Case 4: O.R. Solutions Reaches a Cross Roads

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Topics: Surgery
Essay title: Case 4: O.R. Solutions Reaches A Cross Roads

To improve efficiency and quality in health care in minimally invasive surgery (MIS) was Jack Ferguson’s vision. The Minimally Invasive Surgery market had numerous devices that specialized in bloodless surgery and devices were made by different manufacturers. Key issues with the devices were: the unreachable or unreliable foot pedal, heat failure, insulation failure and minimal visibility. The University Research Foundation contacted Tom Marshall for ideas to close the loop in the MIS device, so Tom created one unit surgical control system, for better safety care, efficiency and quality care.
Key Issue
Tom invested $2.5 million of his money and Jack helped to raise an additional $2 million for the project. Both individuals were extremely optimistic regarding the devices and forecasted millions in return revenue. The company’s projected sale of units was high in comparison to actual sales, the projected sales were overstated by a few hundred. Internally, to increase sales Jack searched for a strategic distribution firm to boost sales. Tom preferred to keep it in-house to have more control. O.R. Solutions received FDA approval in 2005. The team thought they had a strategic and optimistic plan and was ready to sell their product.
Business Plan
In 2005 to 2009 the projected sales were 3460 units and actual sales were 292 units with minimal net income. The team had to create a strong sales force, target hospitals and increase partnership. Surgeons were extremely impressed with surgical devices but final sale and word will come from the Administrators. Internally, the company cut budgets and good employees moved on. O.R. Solutions last resort was to bring in a marketing research team. They were at a crossroad; should they sell their business, trained sales force, hire new sales & marketing staff or partnership strategy.

Strengths: Weakness:
Non-existing Competitors Non-existing

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