Case Analysis Innovative Toy is entering the infant toy market by distributing through supermarkets.
It is important to analyze if our potential supermarket channel, Big Tiger, and Innovative Toys can find a place where there is a win-win situation and where both companies are pursuing the same objectives.
Another concern Cannon holds is the ability of Ecton to penetrate a very harsh market fills with big, established, and advanced manufacturers.
Also, Cannon is not sure on how to approach specific market The first concern of Ecton’s board of directors and clinical advisors is the impact on their activities when acquired, specifically, the “product development process”.
Furthermore, Ecton will be having an ultimate chance to overcome barriers to entry in Echocardiography.
In other word, after acquisition, Ecton’s product is expected to be presented in conferences and seminars hold by prestigious cardiac institutes and organizations, such as American Heart Association.
In this way, Ecton team will be focusing on developing their product and start working on a new product in parallel.
The acquired company then will launch the production line for Ecton imaging system which expected not to take long time (because they share the same domain, ultrasound instrument knowledge).
Thus, Cannon and his partners will work in more freedom environment if they keep their company away from acquisition.
Action Plan If Ecton machine passes the tests, Cannon should actively approach the big manufacturers, HP, Acuston or ATL.