Ecton Inc. Case Analysis

1579 Words4 Pages

a. Explain the technology or innovation introduced in the cases.

Cannon knew that his compact echo machine, which he carried under his arm by a single handle, would have to perform competitively in a room filled

with state-of-the-art echo machines made by long-standing competitors such as Hewlett Packard -- each machine weighing more than the average NFL

linesman and costing nearly a quarter of a million dollars. To view the functioning of the heart, the face of the transducer, which was usually no larger

than 9 square centimeters, was placed on the patient's chest at various angles. The transducer delivered ultrasound waves into the body and these

waves were reflected back to the transducer as they crossed interfaces of different acoustic impedance. More simply, the ultrasound bounced off the

internal structures of the body and returned to the transducer. The transducer converted the returning sound into electronic signals that were processed

by the internal computers of the instrument, to create an image of internal body tissues. These images were then displayed on the screen for the user,

and videotaped for storage and line analysis.

b. Would demanding customers consider the innovation's performance to be inadequate?

But he worried about how he might penetrate a market that seemed to have been held so tightly for so long by capable, entrenched competitors - and

about what mix of product features and services might appeal to the customers he needed to target. Often, the need to move the instrument and a tech

to other locations in the hospital could be disruptive to patient flow through the cardiology department's echo lab. Other areas in the hospital in which echocardiography equipment might be used...

... middle of paper ...

...markets. This was accomplished by focusing on design and engineering. However, without strong sales, marketing and production resources, the company will not be able to secure these alternative markets. Since the product is nearly completed, Ecton should stay with their original plan. This would allow Ecton to take advantage of their position as the first to market when negotiating with a potential buyer. By selling the business now, Ecton could avoid the necessity of giving up additional equity to secure additional funding. This would give the original investors (which include the founders) the greatest return on their investment. Michael Cannon has already developed an exit strategy in his Phase III plan. This plan should be followed through. Since Ecton is close to perfecting their product the time is right to make the best deal possible for an acquisition.

More about Ecton Inc. Case Analysis

Open Document