Disruptive Technology- A Heartbeat Away: Ecton.Inc Harvard Case Solution & Analysis

The plan includes the formation of board, the decision to get acquired or pursue own organization,and he pricing strategies to tap the market.It also outlines the need for right marketing and distribution strategies to develop marketawareness that could lead to market development strategies.Under the phase-III plan, the company also aims to raise the equity of 2.5 million in which the establishedinvestorsfrom the market are targeted.

All in all, the Ecton.Inc is in the transition phase to surge the market with innovative technology and to disrupt the heart diagnosis industry in terms of resultsand cost both.However, it is positedto the threat of high competitionwhich may wipe of the company, along with the risk of dilution of company; perspective and strategy due to extensiveboardand the dissolution of culture which both the players have developed whilesetting up the organization.


Porter 5 forces Model

Bargaining power of buyer

The bargaining power of buyer is high in the market,it is due to the availability of various ultrasound equipmentand methods that can replace the scanning technology.In addition, the bargaining power of the buyeris high due to the high intensecompetition in the market by the well-known giant players. In addition, the high consolidated structure of hospital and healthcare industryalso allows the management to bid and quote the pricing that best suits them.

Bargaining Power of the supplier

The bargaining power of the supplier is also very high. It is due to the market monopoly, consolidated structure and high dependence on the distributionchannel to reach the market and prospectiveclients.In addition to this, in hospital industry, the suppliers are limited in terms of dealing, which offers the power to bargain with companies while setting the quotes prices.

Threat of Substitution

The threat of substitution is also very high in the market. Since the Ecton.inc will offer the scanner that performs the heartdiagnosis in a mobile manner, the industry has already prevalent strongtechniques to run these tests through laboratorymethodsandother ultra sound techniques like MRI and CT scans.In addition, the company is greatly held by the strong playerslike HP which hascontinually improved by incorporating the marketing demand, and thus offers astrong substitutionfor Ecton’sproduct line.Lastly, the market of ultrasound is well-establishedwhich again establishes high substitution for the Ecton portable device.

Extent of Rivalry

The extent of rivalry is also very high in the market. The market is well-grippedandequipped by HewlettPackard and Acuson as the suppliers of the Ultrasound machines for lab methods. These two companies along with other giants like Fuji has well covered the market, raising the market’sentry and exit barriers. This has made the entry of the new entrant difficult in the market.

Inaddition to this, the healthcare industry is anoligopoly market, which strengthens andempowerscertainplayers due to the expertiseand long term relationship in the market.Such relationship hinders the entry of the new entrant in themarket.Also, such rivalry makes the small business to leave the market due to strict profit margins and low profitability.

Threat of New Entrant

The threat of new entrant is medium or low in the industry.It is due to high monopolistic market approach along with the high set up cost and market entry cost. In addition, the exit barriers are also very high, which makes it difficult for the small businesses to survive in such industry. Also, due to high set up cots, the small businesses and investors finds the market unattractive. Lastly, such monopolistic industries have few giant business driving the industry forces and setting the competition...........................................

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