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Dr. Laura Dresding was the founder of Dresding Medical (DM). The company has enjoyed success in designing, manufacturing and supplying medical equipment to hospital and clinics. Through their core competency of translating different customer needs into customized products, DM has retained a satisfied customer base. These clients have traditionally valued dependability and flexibility over speed and price. However, part of the customer base has gradually shifted away from clinics and towards direct consumers. In order to address this market, DM has developed a new generation of “small black box” products, which are smarter and more portable than their standard offerings. However, the direct consumer’s desire standardized low-cost items that can be delivered more quickly than DM’s current intervals. Unfortunately, this shift to the consumer market does not correspond with the strengths of DM’s manufacturing operations. Direct consumers desire low-cost products, whereas DM has traditionally offered products that are high-cost. Expensive emerging medical technologies only compound the cost issue. DM is also very deliberate in developing their products to the market. For example, it takes DM over three years to develop a new base model. In order to adapt to evolving consumer demands, they’ll need to reduce those intervals to under 12 months. Another variation between the markets involves the “push vs. pull” concept. Although the clinical market tends to “pull” the customized products from DM, the mass quantities of standardized items will need to be “pushed” to some extent towards the consumer market.
1.1 Aims and Objectives of this Case Study
The main aims and objectives of the study is to provide a better understanding of the current and new markets of Dresding Medical, the relative importance of the performance objectives for the current and new markets, suggesting the strategic options available to the management and finally evaluating how the...