Publications
Publications
- September 2014
- HBS Case Collection
Radiometer, 2013
By: John R. Wells and Galen Danskin
Abstract
In 2013, Radiometer continued to lead the world in blood gas analysis equipment and accessories, selling direct and through distributors to hospital central laboratories, point-of-care locations, and non-hospital medical locations. Founded in 1935 and based in Denmark, Radiometer was acquired in January 2004 by US-based Danaher Corporation. Under Danaher's direction, Radiometer began an intensive program of process improvements using the Danaher Business System (DBS), an iterative tool system and company culture that sought to continuously improve the company's growth and lean and leadership capabilities.
However, as CEO Peter Kürstein reviewed the successes of the last ten years, he conceded that Radiometer still faced significant challenges. Progress in the USA, the world's largest market, remained elusive. How would Radiometer break through in the US? Then there was the issue of long-term growth. Roche and Siemens were investing heavily in multiple diagnostics segments. How should Radiometer respond? Which other segments of diagnostics should Radiometer consider? Quest Diagnostics was selling HemoCue, a Swedish-based global niche leader in hemoglobin testing. Would acquiring them make sense for Radiometer?
However, as CEO Peter Kürstein reviewed the successes of the last ten years, he conceded that Radiometer still faced significant challenges. Progress in the USA, the world's largest market, remained elusive. How would Radiometer break through in the US? Then there was the issue of long-term growth. Roche and Siemens were investing heavily in multiple diagnostics segments. How should Radiometer respond? Which other segments of diagnostics should Radiometer consider? Quest Diagnostics was selling HemoCue, a Swedish-based global niche leader in hemoglobin testing. Would acquiring them make sense for Radiometer?
Keywords
Medical Devices; Medical Equipment ＆ Devices; Mergers ＆ Acquisitions; Strategic Analysis; Strategic Change; Family Business; Strategy; Mergers And Acquisitions; Medical Devices And Supplies Industry; Denmark; United States
Citation
Wells, John R., and Galen Danskin. "Radiometer, 2013." Harvard Business School Case 715-410, September 2014.
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