Pfm Devices - Competitive Initiatives

CASE STUDY

In 2002, Jeff R. Goodman, chief executive officer (CEO) of PFM Devices, Inc. (PFM Devices) launched

his final strategic initiative before his upcoming retirement. PFM Devices, a privately held business,

launched 10 years earlier with venture capital investments, had proved to be a successful investment.

Goodman’s past experience in the medical industry, along with his marketing successes, was instrumental

in gaining market share in a competitive global market for the artificial cartilage industry. Although his

market share in the United States had steady growth over the last two years, Goodman had trouble

extending his product on a global scale. Cultural differences and already established companies in both the

European and Asian markets added to the inability to expand outside of the United States.

Goodman thought the best way to expand globally was to acquire competing companies already

established in areas of growth and market stability. After meeting with the principle investors and gaining

their approval for his new objective, Goodman successfully acquired a smaller competing company in

France and a fast-growing company in Japan that was successfully establishing market share throughout

the Far East. With the completion of both acquisitions near the end of 2002, PFM Devices’ global market

share jumped from 17 per cent to 33 per cent. Consolidated revenues in 2003 were more than $204 million.

Goodman’s