Previously, we had an elaborate discussion on the SWOT analysis of Johnson & Johnson – One of the top healthcare providers globally. In this blog, we will take a deep dive into the SWOT analysis of Medtronic.
Medtronic is a leading provider of medical technology, services and solutions globally and one of the top 50 companies of 2021. Medtronic is established in over 150 countries providing solutions for more than 70 medical conditions.
Another aspect contributing to the success of Medtronic is the marketing strategy of the organisation. With the rapid switch of the world going online digital marketing is rather a flourishing career. If you are interested to learn about it check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we go into the SWOT Analysis of Medtronic, let us know about Medtronic as a company.
(Founder – Earl Bakken & First Battery-operated, External Pacemaker)
A global leader in healthcare technology – Medtronic was founded in 1949 by Earl Bakken and Palmer Hermundslie as a medical equipment repair shop. In 1957 they created their first battery-operated, external pacemaker. The company was founded by the two with the moral intention of helping others through their entrepreneurial skills and knowledge of the field.
Over the years the company has introduced many crucial technologies and surgical instruments which includes mechanical implant devices, drugs and many biological delivery devices. The company has been growing for 72 years and counting with their only mission to “Alleviate pain. Restore health. Extend life.”
|Founder||Earl Bakken and Palmer Hermundslie|
|No. of Employees||104,950|
|Market Cap||$142.0 Billion (2021)|
|Annual Revenue||$30.1 Billion (2019)|
|Net Income/ Profit||$3.6 Billion (2019)|
Products by Medtronic
- Pharmaceutical Products
- Medical devices
- Healthcare products
Competitors of Medtronic
Medtronic’s top five major competitors are
- Baxter International
- Johnson & Johnson
- Boston Scientific
- Becton Dickinson
SWOT Analysis of Medtronic
SWOT analysis of Medtronic is a study which is undertaken by the company to determine its core strengths, weaknesses, opportunities and threats. It is a framework that is used to evaluate a company’s competitive position which later helps in strategic planning.
SWOT analysis can be conducted by any popular brand or any brand which is still new in the market can make use of this template to evaluate internal and external variables that might influence the brand authority and market development.
To better understand the SWOT analysis of Medtronic, refer to the infographics image below:
Below is a step-by-step detailed guide to help you with the SWOT analysis of Medtronic.
Strengths of Medtronic
- Strong Brand Portfolio: Medtronic has invested huge amounts toward building a strong brand portfolio which plays a very important role in expansion towards new product categories.
- Skilled Workforce: The company invests huge amounts of funds into training their workforce which results in increased efficiency and returns.
- Quick Expansion Rate: Medtronic has been successfully expanding in new markets which have helped them open up new revenue streams and diversify the economic risk in other markets.
- Strong Brand Recognition: Medtronic is a globally recognised brand name well established in 350 destinations in 150 countries.
- Reliable Suppliers & Distributors: Medtronic has a very reliable set of suppliers for their raw materials and distributors for their products which help them overcome any bumps in the distribution cycle.
- Employee Retention: Medtronic is one of the best 50 companies to work at according to the wall street journal review of 2021 with a global employee turnover rate of 17%.
Weaknesses of Medtronic
- Inefficient Financial Planning: The current asset ratio and liquid asset ratio of the company depict that the funds can be used more efficiently and see better growth.
- High Attrition for the Workforce: The company has faced a higher attrition rate in the workforce as compared to its competitors despite spending huge funds towards their training.
- Poor Product Marketing: While the company has strong sales their product marketing and positioning aren’t as strong which can as a result gives opportunity to their competitors.
- Ineffective R&D: Though the company spends above the industry average towards their research and development it still lacks behind its competitors when it comes to product innovation.
Opportunities for Medtronic
- New customers via Online channels: Over the years the company has invested toward building its online channels and this has resulted in opening up a whole new channel of customers via online channels which can be leveraged into growing further after understanding their customer base.
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- Stable Cash Flow: With Medtronic’s stable cash flow they can start investing in new and viable product lines which will open up new revenue channels for the company.
- Low Shipping Prices: With the lower shipping prices the transportation cost for the company comes down which can result in increased profitability or can also be used to benefit their customers.
Threats to Medtronic
- Currency Fluctuations: As the company is working globally with currency fluctuations as the political aspect of countries varies as per their own regulations.
- Consumer Behaviour: The current switch for customers from offline to online can be a threat to the physical infrastructure set up by the company.
- Irregular Supply: As much as a company is working toward coming up with new innovations there is an irregular supply of new products in the market which can pose a threat to the company and result in loss of customer base.
- Technological Advancements: The technological advancements by a few competitors can pose a threat to Medtronic as today’s customers are more attracted towards new technological advancements and may be lost to competitors’ offerings thus reducing the market share of Medtronic.
- Competition: There is always an ongoing competition that puts downward pressure on the prices. This could lead to lower profits if it makes changes in the price or may also result in lower market share if it doesn’t make price changes.
This ends our complete SWOT analysis of Medtronic. Let us conclude our learning below.
Over the years Medtronics has not only managed to secure its market base has also become one of the leading providers of healthcare technologies in the industry. In the SWOT analysis of Medtronic, we observed that the company has stable funds and invests in every aspect as much as needed to make sure it contributes to their growth.
With the rapid changes in the working environment, the world is shifting to a digital approach. Medtronics has made huge investments to improve their online channels but yet doesn’t seem to have a good market coverage through the online mediums.
The company has definitely beaten its competitors when it comes to investing in building an online presence and conducting research for the same. Marketing plays a very crucial role in a company’s success in today’s time especially when the world is going digital. Learning about digital marketing skills has become very important. If you are interested to improve or build your skillset towards the same check out IIDE’s 4 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT Analysis of Medtronic has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. You can also read our comprehensive study on the SWOT Analysis of JP Morgan Chase.
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