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Starion Entrepreneurship Case Analysis

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M3786 NEW VENTURE PLANNING SAMPLE CASE ANALYSIS REPORT

STARION ENTREPRENEURSHIP SAMPLE CASE ANALYSIS REPORT
Starion Instruments, headquartered in Sunnyvale, CA is a private company with core IP assets based on the exclusive license of groundbreaking medical research in the field of laser tissue welding. Starion hopes to revolutionize the electrosurgical field with the introduction of products like its cautery forceps used for cutting and sealing (cauterizing) tissue. The overall annual market for these types of medical devices is in excess of $1 billion. Furthermore, Starion’s promising IP and continued research goals will enable it to gain a significant foothold in the worldwide medical technology industry with sales reaching …show more content…

However, it is only with repeated use that they gain skill with a given device. Therefore, it is critical that they see not only a cost advantage, but a significant increase in product performance in order for considerable adoption to take place. Starion’s choice to focus on the core buyer requirements magnifies their intimate knowledge of the space and contributed greatly to the company’s overall success. The decision was made to concentrate on an open surgery strategy. Early adoption, particularly for a small fish in a big pond, is critical to any start up. This direction, spearheaded by management, was a deft decision for several reasons. The customer base in this field consists of an end user with a complex hierarchy and buyer process. However, it is ultimately the end user’s decision which makes or breaks a product in this field. Therefore, the decision to launch the product for use in open surgeries as opposed to laparoscopic procedures vastly increased the attractiveness to the early adopter base. The open surgery tool strategy enabled doctors to rely on backwards compatibility (the ability to simply fall back on the tried and true cut and suture method), another key point with “experimental” tools and methods.
Prior to Starion’s laser tissue welding breakthrough, the most common electrosurgical tool was the monopolar device, also known as the Bovie device. With

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