Essay on Ecton Analysis

1497 Words 6 Pages
[Type the company name] | ECTON INC. ANALYSIS | | | | |

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Ecton Inc, an innovator medical imaging firm, is caught in a similar situation that many startup companies face once they are in the final stages of a product development cycle. They must choose between continuing with product rollout, which necessitates substantial capital input to increase the scale of operations, or becoming acquired by a larger organization which already has the resources and competence to ensure production, sales, and distribution for the same product. This report focuses on Ecton’s current market position, examines its future choices, and offers a recommendation in light of the prior analysis. Ecton’s Position: In order to
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It has the advantage of being mobile and half the price of existing low end products, which is quite a reduction. Although Ecton’s echo machine can deliver high quality image as the conventional machine, it offered fewer features and less versatility. With its new machine, Ecton targets the low end market segment and hopes to sell its machines in markets outside traditional cardiology unit, such as professionals in the ICU, outpatient clinics, and developing countries which can be considered niche market since they cannot afford conventional echo machines. Therefore, after considering the aforementioned, Ecton’s new technology is best described as "disruptive technology.” Ecton introduces a very different product from what the average customer valued by positioning itself outside the average customer’s needs while offering a superior price. Ecton’s Choice: In light of the above analysis, the current issue Ecton faces is to choose one of two paths: either they do their own marketing and production, or be acquired by an established firm. When finalizing this decision, Ecton must evaluate whether they have the resources and skills necessary to compete against larger firms who already have existing production and distribution channels even though they will deal with an emerging market product. In order to assist Ecton in their design making process, Ecton will be evaluated along the following criteria of

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