¶ … solutions that would have helped Kurt Thaldorff convince Lohmann Hospital to buy the CT scanner from Mediquip, we need to be able to make some pertinents observations on the product, observations that would help determine why Sigma was in the end picked.
In my opinion, the most relevant and, at the same time, difficult question, is r4elted to the person who has the final word on decisions at Lohmann Hospital. As we have seen from the case study, this is certainly not Professor Steinborn, head of the radiology department, although he has something to say on the qualitative evaluation of the product. However, considering that the two main vectors in any acquisition are quality and price, he has no saying on the price, he is not able to negotiate it or even be aware of the price level.
This seems to be Dr. Hartmann's job, who may be considered an administrator for the hospital. Indeed, he is the one who receives the price offers, including the final, formal offer in September. It is obvious that Dr. Hartmann is concerned because the price Mediquip initially offers is some 34% higher than any of the competitors' offers. Additionally, even the last bid is 10% higher.
In my opinion, this is perhaps the most important weaknesses of the CT scanner provided by Mediquip: price. Throughout the case,...
Indeed, if we make a parallel and refer to cars, for example, you are keen to buy a Mercedes and not a Renault, even if it is five times more expansive, because it has additional safety features, you are more likely to be able to use it for a larger period of time, etc. It is the same here.
In this sense, inviting one or more people from the University Hospital to the company's headquarters operations near Paris appears not only a desirability, but a necessity. I would include here Professor Steinborn, who, as chief of the radiologists board would be able to understand some of the pluses for the product and what it would bring extra from all its competitors, but also Dr. Hartmann, who seems to have the final decision on whether to buy from Mediquip or choose one of the other companies.
The visit…
