Ecton - Disruptive Technology

Topics: Strategic management, Disruptive technology, Innovation Pages: 3 (1059 words) Published: October 14, 2007
Ecton Inc, as an innovator in the field of medical imaging is caught in a familiar dilemma that many startup companies face once they are in the final stages of a product development cycle- whether to continue with product rollout, forcing a change in the scale of operations requiring substantial capital input, OR, to get acquired by a larger organization which has the expertise and resources to ensure production, sales and distribution for the same product. In this essay, we will discuss Ecton's proposed business model, why Ecton qualifies as a disruptive innovator, and analyse and recommend alternatives that it can take to chart out its future Ecton – A brief SWOT Analysis

Ecton has diverse strengths to its credit. Integrating a team of engineers from ATL and Interspec to design a compact ultrasound device with a price at half the lowest competitor reflects the strong technical and product development skills of Ecton's team. Demand drivers such as escalating health costs and migration of patients from expensive hospitals to out-patient facilities are potential market hubs for Ecton. However, problems in acquiring funding from VC's impact its abilities to position itself as a niche player in the imaging market. Also in the way of growth are the powerful barriers to entry, such as overcoming customer brand loyalties and the consolidation of suppliers. Ecton- Positioning Strategy

In order to combat the massive presence of HP and Acuson in the imaging market, Ecton has to look out for "Asymmetries of motivation"1 and position its Doppler Echocardiography device as "a screening and monitoring tool, instead of merely an expensive diagnostic laboratory method", as mentioned in its original business plan. Ecton has rightly concluded that it cannot win the battle on HP's grounds; hence it has to shift the goalposts. Having developed a product having a very different feature mix than established competitors, it has to look outside the typical market. Alternative...
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