OPPapers.com Essay Index >> Business >> Mr
We have many free term papers and essays on Mr. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.
Mr. Executive summary By early 1988, Augustine Medical executives were actively
engaged in finalizing and marketing the program for the patient warming system ...
... Executive summary By early 1988, Augustine Medical executives were actively engaged
in finalizing and marketing the program for the patient warming system ...
Submitted by validvik71 on June 26, 2007
Category: Business
Words: 2529 | Pages: 11
Views: 155
Popularity Rank: 67,806
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Executive summary
By early 1988, Augustine Medical executives were actively engaged in finalizing and marketing the program for the patient warming system named Bair Hugger Patient Warming System. The principal question yet to be resolved was how to price this system. Several considerations are required in terms of organizational objectives, demand for the product, customer value perception, buyer price sensitivity, the price of competitive offering, and direct variable costs. The company has two alternatives to price this system, either the skimming pricing strategy or the penetration pricing strategy.
The Bair Hugger system, which consist of a heater/blower unit and a separate inflatable plastic/paper blanket, is an air-circulation product and provides hypothermia patients surface warming. Although using the skimming pricing strategy has greater return in the short run, the danger is the company can not have a greater market share as well as a long run profit. Also, this market is price-sensitive to alternative methods. On the other hand, since the demand is known, the estimate of the total potential market for this system is about 2737 units, and 1000 units of blankets for each blower unit per year, and there are many substitutes existing, we strongly recommend that the company should employ penetration pricing strategy to market this system. In conclusion, the company can get into the market quickly and gain favorable market shares as soon as possible if it offers a low-priced blower unit. Also, the company could have long-term profits by selling lots of blankets only if they have greater market shares.
Problem Definition
In July 1987, Augustine Medical was incorporated as a Minnesota corporation to develop and market products for hospital operating rooms and postoperative recovery rooms. One of two products the company planned to produce and sell was the Bair Hugger Patient Warming System designed to treat...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!