Product details

This is the second of a three-case series (507-185-1 to 507-187-1). It was 9:00 am on 28 December 2001. Xu Hang, Chairman and Co-Chief Executive Officer of Shenzhen Mindray Bio-Medical Electronics Co, Ltd, was mulling over some key questions pertaining to ultrasound business development. About six months ago, Mindray, a leading Chinese producer and marketer of patient monitors, forayed into the medical ultrasound business with the launch of DP-9900, the first full-digital black and white ultrasound imaging system (b/w ultrasound) in China. With this product, Mindray broke into the mainstream analogue product market dominated by international giants. As the demand grew rapidly, Mindray''s marketing and research and development team saw a good opportunity to develop portable models and economical desktop models based on the DP-9900 platform. At the same time, shocked by the DP-9900 launch, a global player in the ultrasound market invited Mindray to be the ODM (original design manufacturer) for its new digital b/w ultrasound. However, Mindray''s management realised that the global market for b/w ultrasound was shrinking and its share in the market would decline even though there was considerable potential in underdeveloped markets such as China. Xu Hang evaluated the possible directions for Mindray''s ultrasound business. Should the company go ahead and develop new b/w products based on the core technology of DP-9900? Should the company co-operate with the international player as an ODM? Or should the company prepare something for the next generation system, colour imaging system (colour ultrasound)? He knew it was a critical time for Mindray. The future of the company was going to be affected significantly irrespective of what decision he took.