Midterm Case Analysis — Document Transcript

1. Paige Rudolph MKT 463 Midterm April 30, 2003 Augustine Medical, Inc. Case Analysis Company Background  In July 1987, Dr. Scott Augustine, an anesthesiologist, founded Augustine Medical, Inc. (AM) in Minnesota. Their goal was to develop and market products for hospital operating rooms and postoperative recovery rooms.  Through experience, he discovered that hospitals needed an innovative approach to warming post-surgery patients. Dr. Augustine developed the Bair Hugger® Patient Warming System.  Company executives were occupied with finalizing the Bair Hugger® Patient Warming System in early 1988.  Original two products: (1) produce and sell patented warming system used to treat hypothermia and postoperative patents, (2) tracheal intubation guide for crisis situations and in the surgical room. Core Competencies  Providing the most innovative and safe way to warm postoperative patients and those with hypothermia. Augustine Medical, Inc.’s products are also more effective, less likely to leak water onto expensive equipment, and easier to operate than other competitors methods of hearing patients. The Hospital Market  Approximately 21 million surgical operations are performed annually in the US.  That’s 84,000 operations per average 8-hour workday.  Approximately 5,500 hospitals have operating rooms and postoperative recovery rooms.  Research commissioned by AM indicated that there are 31,365 postoperative recovery beds and 28,514 operating rooms in hospitals in the US.  60 – 80 percent of all postoperative patients are rendered hypothermic. This is a large portion of hospitals patients whose needs are not being met to the best of their ability.  Given the demand for postoperative recovery room beds, the research firm estimated that hospitals with fewer than seven beds would not be highly receptive to the Bair