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…
• • • Is it safe for the patient? Would it really help? Would the health insurance company pay for it?
• • • • Is it safe for the medical staff? Is the procedure difficult? Would interventional cardiologists be willing to use it? How to persuade them to use it?
Health insurance companies
• • • • How expensive will it be? Will it help? Will it save them money? Are traditional methods cheaper (second angioplasty, CABG) ?
Due to the scope of this work only the most important points of the above will be discussed in the following:
Which method of delivering radiation is the most likely to succeed?
Based on the evaluation of the available methods, their advantages and disadvantages, Schneiderman and Gasson already came to the conclusion that the radioactive source-wire approach was the most promising and the best fit to Guidant. Guidant had tremendous expertise in traditional guide-wire and catheter technologies that would be relevant to at least part of the problem, such as designing and manufacturing source wires and coronary catheters and in training the cardiologists and cath lab staff in the new technique.
What kind of relationships are necessary? Acquisitions of other companies? Strategic alliances? Licensing the technology?