Cochlear Limited History

http://www.cochlear.com/files/assets/timelin e.swf

Cochlear Limited first mover benefit

Cochlear was first to receive:
US Food and Drug Administration approval for cochlear implants for adults US Food and Drug Administration approval for cochlear implants in children Approval for use in Japan Undertake Auditory Brainstem Implant Surgery Offer a multi-channel BTE speech processor Develop a non-invasive test of neural response at up to 22 separate sites within the cochlear US Food and Drug Administration approval for infants at 12 months Develop an implant with a self-curling, 22 channel perimodiolar electrode array

Strategic capabilities
Sources: company annual reports, investor reports

Major Company Economics

Skills, Products & Expertise

Organizational services, Strategic locations & Human Resource

Skills & Culture: R&D, Innovation, Brand recognition, onsite manufacturing benefit, work diversity with 60+ ethnic groups only in Sydney office. 35% of senior executives and 48% of employees are females. Products: The Cochlear Nucleus range of cochlear implant systems, the Cochlear Baha range of bone conduction systems and the Cochlear Hybrid electro-acoustic hearing solution. Expertise: Cochlear academy, Green fever, green house gas emissions, 950+ registered patents, Nucleus CI422 cochlear implant with Slim Straight electrode, the thinnest full length electrode on the market, community support programme.

Offices: Headquarters are based in Sydney, Australia, and offices in Melbourne, Hong Kong, Beijing, Belgium, Tokyo, Basel, Hanover and Denver Number of employees: 2500+ employees in 25 countries in which 500 qualified engineers. Manufacturing: Two products in Australia, one in Sweden Services: Life time care and support for Cochlear services Staff: 350 specialised R& D scientists (Australia, Sweden, Belgium & USA) Collaboration: 100 External research partners in 20 Countries Quality: World wide QA system which complies with all regulatory requirements.

Cochlear limited

Market Share: 65% EBITDA Margin: 30.73 % Sales:23087 Units (2012) Total Revenue: $779.0 m (2012) R&D Investment: $119.3m (15.3% of ttl revenue)

Cochlear Limited Competitive Advantage

Global market leader in implantable hearing technology. Has a reputation of delivering the most reliable and safest implantable devices, despite voluntarily recalling one of their own products in September 2011. Maintains strong brand awareness with healthcare professionals and hearing specialists. Invest about 13% of revenue each year on technological innovation in order to stay ahead of the competition. Enjoys a strong international distribution base for their products. Building the business to handle more growth by investing in marketing and sales resources. Reports significant unmet clinical need for their products due to growth from emerging markets.

Cochlear Limited Strategy Analysis

Strategy is to maintain its market position as the clear leader in implantable hearing technology. COH has a reputation of delivering the most reliable and safest implantable device provides strong brand awareness with hearing specialists. To build on this credibility and its international distribution base to develop product awareness about the Baha device to the larger hearing impaired market. Less than 10% of the profoundly deaf have an implantable hearing device, management expect they can exploit the immaturity of the global market. COH is investing in research to redesign devices to enable manufacturing scale-up from a cottage industry to a production line. Management is also building the infrastructure to handle more revenue by investing in marketing and sales resources.

Cochlear Limited Strategy Analysis

Cochlear reported NPAT of $77.67m for the half-year ended 31 December 2012. Revenues from ordinary activities were $391.7m, up 1% from the same period last year. Sales, excluding FX contracts, were $368.2m, up 5%. In constant currency (that is restating H1 F12 at H1 F13 FX rates), H1 F13 sales were up 9%. Diluted EPS was 136.1 cents compared to (35.8) cents last year. Net operating cash flow was $28.52m compared to $67.37m last year. The interim dividend declared was 125 cents compared with 120 cents last year. Net debt was $72.5m at 31 December 2012. At 31 December, the unused portion of the facility was $60.3m (June 2012, $128.0m).
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%)

2014 2013 2012

183.9 152.4 158.1

314.9 261.0 278.9

20.6 -6.4 -11.7

20.8 25.1 22.0

249.0 215.0 245.0

3.8 3.3 4.0

Franking (%) 50.0 50.0 18.0

Cochlear Limited Strategy Analysis

Competition, Threat of new competition, Price competitiveness, change in consumer taste, economic factors

STEEPLE /PESTEL

 http://www.cochlear.com/files/investors/AnnualReport2008/ed17_rdo.htm http://wps.pearsoned.co.uk/ema_uk_he_johnson_excorpstrat_7/26/6677/17094 03.cw/index.html http://www.cochlear.com/files/assets/timeline.swf http://www.emeraldinsight.com.simsrad.net.ocs.mq.edu.au/search.htm?ct=all&s t1=Strategic+capabilities+which+lead+to+management+consulting+success+in+A ustralia&fd1=all&mm1=all&bl2=and&st2=&fd2=all&mm2=all&bl3=and&st3=&fd3 =all&mm3=all&ys=all&ye=all&ec=0&ec=1&bf=0&bf=1&search=Search&cd=ac http://www.docstoc.com/docs/54867818/Cochlear-Limited-%28COH%29--Financial-and-Strategic-SWOT-Analysis-Review http://www.cochlear.com/wps/wcm/connect/intl/about/investor/annual-reports