Nexus Cardiac Case Study

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Executive Summary

Nexus Cardiac is a company that dug its roots through hard work and innovation. Getting its start through the incubation program at Wilkinson University, it has carved out a portion of market share due to its patented products and award winning technological advancements. The market has been growing year after year with roughly $21 billion in cardiovascular rhythm management devices sold last year alone. Although there are emerging markets in India and China, Nexus Cardiac remains dialed in on the North American market. Currently Nexus Cardiac is faced with the same issue that makes or breaks many successful startup companies; to sell out to a larger company or seek risky expansion opportunities.  Externally Nexus Cardiac faces a consumer environment that is fixated on reducing costs through inventory management. This creates challenges for manufacturing companies, and emphasizes the need to minimize lead times, and ensure that our supply chain is as efficient as possible in order to remain relevant in bid processes. This problem came to fruition through a combination of unanticipated product success, limited manufacturing outsourcing options, and limited cash flow/resources. This problem will be solved by focusing on supporting our foundation, utilizing resources on hand in an appropriate manner, and expanding at strategic times. From start to finish this implementation process will last 18- 24 months and will ultimately lead to a more stable production set up that is capable of supporting our current pacemaker production. Ensuring we capitalize on sales opportunities for our current products will allow us the financial freedom to continue expanding and patenting innovative products, which will ultimately take our growth to the next level. This will support the long term goal of generating positive cash flows as a multi-product company, and be rewarding both personally and financially for key stakeholders.

Issue Identification

SWOT analysis:

Strengths:

1. strong research and development department that is highly efficient and productive
2. higher quality of the product and no post implementation issues
3. fewer similar product in the market

Weakness:

1. sales department does not have technical knowledge
2. lack of security as some products misses during deliveries by 3PL
3. lack of sales and marketing staff.

Opportunities:

1. can increase customer satisfaction by delievery on time
2. can increase market share by hiring more sales representatives

Threats:

1. changing trends in demand as customer demanding low price and high quality for the product
2. lots of competitors in the market.

Short term issues

Product Focus:

Presently Nexus Cardiac is confronting disarray as far as where assets and consideration ought to be engaged. There are two items that are in the patent procedure at the present time. Nexus will confront various difficulties if these items are licensed. These new items are more technological advance but are complex in manufacturing. Company does not able to focus on which product they should focus on and should manufacture in bulk.

Market research and forecasting: The company lacks proper market research as they do not know market trends due which they are unable to focus on which product they should grow .they lack the information of current market situation and does not have any clue regarding the competition in the market.

Long term issues

Manufacturing capacity

Nexus' main need right currently is to help their pacemaker item. They are expecting an increase in sales in upcoming two years, and the present manufacturing  capacities are not sufficiently adequate to help the anticipated development. If this issue isn't tended to quickly there is the possibility to pass up a lot of offers.

Sales Staff:

So as to develop Nexus should definitely build their business staff. Starting at the present moment, sales representative  can work with interior  partners so as to have the information required to inspire social insurance chiefs. The company needs quality salesmen who have knowledge of both medical and technical knowledge. As current employees does not have enough medical and technical knowledge although they have sales knowledge.

Operating environment:

Porter’s 5 forces model:

Risk of New Entrants:  Low  risk of new participants due to the progressed range of abilities and startup capital required so as to pick up piece of the pie. In any case, new mechanical headways are continually being found and licenses on progressive innovation could move piece of the overall industry rapidly

 Substitutes: Currently there are beside no substitution choices for individuals who require heart medicinal gadgets so as to stay alive. As there are very few companies that are in medical equipment market and most of them are not focused so there is low risk of substitute.

Bargaining Power of Customer: As of right now clients have restricted bargaining power. The product is used for saving lives so customer will pay for any price and they do not have  much choices in the market So they have less to no power of bargaining

Bargain Power of Suppliers :The aggressive condition among a few major players keep providers genuine, at the end of the day the value purpose of this item is to a great extent controlled by the providers as they give a propelled item that is required in critical situations. They have huge power because they produce high end product  which are used to save lives.

Industry Rivalry: The heart restorative gadget market is overwhelmed by a chosen few major organizations. Their budgetary capacities enable them to buy rivalry, licenses, and set up a business power so as to stifle out most other challenge

Qualitative analysis:

The present market condition is incredibly competitive however just among a couple of organizations. Various barriers like certification, licenses, to passage make it very difficult for an organization to start and enter overall industry in the field of cardiovascular medicinal items. There is more than 1000 assembling organizations in Canada alone, anyway not every one of them are focused. Every year there is more weight on medicinal services directors to discover approaches to cut expenses. Incorporated into these cost cutting activities are two patterns that straightforwardly sway Nexus Cardiac these are  they can reduce the lead time so that patients receive the product as early as possible.