These trends enable danaher to improve their services

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Entrepreneurial Finance
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Chapter 12 / Exercise 4
Entrepreneurial Finance
Leach/Melicher
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These trends enable Danaher to improve their services and gain new customers. Threats Products. Danaher creates a variety of products that fulfill an assortment of needs, and many competitors want to meet those needs at a lower price. To do this, competitors will create imitations and lower quality products for emerging and lower–income markets. These products can cause Danaher to lose customers which can negatively impact the company. Danaher also
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Entrepreneurial Finance
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Chapter 12 / Exercise 4
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GCS2: DANAHER CORPORATION 11 struggles with maintaining a regular supply of products which can cause some customers to search for a similar product especially if they need it immediately. The lack of inventory can cause the company to lose business when certain illnesses or diseases are at their peak. Government. The industry in which Danaher operates is influenced by the government. The government can isolate the country and restrict trade which can hinder Danaher from helping other countries receive the medical products or services they need. The government could also establish production or environmental regulations. These regulations can force the company to change how they operate, produce, distribute, or maintain their products. Danaher must continuously review governmental regulations so that they adjust accordingly before it harms the company and hinders them from meeting the needs of their customers. Internal Factor Evaluation (IFE) Matrix. See Table B2. External Factor Evaluation (EFE) Matrix. See Table B3. SWOT Bivariate Strategy Matrix. See Table B4. BCG Matrix For the BCG Matrix, Danaher Corporation was compared against Johnson & Johnson. The latter is a multinational medical device, pharmaceutical and consumer packaged goods manufacturing company. Just like Danaher Corporation, its most significant segment is the diversified machinery segment. As at 2017, J&J revenues stood at $76.5 billion, hence, the leading firm within this specific industry, while that of Danaher Corporation stood at $2.5 billion which, relatively, gave it a market share portion of 0.03. The growth rate for Danaher Corporation stood at 6%[Lor15]. Relative to this information, the company is more of a question mark than it falls under dogs. This means that the company operates a low market share in this high growth market. It has a strong point for business, and has a potential of gaining market
GCS2: DANAHER CORPORATION 12 share and becoming a star, and ultimately a cash cow. However, there is a high likelihood that it can degenerate into dogs after a long period if the market growth declines. Competition Competitive Forces New entrants in the diversified machinery market introduce innovation, and this can put pressure on the corporation especially if they decide to follow lower pricing and providing value that is much more than Danaher’s. To tackle this competitive force, the company should be innovative, build economies of scale and also a capacity to invest in research. The bargaining power of suppliers is also another essential element that needs to be looked at – almost all of the companies within this industry buy their raw material from numerous suppliers.

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