Ecton - Disruptive Technology

1072 Words5 Pages
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
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Also, engineers can be assured of retaining focus to their core product. Arrayed against this are many cons. Firstly, there is no sufficient capital as well as prospects of future funding coming in through VC 's. No expertise in marketing, sales and distribution is another major weakness. Since they have only one product to sell, it involves a substantial amount of risk to take a bet on unexplored markets. Also, it is mentally geared to being taken over, as mentioned in the "Phase III plan" prepared by Cannon for the upcoming year.

2. Go ahead in plans to find a suitable acquirer
A suitable acquirer would be an established player in this segment, having resources and expertise for marketing and production. This would provide Ecton with additional capital to finish development of the product as well as lay the foundation for future innovations. Aligning with an established company would also open the existing market as well as business contacts which can be exploited. One potential risk of being taken over is the possibility of the team engineers being pulled into mainstream operations, which they resent, which was one of the main reasons for them to start a new company.
Recommendations:
Ecton should go ahead with its plans of finding a suitable acquirer. This would give the original investors the greatest return on investment, as well as an acceptable exit strategy. Ecton
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