Without getting too much into the mathematics in the economics of understanding flexibility, options, and even uncertainty, let's briefly discuss Medtronic's market flexibility.
Over the past decade, innovations into the medical device sector have led to greater financial flexibility for Medtronic. It is important to note that the uncertainty indubitably lies within future business acquisitions and market fluctuations; predictive analytics only so much in terms of economic upside AND downside.
In times of manufacturing uncertainty, Medtronic had to reshuffle internal efforts. In addition, the customer was effectively left hanging in a key market for Medtronic. This opening allowed for competition to command a key sector of the medical device market. However, Medtronic's continued efforts to push the limits of technology to ensure top shelf products for its customers.
One type of flexibility employed by Medtronic is the option to expand. Medtronic operates in the cardiac space. Medtronic created stents, which allowed them to expand further into the cardiac space with more expansion products like balloons and catheters.
There is inherent risk in ALL endeavors. What makes Medtronic successful is its ability to use previous customer data, manufacturing data, and financial reports to make sound decisions in the now and for the future.
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