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Case Study

Pathological Investigations Ltd. Bob Scott has just received the latest figures from his market research agency regarding last years overall market position. He is pleased as this is the third year that the company in which he is marketing director, has come out leader in terms of market share.

The company, Pathological Investigations Ltd. was formed ten years ago and supplies specialist measuring and testing machinery for use primarily in pathological laboratories. From nothing, the company has grown by overtaking competitors in the market based on innovative new products, aggressive pricing and high levels of after-sales service and technical advice. When the company started, the present incumbents in the market were well established with stable market positions and traditional ways of trading.

In fact, Bob Scotts competitors had become complacent over the years. Although these competitors were well established and much larger than the new entrant, perhaps because of these characteristics, some of their products and technologies were outdated. For example, they did not include the most recent developments in pharmaceutical measuring and testing machinery from America. Technology had moved on and Scotts company spotted the opportunity of applying this new technology to a new range of products for the industry.

In addition to changes in technology, the market had also changed. Government initiatives had forced hospital administrators and purchasing officers to become more effective and efficient in their supplier choice for equipment and consumables. New systems of tendering were introduced which made existing supplier relationships, often developed over many years, less important as more and more emphasis in supplier choice was placed on value for money.

Scott and his colleagues spotted these trends and decided there was an opportunity for a new competitor in the market. Ten years on, Scott quite rightly could feel a degree of satisfaction in how things had gone. They had moved from being a market nicher, to being a market challenger, and eventually market leader in the short space of ten years. Scott has a forthcoming meeting with his fellow directors in research and development, finance, personnel and production.

He is worried that their now established position as market leader is beginning to lead to an air of complacency in the company. It seems to him that new product development has slowed, and there is not as much enthusiasm to secure new business. He is also worried that two more small

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new companies have entered the market with exceptionally good products and very cost-effective pricing policies. He feels that at the forthcoming meeting he needs to impress upon his fellow directors the fact that history appears to be repeating itself.

QUESTION

1. Identify some of the key highlights of the case.

2. What elements of the marketing environment should Bob Scott and his marketing team analyze and assess with regard to developing future marketing plans.

3. How can the company attempt to protect its position as the market leader?