Case 1
Hearing with the aid of implanted technology:
The case of Cochlear™, an Australian high-technology leader
Summary
Cochlear is a world leader in the cochlear implant industry. They produce a complex technological product that allows profoundly deaf people to experience hearing. The implant requires intricate surgery and this means Cochlear has to sustain their established trust with both the deaf and the medical community. There are rivals in the industry and the deaf community is divided on the value of the product. Recently, an implant-based scare has attacked the industry. At the time of the case (2003) Cochlear is experiencing share price problems and has had a change in leadership.
Teaching area
This was written as an introduction to case study analysis for students. The analysis is easy and the content is interesting. Deliberately, the socio-cultural and the technological elements are the only problematic parts of the analysis.
Questions
1 What are the best strategies to enhance sales?
2 How can they best cope with the significant social and medical issues facing the industry?
3 Will Cochlear survive into the next 10? 15 years?
Analysis
General environment
Economic
A prosperous OECD is a good cochlear market. Medical insurance programs are challenged for finances, however.
Global
Profound deafness is a global problem. The major market for cochlear implants is Europe and the USA. Asia is increasing as a market.
Political/legal
Implants are closely regulated with (US) FDA approval vital to success of innovations.
Socio-cultural
The global deaf community is divided on the value of cochlear technology, with an important sector devoted to protection of deaf culture and therefore ...