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Fisher & Paykel health care: Just add Water - Essay Example

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Fisher & Paykel Health Care: Just Add Water Executive Summary Fisher & Paykel was established in the year 1934 in New Zealand. Since its incorporation, the company has been growing at a rapid rate and expanding its business in the global markets. The study represents the external analysis of the general environment in which the company is conducting the business…
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Fisher & Paykel health care: Just add Water
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Fisher & Paykel health care: Just add Water

Furthermore, competitors and their strategies have been evaluated to acquire an edge over the rivals. To compare the competencies of the company in accordance with the external environment, internal analysis has been conducted. The capabilities and resources have been identified and core competencies of the company have been evaluated. The value chain analysis has been done in order to analyse the primary and support the activities of the firm. Moreover, the strength, weakness, opportunity and threats have been evaluated to analyse the current strategies of the company. Lastly, the company’s future strategies have been identified which is likely to increase the revenue. Table of Contents Executive Summary 2 External Analysis 4 Background and Industry 4 General Environmental Analysis 5 Industry Environment 7 Competitive Environment 8 Internal Analysis 9 Capabilities Identification 9 Core Competency Analysis 10 Value Chain Analysis 11 SWOT Analysis 13 Current Strategies 14 Future Strategies 14 References 16 Bibliography 18 External Analysis Background and Industry In the health care sector, Fisher and Paykel emerged as an idol among the business houses in New Zealand from the time of its incorporation in 1934. The company is famous for making appliances of humidification technology in the global health care industry. It successfully developed a new appliance famously known as Obstructive Sleep Apnoea (OSA) in addition to their intensive care for humidification. In earlier days, the company operated with 50 employees in an open plan environment. However, identifying the need of team-based approach, the company designed a modern building in Auckland which serves as the company’s headquarter and provide sufficient free spaces for employing a large workforce. Initially the company manufactured respiratory humidifier appliances; however, in 1977 a separate medical section was established. Following the success of the medical division in the late 1990s, several investors intended to focus their attention, thereby, reducing the market value of lower-margin appliance businesses. Thus, in the year 2001, Fisher & Paykel was divided into two separate units namely, Fisher & Paykel Healthcare (FPH) and Fisher & Paykel Appliances (FPA) (Hanson, Hitt, Ireland & Hoskisson, 2011). General Environmental Analysis The most crucial factor affecting the healthcare equipment industry was probably the demographic trends. According to an assessment carried out by the United States (US) Census Bureau in 2000, the age group 65 and above represented 12.4% of the total US population. Thus, the expenses made in the healthcare sector by this segment amounted to 40% of their total expenditures. Furthermore, the US Congressional Budget Office (CBO) has estimated that the age group of 65 and above is likely to double in the next 30 years while adults under the age of 65 were expected to rise by 12 percent. World Health Organisation (WHO) forecasted that the global age group of 65 and above which accounted for 390 million in 1997 will rise to 800 million by 2025. China and Japan were considered to be amongst the countries with immense growth opportunities for the medical appliances industry. The estimated data from WHO reveals that the mentioned age group will rise to 200 million with 25 million people in China and Japan respectively (Hanson, Hitt, Ir ... Read More
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