations either backward into an industry that produces inputs for the company’s products or forward into an industry that uses, distributes, or sells the company’s products. Vertical integration is based on a company entering industries that add value to its core products because this increases product differentiation and /or lower its cost structure, thus increasing its profitability (Hill and Jones, 2010, p. 293).
In today’s world of technology, the medical industry is growing rapidly. The medical instruments and supplies industry of the healthcare market has become very competitive. It is very important for an organization to have the competitive advantage in order to stay in the business and compete with other competitors in the industry. In order to implement vertical integration strategy, companies can add value to their products, establish their own operations, or acquire other business in the industry. This may help increase the profitability, product differentiation, better product quality, and superior customer service.
Stryker Corporation’s vertical integration strategy
Stryker Corporation poses the qualities of vertical integration strategy. From product designing to customer support, Stryker’s mission is to add value to every single step in the supply chain. Stryker Corporation’s focus of designing new products and manufacturing them to the highest quality standards is the essence of Stryker’s commitment to patients and those who care for them (stryker.com).
Product Differentiation
First, in order to gain competitive advantage, increase profit margin, and compete with other competitors in the industry; Stryker Corporation focuses on product differentiation. Stryker management spends large amount of money in research and development of the products. The company’s goal is create a product that would help patient’s live healthy life. Stryker management takes pride in designing, developing, and manufacturing of the products for the customers in the medical industry. Stryker’s R&D and Sales team works very closely with doctors and physicians to understand their needs and expectations in serving the patients.
Superior Customer Service
Second, Stryker Corporation is able to add value to their products by providing superior customer service. Apart from researching, designing, implementing, developing, and manufacturing the product; the very important and significant factor of the supply chain is delivering the quality product to the customer. Without the customer support, an organization will not be able to function or gain profit margin. With that said Stryker Corporation focuses on developing excellent customer service, maintaining good relationship with potential and existing customers, and providing the best quality products.
Acquisitions
Finally, Stryker Corporation is able to gain market profit share by acquiring other businesses in the medical industry. For instance, in 2009; the company acquired Ascent Healthcare Solutions, the market leader in the reprocessing and remanufacturing of medical devices in the United States. The same year, Stryker also merged with OtisMed Corporation, a privately held software technology firm. OtisMed will focus on customizable instrumentation that has the potential to complement the many benefits that surgeons and patients realize from our Triathlon Knee System, as well as our other implants. And recently, Stryker Corporation has agreed to acquire Gaymar Industries that specializes in support surface and pressure ulcer management solutions as well as the temperature management segment of the healthcare industry (stryker.com).
Stryker Corporation’s cooperative long-term relationship with suppliers
Stryker Corporation has several long term suppliers who help the company fulfilling customer’s needs and expectations. Stryker’s main suppliers are: master metal, advance manufacturing, national precision, and DVR technology.
Stryker Corporation has established a value-added long term relationship with its suppliers. Stryker’s goal “is to improve the surgical experience by developing instruments that are more reliable, more intuitive and less complicated to use. To accomplish this goal, Stryker seeks close, long-term partnerships with its suppliers. Suppliers are key links in corporation’s supply chain and are partners in assuring customer satisfaction. The company is committed to working with its suppliers to ensure customer satisfaction. Stryker Corporation, along with their suppliers, jointly contributes delivering exceptional results”, (stryker.com).
The Stryker management believes in treating their supplier as “partners”. The corporation provides guidelines and tools to their suppliers so that they could become the part of the organization’s supply chain. Stryker Corporation has realized that in order to be successful in the business world, the company has to create a positive relationship with their suppliers. With that said, the Stryker management has constructed a partnership methodology for their suppliers in order to create a strong foundation. To make the final transaction beneficial, the company’s mission is to set expectations, promote honesty, communicate, and provide support to its suppliers.
Conclusion
All in all, Stryker Corporation believes in the vertical integration strategy. In order to be competitive in the business world, the company focuses on developing its business by product differentiation, superior customer quality, and acquisitions. The corporation spends large amount of money in researching, designing, and implementing of the products. In addition, the company takes pride in providing excellent customer service to their existing and potential customers. Finally, in today’s world of technology; Stryker Corporation is expanding its business and services by acquiring other businesses at home as well as globally. Moreover, the Stryker Corporation has a cooperative long-term relationship with its suppliers. The company’s strategy of treating its supplier as “partners” and building a “supportive” relationship helps Stryker achieving and meeting customer needs.

