1. Skim Pricing and Penetration Pricing Mital Patel Medical Equipment

2. September 6, 2008 Toshiba Medical Equipment ST. ELIZABETH MEDICAL CENTER IS FIRST COMMUNITY HOSPITAL TO INSTALL THE Aquilion ONE DYNAMIC VOLUME CT IN EMERGENCY ROOM SETTING 320 Slice CT scanner Typical is a 4 or 16 or 64 Slice scanner The Aquilion ONE, the world's first dynamic volume CT system, can help doctors diagnose stroke and heart disease in mere minutes, rather than in hours or days. St. Elizabeth, which serves more than 300 stroke patients annually, is the first community hospital in the U.S. to install this revolutionary technology in an ER setting. Article Link

3. Toshiba's High-Powered CT Scanner Could Save Your Life in a Heartbeat

4. Aquilion 1 It can scan a Heart in one rotation. Scan a whole Organ in less than 10 seconds. Pediatric patients take ¼ of the dose they take at current time. Clear and detailed images. The only machine of its kind. You can do a CT and a Perfusion study at the same time.

5. Price and Technology Comparison between Vendors ProductPurchase Price Annual Service Hitachi16 Slice CT$500,000$80,000 GE64 Slice Hybrid CT $850,000$100,000 Siemens128 Slice CT$997,000$112,000 Phillips256 Slice CT$1,400,000$192,000 Toshiba320 Slice CT$2,400,000$230,000

6. Skim Compared to Penetration Toshiba Other Competitors

7. Skim Pricing Toshiba Mo re appropriate when the firm is more focused on profitability, rather than unit volume. Most likely to occur at early stages and late stages of the PLC. Favorable conditions: Considerable differentiation. (Latest and Greatest) Quality-sensitive customers. (High volume, Quality care) Sustainable advantage. (Only one in the market) Few competitors. (NONE) Few substitutes. (Give the patient more dose, exams done on two separate units) Difficult competitor entry.

8. Penetration Pricing Competitors More appropriate when business is focused on building unit volume. Most likely to occur at the early stages of the PLC. Favorable conditions: No/Limited differentiation. (Same Technology) Price-sensitive customers. (One facility low volume) No sustainable advantage. Many competitors. (All but Hitachi ) Many substitutes. Easy competitor entry. (Old Technology)

9. Breakeven on purchase Go to Spreadsheet