Fresenius

Paper Summary:

This paper discusses the Fresenius business model. It discusses their role as a broad differentiator within the renal care industry and looks at ways that it can improve its business model. The paper discusses Fresenius' product line and market segmentation, as well as their distinctive competencies. The paper then looks briefly at market saturation.

From the Paper:

"I would improve the Fresenius business model by increasing market saturation. The focus on innovation and customer service increases costs, and the research costs in particular are fixed. This precludes Fresenius from adopting a low-cost strategy. This leaves that segment of the market open for possible development by another competitor. For Fresenius, the best way to hedge against that risk is to achieve greater economies of scale. This will allow them to remain competitive in terms of price while continuing to pursue technological leadership. This strategy does not remove the possibility of a low-cost competitor emerging, but it does allow Fresenius to offer better value for its services by offering vastly superior quality at a price only slightly higher."

Sample of Sources Used:

• Chapter 5 - Building Competitive Advantage Through Business-Level Strategy
• Fresenius product and service information from the Fresenius website: http://www.fmcna.com/, accessed July 19, 2008
• DaVita product and service information from the DaVita website: http://www.davita.com/, accessed July 19, 2008

More papers on Fresenius:

• Essay # 111836 : "Fresenius and Strategic Management"
• Analytical Essay # 145745 : "Fresenius Medical Care and Marketing"
• Essay # 111619 : "Fresenius' Corporate Governance"

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