Chapter 7 Problem 2PQ Examine Newland's strategy in light of the special circumstances in its industry....

Chapter 7 Problem 2PQ

Examine Newland's strategy in light of the special circumstances in its industry. How do you recommend the company proceed?

Expert Solution

Newland strategy was to sell her product: the SRS. The target customer was the urologist and the medical centers. The main competitors were “those who had a leading market share in basket retrieval and ureteral stent devices”, but she develops the assumption that “every stent competitor can be a distributor” for her product. The main point was to offer an efficient product which cost less than the actual equipment to remove kidney stones. So she wants to enter the market with a disruptive innovation (same result but at a lower price) which permit to every hospital to have access to medical solution to remove kidney stone.

If we consider the theory of Moore about crossing the chasm (applicable for disruptive innovation), we can argue that Sarah foster catch one early adopter because Boston-based Taylor Medical Supply agreed to test SRS in few of their major market in USA. But Moore argue that to cross the chasm and go to the mainstream market you have to find micro-niche market.

So my recommendation for moving company forward will be:

- Find niche market on the mainstream one: market segmentation

- In each niche market find big influencer that can market your product (such as well know urologist) and influence the other potential customer

- Build a strategy to become leader in each niche market.

keosha answered 1 month ago

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