RESOTECH, Inc.                Team Brazil

STMS 31204 - Competitive Strategy                Sevdalina PANOVA                

Prof. Olivier FOURCADET                Saskia DHEEDENE

Resotech Case Analysis – Executive Summary

In this executive summary, we examine Resotech’s competitive position and industry dynamics by conducting a concise SWOT and industry analysis using Porter’s 5 forces, respectively. We also outline the leading forces of the diamond structure - arena, value proposition, steps and vehicles, and evaluation. Next, we look at the possible strategies available to Resotech. Having considered pros and cons of each strategy, we recommend a possible course of action for the company in the future.

SWOT Analysis for Resotech, Inc. Co.

Strengths: cutting edge technology, high performance quality, enhanced value proposition to customer hospitals due to improvement in clinical practices – a high social role, excellent network in top universities and companies to contract first-rate scientists and management, strong team morale and commitment, company reputation and brand image, focused R&D on innovation and highly-reliable equipment, credibility and integrity of managing leaders.

Weaknesses: very capital intensive and difficult to generate start-up funds for revolutionary projects with unknown lead time, high sunk costs for installation equipment, low cash flows, low service revenue fees (gratis in the beginning), lack of minimum required bureaucracy, small dedicated teams can only work on 1 project at a time.

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Opportunities: improvement in the image quality and time with each new product coming on the market, growth of MRI market as a proportion of the medical imaging industry (from 15.8% to 20% in 6 years), contracts for servicing the equipment can generate new revenue streams, enter the mobile sector with a new strategy, a high end product has a higher profitability potential.

Threats: need for FDA approval for launch, intensive and expensive testing required, low service fees, hospital cost cutting initiatives modifies demand for MRI towards the lower end segment, a switch in strategy for lower end products suggests strategy, team and ...

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