Free Essay

Successful Global Firms

In: Business and Management

Submitted By dtj1107
Words 1387
Pages 6
International Business Section 8457
Professor: Dr. Bennett
Very Successful Global Firm
August 24, 2015

Fresenius Medical Care is a company that manufactures dialysis machines and products for chronic kidney disease patients. This company is recognized for their innovative technology that has taken over the world. This is why Fresenius Medical Care is a successful global firm. Fresenius Medical Care was started in Frankfurt, Germany by Hirsch Pharmacy, which was owned by the Fresenius family (fresenisumedicalcare.com). This family found innovative ways to turn their small pharmacy into a worldwide business. According to the company’s website, the Fresenius family started marketing dialysis machines to gain substantial marking shares. Once they started manufacturing dialysis machines and products this Germany based company took the world by storm. Fresenius Medical Care, is now the world’s leading provider of products and services for people with chronic kidney disease. Fresenius Medical Care has been around for hundreds of years according to history page of the company. In the 1960’s this company discovered that they had an invention that was needed around the world to help preserve the quality of life. This is when Fresenius Medical Care started focusing on sustainable growth so they could improve the quality of life for their patients with kidney disease. They would do that by continuing to offer innovative products and treatment concepts of the highest quality to their patients. While Fresenius Medical Care continue to improve their innovative technology to sustain the quality of life, they decided to go global in 1996. They merged Fresenius USA, Inc. with National Medical Cares North American forming FMCNA. Once the merge happen Fresenius Medical Care shares started trading in the Frankfurt market as well as in the New York Stock Exchange (fresenisumedicalcare.com). Now with their dialysis products being recognized in North America, Fresenius Medical Care came up with a marketing strategy to keep their shares profitable. The company made this statement: “We are creating a future worth living. For dialysis patients. Worldwide. Everyday” (fresenisumedicalcare.com). This statement became the core of their marketing strategy. According to the Fresenius Medical Care company strategy plan, by keeping this statement at the core of their marketing strategy, they had their marketing team develop four pillars to keep the company focus on their core.
The first pillar that was developed was to keep the company growing continuously and expanding their global presence. The company plan on doing this by committing to actively shape and develop the industry while benefiting from global growth (fresenisumedicalcare.com). Currently Fresenius Medical Care has three headquarter around the world. They have a headquarters in Germany, North America and the Asian Pacific. By expanding their global presence they are now the largest company in the world currently providing dialysis services and products to chronic kidney failure patients. The second pillar that was developed was to tap into new business areas. The company plan on doing this by focusing on caring for dialysis patients and dialysis-related treatments that will sustain the life of their patients. The Fresenius Medical Care website states: “thanks to their integrated healthcare approach, they can tap into new business areas and meet the growing demand for comprehensive care of patients with chronic kidney disease” (fresenisumedicalcare.com). With this growing demand Fresenius Medical Care was currently able to offer an increasing number of additional services to their patients in many different regions of the world. The third pillar that was developed was enhancing their products and treatments. The company plan on doing this by continuing to develop innovative products that will improve the dialysis treatments. The Company states: “the quality Fresenius Medical Care and safety of their products and services is given top priority at their company” (fresenisumedicalcare.com). Fresenius Medical Care currently has a panel of doctors, chemist, and engineers to help them develop the highest quality of products for their patients. The last pillar that was developed was fostering operational excellence and flexibility. According to the company website they plan on doing this by placing importance on enhancing their profitability in the long term. They “aim to modernize their administrative structures and processes so they can rise to the demand of the changes in the market” (fresenisumedicalcare.com). While Fresenius Medical Care core business is dialysis treatment and products, they currently maintain a network of medical services related to pharmacy, vascular, cardiovascular, and urgent care just to name a few. However, just like any other company this company has faced challenges as well as success so that they can stay competitive in the global market.
One of the challenges that Fresenius Medical Care faces within the global market is “reimbursement pressure, which are particularly in the U.S. dialysis market, according to analyst Michael Waterhouse, but Fresenius Medical Care dialysis operations, think healthy commercial insurance rates, globally diversified portfolio of dialysis clinics, and improving operating efficiency can sustain somewhat stable profitability for their segment. Approximately 30% of Fresenius Medical Care revenue is from Medicare, which should face very slow payment growth over the near future” (Waterhouse). Even though the U.S. market is faced with reimbursement pressures, these same challenges are minor in Fresenius Medical Care Germany-based market. The next challenge that they face is the complexity of manufacturing their liquid-based products in the U.S. market. This company has not been exempt to the regulatory concerns raised by the Food & Drug Administration (Waterhouse). But theses regulatory issues appear to be unimportant for the time being, but management will need to maintain a close watch over the manufacturing and quality control processes of their products.
Although this company is faced with obstacles they have also gained success by launching new products, but Fresenius Medical Care is successful for many reasons. On the company website it states the reason for the company’s success is that they “have a highly motivated and experienced global staff, which has an average of 20 years of service with the company or its predecessors. Through the years, their company has taken a complex medical process and turned it into a safe, life-sustaining procedure. At the same time, they have become very efficient with the manufacturing processes and quality management systems” (fresenisumedicalcare.com). This is why this company’s success has not just been in innovative technology, but it is also in patient population. “At the end of 2011, approximately 2.2 million patients were being treated with dialysis. Approximately 27% of dialysis patients were treated in the U.S., 20% in Europe, 10% in Latin America, and 38% in Asia Pacific and they “estimate that by 2020, there will be nearly 4 million patients who need dialysis – this means nearly twice as many patients will need dialysis in 2020 as today. Globally, the number of patients who require dialysis continues to increase by 5% to 6% per year, since the leading causes of kidney failure is increasing among the different populations” (Lipps).
Overall this company has driven the global market and they continue to contribute this to the dedication and superior work ethic of their talented employees. Their employees are united in their commitment to provide high quality products and services and bringing the finest sustainable medical and professional practices to their patient care (fresenisumedicalcare.com). Fresenius Medical Care continues to achieve prime sustainable clinical, quality and technological standards in patient care through their commitment to develop innovative products and therapies (Lipps). This company has reserved its global leadership position and will continue to do so by shaping the future of the dialysis industry. In fact, they will continue to focus on superior quality in both their products and services. By expanding their clinic network, product selection and adding new innovative services (Lipps). Since this company is financially successful, this will help fund the growth of the company in the near future.

Work Cited
“Fresenius Medical Care.” History. About us History, 2015 Web. 23, August 2015. http://freseniusmedicalcare.com/en/home/history/about-us/ “Fresenius Medical Care.” Strategy. At a Glance into Strategy, 2015 Web. 23 August 2015. http://freseniusmedicalcare.cm/en/home/invest/at-a-glance/. Lipps, Dr. Ben. “Fresenius Medical Care.” Annual General Meeting. Speech to Shareholders, 2012. Web. 25 August 2015. http://freseniusmedicalcare.com/fileadmin/data/de/pdf/Annual-General-Meeting/2012/. Waterhouse, Michael. “Morningstar.” Fresenius Continue to Assemble an Attractive Global Health-Care Company. Analysis Report, 2015. Web. 27 August 2015.
http://analysisreport.moringstar.com.…...

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