Strategic Management Module 6 – Stryker
The purpose of this module is to analyze an industry that Stryker Corporation has acquired in last 10 years, identify the rationale for entering the industry, and the strategy that was used to enter the industry. In addition, the document will also describe the rationale for using the strategy and the outcome of acquiring the industry.
In today’s world of competition and globalization it is very important for a company to have technological power in order to compete in the market. In the 21st century era, more and more companies in the healthcare industry are looking ways to differentiate their products by revolutionizing and implementing technological alterations to their products. Companies in the medical industry are either using vertical or horizontal integration strategies to compete in the market. With that said today many organizations are participating in mergers, joint ventures, and acquisitions in order to gain the competitive advantage.
Acquisition
Acquisition are used to pursue vertical integration or diversification when a company lacks the distinctive competencies necessary to compete in a new industry, so it used its financial resources to purchase an establish company that has those competencies (Hill and Jones, 2010, p. 334).
Acquired Industry
In the past decade, Stryker Corporation have merged and acquired various industries both at home as well as internationally in order to gain competitive advantage in the healthcare industry. In February 2005, Stryker Corporation acquired eTrauma.com Corporation. eTrauma, a privately-held developer of software for Picture Archive and Communications Systems (PACS), belongs to a technological industry in the healthcare market. Under the agreement, Florida-based eTrauma Corporation was acquired for $50 million in cash and became a wholly-owned subsidiary of Stryker. Combined with the Stryker Endoscopy imaging business, eTrauma sells its proprietary PACS image management and viewing software, Office PACS(TM), to the orthopedic market with functionality specific to the workflow of orthopedic practices (stryker.com).
Rationale for Entering the Industry
The rapid growth of technology in today’s world has led the companies in the healthcare industry move towards the technological industry. The focus behind acquiring the eTrauma Corporation was the growing demand of imaging in the medical industry. By acquiring eTrauma Corporation, Stryker was able to create a product which would help the company gain profit margin and compete within the industry. The digital imaging and electronic medical records are two of the most exciting and fastest growing markets today, and eTrauma is solidly the U.S. leader in orthopedic PACS due to its singular focus on this specialty. This acquisition allowed Stryker to leverage the extensive relationships with orthopedic surgeons and the digital integration of the endoscopic and image-guided surgery technologies. This combination offered a significant improvement in the capture and transfer of orthopedic patient imaging information (stryker.com).
Related Diversification
Related diversification is a corporate-level strategy that is based on the goal of establishing a business unit in a new industry that is related to a company’s existing business units by some form of commonality or linkage between the value chain functions of the existing and new business units (Hill and Jones, 2010, p. 320).
Strategy used to enter the Industry
Stryker Corporation used related diversification strategy in order to enter the industry of imaging technology. To gain markets’ share in the area of imaging technology, Stryker Corporation acquired eTrauma Corporation so that both the companies may share their resources to design and manufacture a quality innovative product for the consumers in the medical industry. This acquisition helped the company building strong and long-term customer relationship. Moreover, the acquisition helped facilitate Stryker’s mission of providing the best innovative products to the hospitals and doctors in order to create positive difference in patients’ lives.
Rationale for using the Related Diversification strategy
Stryker’s goal of using the related diversification strategy was to gain competitive advantage in the industry by designing and presenting a product that was not available in the market by other competitors. I think that using the related diversification strategy in order to acquire eTrauma Corporation was the best approach for Stryker Corporation because first of all, by sharing resources the company was able to design an innovative product which provided the opportunity to meet customer’s expectations and needs and secondly, the acquisition helped the company achieve customer confidence and gain market share.


The outcome of acquiring the industry
Stryker Imaging (eTrauma) provides medical imaging solution enabling healthcare providers to make more informed medical decisions (stryker.com). The eTrauma addition to Stryker’s family definitely helped increased the profitability. In today’s competitive world, organizations are looking for ways to save time and eliminate extra workforce; the innovation of image and picture communication software created a revolution in the orthopedic market of healthcare industry. With the help of imaging software, now doctors are able to produce high-quality resolution graphics, which are cost effective, faster, and secure. Moreover, the information can be transferred electronically rather than keeping on prints.
Conclusion
All in all, Stryker Corporation; the leader in medical technology has grown tremendously in last 10 years. The company has acquired many businesses and industries in order to help medical staff, serve patients’ needs, gain market share, and customer confidence. In February 2005, Stryker Corporation acquired eTrauma; an imaging developer software company with the idea to design a product for the orthopedic offices. The company used related diversification strategy with the focus to gain technological power and provide an innovative product by sharing resources. The outcome of the acquisition was positive and helped Stryker achieve profitability and market share. Today, the imaging software is being used in the United Sates as well as globally and creating a positive impact in the healthcare industry.
