Mediquip S.A., a subsidiary of Technologie Universelle, is a manufacturer of CT scanners, X-Rays, ultrasonic, and nuclear diagnostic equipment. Their competitors consist of other European companies such as Sigma FNC, Eldora, Magna, and Piper. Even though Mediquip is a fairly new player in the medical equipment market compared to their competitors, they hold a global reputation for having advanced technology and proficient after sales service. Mediquip's sales organization consisted of eight country sales subsidiaries, each headed by a managing director. Within each of these areas sales engineers reported to their regional sales managers, who are responsible for reporting to the regional managing director.
This case focuses on the sales for computer tomography (CT) scanners, developed in the 1960's. CT scanners are medical devices that allow examination of cross sections of the human body through a display of images for diagnostic purposes. The end result of a CT scan is much like an X-ray image, differentiated by the ability to see sections of the body that could not be seen before on screen, such as an organ.
CT scanners are generally priced around 1.5 to 3.0 million per unit. Due to technological superiority Mediquip's CT scanners tend to be in the higher price range compared to their immediate competition.
The European market for CT scanners is estimated to at around 200 units per year. The typical clientele for CT scanners consists of private and public sectors. The public sectors are government owned or non-profit organizations such as universities or charitable institutions. The public sector buying format tends to be budgeted a year in advance, and involves many different people in the buying decision, which makes it more complex. The public sector represents a much higher percentage of CT scanner sales compared to the private...