Mediquip Case Essay

Decent Essays

Mediquip S.A., a medical technologies company based in Europe, specializes in the sales of CT Scanners. Within the market, they are at a disadvantage because many of their competitors have been there longer and know the decision-makers better. Another difficulty for Mediquip S.A. is the relatively small market for CT Scanners which in Europe is about 200 units per year. The case study outlines the sales process between Mediquip S.A. and Lohmann University Hospital. When working with other public sector organizations, which make up a majority of Mediquip S.A.’s customers, there are normally at least four major decision-making groups involved. These include: the radiologists who work
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This inability to significantly drop the price and not making it contingent on an immediate purchase led to the loss of the sale.

Alternative Solutions:
Rather than charge as much as they did, Mediquip should have effectively acted upon the competitive advantage they had by either lowering their costs to that of their competitors or undercutting their competitors in price. Being that Mediquip is in a market that only allows for 200 purchases a year, the company would be able to dominate the market if they would still offer their competitive advantage while undercutting their competition in price. Doing this would allow for Mediquip to charge for the upgrades in technology for each system that the buyers will be willing to pay (or look over while making the initial purchase) because of the benefits of the initial purchase relative to their competition.

Issue Statement: (Return on Investment Information)
When speaking about money, Thaldorf simply focused on price and did not spend any time talking about or effort researching when the company would break-even and begin making a return on its investment.

Analysis of Problem:
In the various conversations between Thaldorf and the hospital over the price of the CT scanner, there was only a focus on the price and attempting to rationalize why it was so much higher than the competitions. The sales engineer did not adhere to the fact that money
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