My second set of recommendations is centered on marketing & manufacturing strategies and tactics, particularly in the U. S. After read the case, I am convinced that to successfully grow EMI medical imaging business and continue to reduce its dependence on the fickle and low margin music business, EMI has to succeed in the U. S market - the largest and most lucrative market. EMI should streamline and strengthen its U. S. operations, including manufacturing, and provide U. S. subsidiary more decision-making power on product development, parts supplying, pricing and service.
First, recruitment of a leader for its worldwide medical imaging business should be a priority. This person must have a strong U. S. operation experience and expertise in the medical diagnostics imaging industry. He or she should focus all energy to manage the relatively small but growing and most profitable EMI's medical imaging business. Marketing, manufacturing, R&D and resource allocation decisions should be made swiftly rather than be debated at various committees and be waited for final say from John Powell, who also managed other EMI business.
The U. S. subsidiary should assume more authority for many U.S. related decisions, including partnering with local parts supplier and pricing strategies in order to quickly respond to any competitive move in the U. S. market. Certainly, my U. S. -centric recommendations on marketing and manufacturing operations along with previous recommendations on a U. S. -based R&D facility have implementation risks and may post a cultural shock to this British organization. However, EMI can't afford any failures in the U. S. market. To successfully compete the U. S. -based GE, the top management needs to focus on and commit to the U. S.
CT scanner market and clearly communicate the vision to the entire organization to ensure the flawless execution. Furthermore, EMI should continue to build and leverage on its brand equity. Housefield was doing a great job being the EMI's spokesperson to establish EMI's reputation and its image as the leader in this field. EMI should expand its marketing and outreach effort in the U. S. It can recruit top thought leaders to speak on the behalf of the company on various CT scanner related subjects. The company also need place seeds in residents or fellows by conducting seminars or workshops at the top teaching hospitals.
My last set of recommendations is on the regulatory environment. As a sales unit leader in the CT scanner market in 1977 in the U. S. , EMI was facing increasing pressure from the cost-sensitive geopolitical environment inhibiting the demand growth. Moreover, as the CT scanner market was going through the stage one- growth phase, many competitors began to participate in this market and built up the production capacity. Therefore, expanding the U. S. market became critical, particularly in a "hostile" regulatory environment.
My recommendation is that EMI take an initiative to influence and shape the U.S. regulatory environment. EMI can invite opinions leaders in the industry, key decision makers and patient advocacy groups to visit EMI's U. S. or U. K. manufacturing or R&D facilities to showcase EMI expertise in this area and benefits of this technology bringing to mankind. The company should collaborate with competitors to work with the U. S. administration and U. S. legislation. The key lobby message should focus on the quality and speed of early clinical diagnosis that in the end provides the better medical care for all Americans.
In summary, my recommendations focus on challenges EMI was facing in 1977 in three areas: (1) threat of GE's new CT scanner, (2) EMI's less efficient internal decision-making process and operations and (3) emerging hostile regulatory environment. EMI had a great start to diversify its business and gained a leadership position in the CT scanner market. However, the battle just began and formidable competitors were ready to join the fight. EMI has to win the battle in the product innovation and the battle in the U. S. market in order to win the war.