The Worlds Largest Contract Manufacturers for Medical Devices - Research Paper Example

MDCM (A) write up... MDCM, Inc. is one of the world’s largest contract manufacturers for medical devices. For more than three decades the company had specialized in medical device contract manufacturing and assembly, clean room medical injection molding, and the design and fabrication of specialty assembly equipments for medical devices manufacturers. The company has now expanded globally with nineteen foreign subsidiaries with major locations in thirty five cities. MDCM Inc. is the oldest and largest FDA-registered subsidiary firm with facilities in eight states including New Jersey, Ohio, Colorado and California. The focus of the company was to provide an end-to-end package of medical device contract manufacturing services. MDCM was renowned for its ability to produce highly customized versions for unique applications of specialized equipment, self designed and fabricated, used in the assembly of medical devices. MDCM is one of the largest companies in the contract manufacturing and packaging services sector of the medical devices industry. The firm’s success can highly be attributed to its close partnership with its customers that had produced tremendous customer satisfaction. MDCM’s record of winning over customers have led to its tremendous growth which allowed the company to expand and grow its geographical reach through acquisition within the country and now the company derived 40% of its revenues from eight of its largest accounts. Today despite the victory the company has achieved over the past decades, the evolving and unpredictability and high level competency in the global market, the company had announced its fifth consecutive quarterly loss with net losses amounting to thirty three million dollars. Despite the acquisition and expansion the company was not able to catch up to the global capabilities of other competitors that called for changes in growth strategy. The expansions and acquisitions could not be realized since the company has let these companies operate on their own believing that by letting these acquired companies operate on the basis of self autonomy to better cater to the local customers. Thus there was no unified system for the global MDCM Corporation that would have let it operated under one system of standard operations and procedures leading to a worst operating and profit margins. There was poor coordination since the all other companies under the corporation operates independently that led to poorly controlled unified operations. The MDCM Inc. falls under the quadrant, responsive solutions provider. The company in order to cope up with the changes of the fast phasing competitive global market, with high end competitors is at risk of surfacing, the MCDM Inc. painstakingly underwent drastic transformation to keep the company’s sustainability in the market. In order to survive the loss that has plagued the company despite the business expansion they have acquired a higher rate of changes in order to be competitive on operational efficiency to correct the internal maze of why the company experienced loss in profits despite high customer satisfaction rates. The MCDM’s launching of the program Horizon 2000 have set the company in a new directive of operating for the betterment of the organization. Changes have been made mostly within the internal part of the company to achieve high level of standard operations directed to bring integral changes for the company. Under Horizon 2000, the company reorganized sharing a single brand across all subsidiaries with marketing sales functions centered on the new regional subsidiaries. Many operational changes have been made to achieve the goal set by the Horizon 2000 program such as the reduction in the number of suppliers, outsourcing all MDCM’s inbound and outbound logistics and aggressively reorganizing the production facilities. Through this the company chose to close old facilities and acquired newer efficient ones that were certified and approved according to the highest standards complying with the regulations for many different countries. MCDM Inc. lurks among a very competitive environment. The health industry is a vast industry and the medical devices industry that goes with it is a very good area of opportunity to earn nowadays. By analysis of Porter’s five forces principle the medical industry market entails a highly competitive area for it caters a large threat of entry. Since the health industry is a booming economic field many companies will venture among its opportunities and differentiation is very important since other companies might be able to come up with low cost procedures that would surely affect the customer bulk. High end product cost is also a factor against the power of buyers meaning the switching trend is very high if prices and quality are not sustained. And of course the threat of substitution is very high in the presence of small scale or lower price generic substitution. Though MCDM Inc. experienced net loss over the years despite the foundations it has built over the last three decades, the company has already developed strong linkage of customer satisfaction this explains why the company sustained within the economy despite operational issues. One important strategy the company did was changing the internal operations to further enhance and develop the bond they have made with the customers. The expansion of the company before was mainly for the acquisition of facilities and expanding customer coverage but the control of these subsidiaries was not fully unified. Now as part of the company’s strategic plan is to unify the systems through acquiring IT governance that would link all subsidiaries as one and under one system of operations. MCDM is no doubt a breakthrough in their field, but for it to be able to achieve its goals is to sustain in the modern global market. Through the Horizon 2000 the transition of the company made it even more sustainable in the modern market. The MCDM Inc. should develop a system that would analyze the company’s chances of sustainability in the global market on a regular basis so that strategies may be applied as early as change asks for it. Through this check and recheck system the company’s dynamics and versatility to adapt to changes will always be put to good use. For in the changing world of business and economy changes is not the key to survive, adaptation is. Read More