Strategic Management Module 7 – Stryker
The purpose of this module is to analyze the implementing strategy in a single industry such as increase responsiveness to customer groups. In addition, this document will also discuss the implementing strategy across countries such as global standardization strategy and the impact of these strategies on Stryker Corporation.
Implementing Strategy in a Single Industry
To pursue business model successfully, managers must find the right combination of structure, control, and culture that links and combines the competencies in a company’s value chain functions so that it enhances its ability to increase responsiveness to customer groups (Hill and Jones, 2010, p. 404).
An organization must implement organizational designs in order to be successful and profitable in an industry. To gain competitive advantage and profit growth, organizations may execute ideas like increasing responsiveness to customer groups.
Implementing Responsiveness to Customer Groups
For a company pursuing a strategy based on increasing responsiveness to customers, it is vital that the nature and needs of each different customer group be identified. To promote superior responsiveness to customers, a company may design a structure around its customers (Hill and Jones, 2010, pg. 408).
Meeting customer needs, increasing responsiveness to customers, and providing quality customer service are the key factors to a successful business. Companies may differentiate themselves in the industry by keeping positive reputation and providing quality customer service. Responsiveness to customer groups is the key which sets apart Stryker Corporation from other competitors in the industry. Stryker Corporation takes pride in completing and fulfilling customer demands. Stryker management works very diligently to fulfill the needs and expectations of their customers. Stryker’s customers are hospitals, doctors, caregivers, and other medical personnel. The company’s R&D and Sales department works very closely with their customers and takes their advice in order to bring a new product in the market. To be successful in the business, Stryker Corporation has developed a long-term working and professional relationship with their customers by providing various key elements such as: quality customer service, face to face support, on the job training, and good ethical business practice. Stryker Corporation is committed to provide innovative products with reliable and quality customer service to its customers.
Implementing Strategy across Countries
In today’s world, globalization plays a huge role in company’s success and failure. In the 21st century era, more and more companies are participating in globalization strategy. Today, businesses are using globalization strategy in many ways in their organizations such as; some companies are performing manufacturing functions of their products overseas which helps the company save cost on the other hand some companies are selling their products abroad to gain profit margin. Companies may implement strategies like global standardization in order to grow their business at home as well as overseas.
Stryker Corporation is a broadly based, global leader in medical technology that consistently delivers exceptional results. Stryker works with respected medical professionals to advance meaningful innovation reduce health-care costs and improve people's lives (stryker.com).


Implementing a Global Standardization Strategy
Under the global standardization strategy, the company locates its manufacturing and other value chain activities at the global location that will allow it to increase efficiency, quality, and innovation (Hill and Jones, 2010, p. 437).
By implementing the global standardization strategy, the companies are able to perform at a global level. The strategy helps organizations to operate its business in various countries around the globe. In addition, by executing global standardization strategy; companies are able to gain competitive advantage by effectively increasing efficiency, product development, and quality service. Organizations may also expand their business globally by merging, joint venturing, and acquiring other companies in the industry.
Stryker Corporation, the global leader in the healthcare industry participates in the global standardization strategy. From U.S. to pacific, Stryker Corporation is a world known medical technology company in the healthcare industry. In order to increase efficiency, quality, and innovation; the company has divisions such as manufacturing, sales, marketing, and R&D in many parts of the world. Stryker’s headquarter is located in the United States but the company has several offices, locations, plants, and branches across the globe. The global standardization strategy helps Stryker Corporation to compete in the global market and provides the advantage of using foreign skills and capabilities which in return creates a positive impact on the company. Thus, the company is able to increase profit margin and sustainable growth.
Conclusion
All in all, the implementation of both the increase responsiveness to customer groups and the global standardization strategies play a huge role in Stryker Corporation’s success rate. By providing quality, reliable and efficient customer service; Stryker Corporation is able to create a long-term relationship with its customers. The company’s management works very closely with their customers to achieve its goal of making positive impact on patient’s lives. In addition, Stryker Corporation, the global leader in medical technology is also benefiting from its global standardization strategy. The company’s management works together at home as well as abroad to achieve its goal of creating innovative products, providing value, and making difference in the lives of others.












References
Hill, C., Jones, G. (2010). Strategic Management an Integrated Approach (9th ed.). Printed in
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