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 …show more content…
While he presented the benefits (albeit ambiguously) of choosing Mediquip’s machine because it was more advanced than the competition, Thaldorf did not speak on the monetary benefits of owning one of the companies CT scanners. This inability to present benefits in a realm other than technology to a hospital that was focused on pricing led to the failed sale.
One aspect of the deal that could have substantially increased the chances of success is a focus on the money the hospital could have eventually made by purchasing Mediquip’s CT scanner. As mentioned by sales engineer Thaldorf, Mediquip’s scanner can produce results at a fast speed, which means that more scans can be administered. The hospital being sold to knows nothing about the profitability of CT scanners since they have never had one so the sales engineer should have explained to the hospital how much they could make off of every CT scan, how long it would take them to break even on the purchase, and how much profit they could make annually. Since money clearly played a large role in the decision-making process, this information would have helped Mediquip see the scanner. Because the Mediquip scanner is faster than the others, it can yield results quicker, administer more exams, and generate more profit than that of the other companies.
Hypothetical of what should have been presented:
Using a modern conversion rate of $1 being €.76, then the