Augustine Medical, Inc.

1961 Words Apr 7th, 2005 8 Pages
Introduction ( Background and Situation)
Augustine Medical, Inc. was founded by Dr. Scott Augustine, an anesthesiologist from Minnesota, in 1987. The company was created to develop and market products for hospital operating rooms and postoperative recovery rooms. The company provides innovative solutions to combat postoperative conditions such as hypothermia. Medical research indicates that 60 to 80 percent of all postoperative recovery room patients are clinically hypothermic. Hypothermia is caused by a patient 's exposure to cold operating room temperatures that are required by surgeons to control infection, and for the personal comfort of the surgeon. Hypothermia can also be a result of heat loss due to evaporation of the fluids
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By charging a high price initially the company can build high quality image for its products. Charging high prices will give Augustine Medical the option of lowering its prices when heavy competition arrives. This strategy would also be advantageous to the company upon its initial entry to the market because it will allow the company to regain profit margins from the funds paid to distributors and other intermediaries.
This strategy will eliminate the risk of discounting and losing potential profits because the product will be marked up initially and "discounted" upon the arrival of competition and the growth stage of the products life cycle. Because prices of competitive products are priced high, using a skimming strategy will not pose a threat instead could prove to be more advantageous in the long run.

SWOT Analysis

Strengths

• Simplicity of use
• Compatibility with existing systems
• Bair Hugger stops warms patience faster
• Patented plastic cover
• Bair Hugger has 15 year life span
• Heater/blower unit is subcontracted to cut cost
• Water free heating alternative to avoid leakage and burns caused by traditional products
• Prevents cross-contamination
• Patients are not required to move or adjust in anyway to use device
• Free Trial of product for 2 weeks

Weaknesses

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