ATL Case Study

Essay by EssaySwap ContributorUniversity, Master's February 2008

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ATL Case Study Summary of Relevant Issues and Facts ATL is a leader in the medical ultrasound business and has 1997 sales of $431 million, profits of $21.2 million, and 2700 employees. Since its establishment in 1969, ATL has consistently been among the leading companies which all have close market shares between 15 to 17 percent of the ultrasound market. The rivalry amongst the major players is intense and all are threatened by entrance of GE and Siemens. These companies have the opportunity to bundle their various medical products offering lower prices and stealing market share away from the ultrasound leaders.

The dilemma management faces is whether to continue a broad market focus or to prioritize its scare technological resources into particular segments. In the international market, the opportunity lies in lower end products while domestic customers who are less price sensitive, are looking for higher end machines. Many company insiders have frowned upon the executive committee's lack of establishing a strategy and feel that the failure in the low to mid-grade markets especially with the HDI 1000 is a result of this.

Others feel that the company is too technology-driven and not enough emphasis is placed on capital budgeting in order to evaluate the best usage of scarce resources. The latest move has been a merger with Medison which will focus on the low end price segment.

SWOT Analysis Strengths: -Reputation is solid from having introduced the world's first digital ultrasound -Established itself as one of the top four ultrasound manufacturers -Offers products from the mid-range segments up to the premium-performance which constitutes 76% of the world market.

-Company has direct sales and service subsidiaries in 14 nations while maintaining an extensive network of independent distributors in other countries -Pioneered harmonic imaging technology and remain at the forefront of...