ipl-logo

Alcoa Case Study

1686 Words7 Pages

The prosthetic industry is on the verge of a growth phase

In 2012 the prosthetic industry was valued at $15.3 billion and by the year 2017 this industry is estimated to be worth $23.3 billion. According to the Amputee Coalition, almost 185,000 amputations take place in the U.S. every year. About 54% of these are attributed to vascular problems and 45% to accidents, a variety that ensures there will be a constant demand for prosthetics in years to come. The growing age of the baby boomer generation and increased medical care in developing nations has also increased the demand for prosthetics worldwide.

In addition to an aging population, in recent years there has been a noticeable increase in sports injuries. Foot and ankle prosthetics are …show more content…

There is currently a lot of labor-intensive manufacturing and assembly. Furthermore, prosthetic manufacturers have to buy raw materials from suppliers. These factors ultimately raise the price of the final product. Alcoa can solve this problem with additive manufacturing and vertical integration. These will lead to a superior product at a lower cost.

Alcoa must overcome obstacles to enter the market

FDA approval and prosthetic patents discourage smaller players from effectively breaking into the prosthetic market. The FDA must approve new prosthetic limbs before they are sold. This can be a lengthy and expensive process. Additionally, many larger companies patent their prosthetic designs. Because of the existing patents, Alcoa can’t simply begin producing prosthetics. The company will need to conduct research and development to design its own devices before production can …show more content…

Currently resources as simple as an Xbox and 3D printer can create semi-functional plastic prosthetics at a much cheaper costs than the current market rate. Compared to prices upwards of $40,000 for new prosthetics, Alcoa can produce cheap, mass-produced prosthetics at costs around $50. This simplified process will allow the products to be delivered to developing countries in need. Alcoa’s advantages of cheaper material costs and economies of scale will ultimately allow the company to undertake such a campaign.

Alcoa cannot pass up on the opportunity to be a first mover in a growing industry

By 2017, the prosthetics industry is estimated to grow to $23.3 billion. Failing to enter this growing industry could lead to an immense opportunity cost. Alcoa already has the mining operations and raw materials to be a leader within the prosthetics industry. In addition, Alcoa has already made efforts in attempting to incorporate additive manufacturing within its current operations. Alcoa’s current core competences complement their ability to enter this profitable

Show More
Related
516 Words | 3 Pages

Moreover, they could facilitate and expand the Amazon website to include the further commercialization of biomedical device that could benefit the world. If none else, the company offers an opportunity for modern day job experience within a the future of business in the form of

Read More
1067 Words | 5 Pages

Amanda Kitts is a great example “The assembly is topped by a white plastic cup midway up Kitts’s biceps, encircling a stump that is almost all that remains from the arm she lost in a car accident in 2006.” Due to the car accident in 2006, Kitt has an arm with “… flesh-colored plastic…underneath are three motors, a metal frame, and a network of sophisticated electronics.” Although, Kevin wasn’t in a car accident he still uses bionic parts for his legs and arms. “…little Freak showed up one day with these shiny braces strapped to his crooked legs, metal tubes right up to his hips, why those were even more cool than crutches.” This quote directly from “Freak the Mighty” (pg. 12) proves that Freak has similar problems.

Read More
855 Words | 4 Pages

Igor Spetic is a volunteer at the research center in the Louis Stokes Cleveland Veterans Affairs Medical Center. He uses his left hand, which is his own flesh and blood, and his right hand, a plastic metal prosthetic (a consequence of an industrial accident). The prosthetic in his right hand uses the “myoelectric” device which is controlled by flexing his muscles in his right arm. Myoelectric prosthetics serves the purpose of an artificial limb while maintaining the appearance of the limb. Myoelectric prosthetics are different from body-powered prosthetics because body-powered prosthetics uses cables and harnesses strapped to the individual to mechanically and carefully guide the artificial limb through muscle, shoulder, and arm movements.

Read More
963 Words | 4 Pages

Another emerging technology is the 3D printer. The 3D printer allows people to print hearing aids, functioning prosthetic limbs, prosthetics that let people feel everything they touch with it, and replica skulls being created from patients CT

Read More
256 Words | 2 Pages

Evolution - the gradual adapting and changing process that humans go through. Looking back from the past, now in the present, and into the future it is easy to see the we as humans have always and always will feel the need to adapt to our surrounding in order to survive. It is apart of what makes us human. In Juan Enriquez presentation over “What humans will look like in the next 100 year,” he explains this need for advancement through the use of prosthetics; saying that to some people they are a need, but with certain advancements they are becoming more of a want. The human race feels the push to advance in order to survive thus pushing us to view prosthetics as a way to change fundamental aspects of humanity.

