This brings be back to Wright Medical's decision to sell off its hip and knee division to Microport. The decision was based on Wright's operative decision to shift away from hip and knee and create a focused line of products to gain a larger market share of the foot and ankle industry.
I think the focus allows Wright to streamline costs in R&D and production of raw materials, which trickles down to training focus of its customers and sales and marketing efforts. In an industry where technology is marginally different, I think the focus on reducing costs by making business decisions such as this is imperative to market growth. Everyone can make a hammertoe screw, so how can we do it better than the competition? I think it's more important to focus on areas of high growth, not necessarily of reducing a higher cost. Efficiency is one thing, but you still have to provide products of high quality differentiation over your competitors. That quality could pertain to the product itself, or even the logistical process of delivering product to your customers.
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