Case Analysis: Disruptive Technology a Heartbeat Away: Ecton, Inc.
Case Evaluation
Ecton is going to position the company to be acquired but the board of directors and clinical advisors has some concerns about the ramifications of that plan. This paper evaluates Cannon’s Phase III Plan on March 1998. Cannon proposed a path for the next year containing five major points (Edward, 1999, 8 and 9). The bottom line of this proposal is positioning Ecton to be acquired by the end of the 1998. One of the crucial concerns of this acquisition is the possible effects on “Ecton’s product development process”. Another concern Cannon holds is the ability of Ecton to penetrate a very harsh market fills with big, established, and advanced manufacturers. Also, Cannon is not sure on how to approach specific market segments, such as ICUs in hospitals. Moreover, the absence of marking, sales, and production departments adds a burden on Ecton when it comes to negotiate its acquisition. All of these concerns and more will be discussed in the next few pages.
Acquisition: Pros
The idea of being acquired has pros and cons. starting from the pros first will help to understand some reasons behind this particular decision. The first advantage for Ecton to be acquired is the great chance to survive and to be away from a very tough-to-penetrate market. To have a clear picture for the market situation in 1996, the market share for Hewlett Packard exceeds 60% of the major cardiac ultrasound manufacturing, which equals to $ 470.4 million. Furthermore, Ecton will be having an ultimate chance to overcome barriers to entry in Echocardiography. In other word, after acquisition, Ecton’s product is expected to be presented in conferences and seminars hold by prestigious cardiac institutes and organizations, such as American Heart Association. That is because the presence of the giant major cardiac ultrasound manufacturing names which is associated with the respected cardiac institutes and organizations. In this way, the need to breakdown the cardiologists’ lobby
Ecton is going to position the company to be acquired but the board of directors and clinical advisors has some concerns about the ramifications of that plan. This paper evaluates Cannon’s Phase III Plan on March 1998. Cannon proposed a path for the next year containing five major points (Edward, 1999, 8 and 9). The bottom line of this proposal is positioning Ecton to be acquired by the end of the 1998. One of the crucial concerns of this acquisition is the possible effects on “Ecton’s product development process”. Another concern Cannon holds is the ability of Ecton to penetrate a very harsh market fills with big, established, and advanced manufacturers. Also, Cannon is not sure on how to approach specific market segments, such as ICUs in hospitals. Moreover, the absence of marking, sales, and production departments adds a burden on Ecton when it comes to negotiate its acquisition. All of these concerns and more will be discussed in the next few pages.
Acquisition: Pros
The idea of being acquired has pros and cons. starting from the pros first will help to understand some reasons behind this particular decision. The first advantage for Ecton to be acquired is the great chance to survive and to be away from a very tough-to-penetrate market. To have a clear picture for the market situation in 1996, the market share for Hewlett Packard exceeds 60% of the major cardiac ultrasound manufacturing, which equals to $ 470.4 million. Furthermore, Ecton will be having an ultimate chance to overcome barriers to entry in Echocardiography. In other word, after acquisition, Ecton’s product is expected to be presented in conferences and seminars hold by prestigious cardiac institutes and organizations, such as American Heart Association. That is because the presence of the giant major cardiac ultrasound manufacturing names which is associated with the respected cardiac institutes and organizations. In this way, the need to breakdown the cardiologists’ lobby