Read More
643 Words | 3 Pages

As 3D printing in the medical field is still evolving, it is unsure the long term effects. Unable to see the possible detrimental effects of artificial cells, organs, and tissues can be very dangerous. In the same way that the technology in the “Happylife home” was ultimately a fatal detriment to the Hadley family. As research proceeds more information is sure to emerge about the future of 3D printing in the medical

Read More
1149 Words | 5 Pages

needs to develop a product development strategy in its marketing and growth initiatives. First, we need to determine our market size. We know that only 3,000 hospitals in U.S perform the type of cardiovascular surgery which could use a endarterectomy oscillator. While, we don’t have any competition right now, we can assume that 10% of this market will be the “innovators” or the earliest adopters of this technology (Appendix B). Therefore, 300 hospitals are likely to take the plunge and purchase an endarterectomy oscillator.

Read More
337 Words | 2 Pages

Introduction: In the climate of ongoing financial austerity, especially within the United Kingdom National Health Service, many decisions regarding orthopaedic prosthesis use are driven by value for money. This often equates to which supplier can offer the cheapest deal. The impact of changing prosthesis, and it’s resultant inevitable surgical learning curve, on initial patient outcomes and complication rates is not known.

Read More
723 Words | 3 Pages

The “budding influence of the turn-of-the-19th-century feminism” resonates throughout the novel. Victorian society’s rigid boundaries and high principles suppressed the value of women and forced upon them expectations to follow. The socially correct portrayal of women were to be innocent, pure, and submissive and ascribe to men. Women who had subdued their expression of sexual desire were commended, and society scorned the promiscuous and flirtatious women. Sex was as a taboo topic and was only brought up for means of procreation.

Read More
768 Words | 4 Pages

The rise in 3D printing and availability of open sourced products from MakerBot Industries has given consumers access to technology previously only held by professionals. MakerBot Industries launched in 2009 and has continued to provide its customers with open sourced, nonproprietary consumables at a low cost. As a result, MakerBot became widely used and supported by do-it-yourselfers. The company quickly established itself as the leader of personal 3D printing and became known for its unique open source design. However, competition from large manufacturers targeting the industrial/professional world greatly threatened MakerBot because of their extensive resource that targeted MakerBot’s customer base.

Read More
932 Words | 4 Pages

A number of multinational corporations that have already set base in the country have cited several benefits resulting from doing business in the country. This paper is, therefore, written with the objective of reviewing the various reasons why U.S companies should invest in South Africa in their bid to enter the African continent. Reasons Why United States Companies should Invest in South Africa

Read More
1181 Words | 5 Pages

But wait there 's one more, the Cosmetic prostheses do not improve function, but are used to improve a person 's appearance after the loss of a body part. These include ocular prostheses -- artificial eyes -- and silicone hands, fingers, feet and toes. People with prosthetic legs can often climb stairs, walk, swim, and run as if h they were using natural limbs, while prosthetic arms and hands have advanced to the point where they give the individual control of all five fingers. If this is what scientists and doctors have accomplished in the past 50 years, it is difficult to imagine how much technology will improve within the

Read More
1387 Words | 6 Pages

You have lost your right arm. You have no legs. The prosthetic surgeon informs you that you’ll need sixty-thousand dollars if you

Read More
720 Words | 3 Pages

A company needs to go through extensive regulatory approval, licensing, high financial backing and investment, an effective distribution network, brand patents and strong brand presence make it a difficult industry to enter or exit. This is why the threat of a new entrant is low to moderate to existing companies. Based on factors mentioned above. But now many pharmaceutical companies are progressing in the market by shifting from traditional business approach to emerging new business approach. The new business technique includes contract research (drug discovery and clinical trials), contract manufacturing and co-marketing alliance.

Read More
1103 Words | 5 Pages

Environmental material such as sand, dust, and dirt can exacerbate skin in contact with the prosthetic and impeded the functionality of the individual. Specifically, for people with lower extremity amputations, some physical demanding jobs that require repeated climbing, pushing, and walking should be evaluated and altered as necessary. Consideration for the increased energy required to manipulate a prosthetic device may also be considered as part of the physical demands of the vocation. One final vocational consideration, that is also psychosocial, is that individuals with upper extremity amputations may have a greater need to consider the cosmetics of the prosthetic. Nevertheless, the specific tasks required of the job (e.g., heavy lifting) must also be considered (Falvo & Holland,

Read More

More about Alcoa Case Study

Related Topics

Open Document