Case study: Vscan - G E Healthcaress Pocket- Sized Imaging Device

This could be the stethoscope of the 21^st century, observed GEs CEO Jeffrey Immelt, as he demonstrated the device at a San Francisco technology conference. Roughly the size of a smartphone , GE Healthcares Vscan device incorporates powerful ultrasound technology to provide physicians with imaging capabilities at the point-of-care. The device may be used by primary care doctors to more quickly diagnose ailments such as gallstones, by critical-care workers to quickly confirm symptoms such as fluid on the heart, and by cardiologists trying to determine how well a heart is pumping. Vscan is portable and can be easily taken form room to room, facilitating its use in many clinical, hospital, emergency medicine, or primary care settings.

The innovative product was developed by GE Healthcare engineers from around the world, led by a new product development team in Norway. Vscan represents one of the first innovations to issue from a major strategic initiative at GE Healthcare termed healthymagination. Under this vision, GE plans to invest $10 billion by 2025 in the development of innovations focused on reducing costs, increasing access, and improving the quality and efficiency of health care around the world.

The $8000 Vscan device, which offers image quality equivalent to that of a far more expensive midrange ultrasound console also produced by GE, has received approval from the U.S Food and Drug Administration and from regulator bodies in Australia and Europe.

Answer the following questions:

1. Does the Vscan represent a breakthrough innovation? Will it cannibalise sales of GE Healthcares more advanced and much bigger-priced imaging equipment? (4 marks)
2. What marketing strategies should GE Healthcare follow to speed the adoption of Vscan in the United States and around the world? (6 marks)
3. Develop a value proposition for the Vscan.(4 marks)