Evaluating the alternatives:

1. Continue ignoring bioresorbables: In early 80s, after the launch of 1 st

generation of bioresorbables, its market feedback was not positive both in
terms of cost effectiveness and failure in healing. After the launch of 2 nd
generation also, it has some flaws, so Synthes could continue focussing on
metallic implants. This will increase its market share by few percentage
points, as market for this already full of competitors. But once the
improved version of bioresorbables is introduced, and then Synthes will
lose its market leadership, as the new bioresorbables will be adopted in
the market. Then, the only option remaining with Synthes would be to use
its strong marketing and sales force to distribute the improved
bioresorbables, developed and manufactured by others. This will push
Synthes at a much lower position in the new market.
2. Wait and watch approach: The core competency of Synthes is its
innovation capability and sales and distribution network. In this approach,
developing new line of products on the existing set of characteristics of
bioresorbables will only incur irrecoverable expenses with no output. The
gestation period for copying a product is very less in this scenario, so
within no time many competitors will come with similar product in the
market. Also, Synthes, as a trustworthy brand will lose its lacklustre, as
other competitors will grab this opportunity.
3. Develop and market the new line developed on current value
proposition: This solution speaks of marketing the product also, apart
from development. But, it is quite evident from the case that, in the
current state bioresorbables has high probability of failure, so building
product on these values will lead to negative market feedback of Synthes.
And, once this happens, other players will learn from these mistakes and
brings out a more flawless product, by that time Synthes would have
already lost its major market credibility.
4. Bring out the 3rd generation of bioresorbables: In any industry,
whenever a superior technology supersedes the existing technology, it
becomes very important for any company that at what stage it enters the
market. In this case bioresorbables will be pulled by market in the future,
and if Synthes doesnt come up with the 3 rd generation products, then
some other competitor will develop that and make the existing technology
obsolete. So, this is the best time to develop the 3 rd generation
bioresorbables and use its competency of sales and marketing to push the
product in market in stages. By implementing it in stages, a controlled
market trial and feedback can be taken. With its strong network with
surgeon, they are quiet capable of this, thus will lead to significant
improvements, acceptable to market.