Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0033

Year : 2004

Industry : Health Care

Region : USA

Teaching Note:Available

Structured Assignment :Available

Abstract: First-mover advantage in a virgin market is crucial for a pharmaceutical company as it invests billions of dollars on research. Introducing a new product first would result in a quicker financial break-even and even profit for the company. Stent, a medical device that obviated open-heart surgeries, turned out to be one of the hottest products for the pharma and medical device companies in the US.

Though Johnson & Johnson pioneered the stent market and dominated it, the company lost its lead to other players such as Guidant, Medtronic and Boston Scientific. Just when the industry was on the point of oblivion, Johnson & Johnson came back with 'cypher' in 2003 - a drug-coated stent.

It instantly became a leader, surpassing Boston Scientific and other players. In record time, Boston Scientific responded with its own drug-coated stent, 'taxus' in March 2004 and displaced Johnson & Johnson from its leading position.