1. Particularly in America, where healthcare organizations had more resources to purchase state-of-the-art medical equipment, the outlook for CT Scanners looked promising. Neurologists in the U.S. also openly embraced utilizing the latest innovations.

Perhaps the spread of conventional X-ray machines could be used as a tool for forecasting the success of the CT Scanner. Even though the X-ray machine costs around

$100,000, it is common place at hospitals around the United States. Furthermore, EMI was targeting a few large, prestigious hospitals, rather than trying to sell to a large number of hospitals or radiological units outside of hospitals. While the United States was fertile ground for CT Scanners and EMI, the company had no experience in the American market and a very limited amount of experience in the medical field.

 2. The expertise developed by Hounsfield and his researchers, along with protection from patents, would give EMI a four-year market advantage over their competition. The research fund established by John Reid as a means of diversifying EMI, definitely enabled EMI to develop the CT scanner. Holding the patents and being first to market, however, appear to be the only competitive advantages EMI has. While profitable, EMI is dwarfed in size by the major suppliers traditional medical imaging equipment. EMI also has no experience in the American market, where it hoped to sell most of its products.

All of the components for the scanner were preexisting. With outside vendors accounting for 75-80 percent of the scanner’s manufacturing costs, Powell thought that risk was lessened. The time seemed to right for EMI to diversify, particularly into the profitable medical industry. The music industry from which EMI derived a good deal of its profits was not reliable. The company had a strong reputation in the electronics field; however, EMI had not pursued the lucrative medical industry. Furthermore, the American market welcomed new technology and had the money to buy the CT scanners.

3. When one considers the strong market for CT scanners in America, that producing CT scanners would enable EMI to move into an area of electronics it has not occupied, and the limited risk in manufacturing costs, EMI should produce the CT scanner. In committing to the CT project, EMI would use a large portion of its R&D budget. However, the profits would be seen immediately and would be long-lasting. Also, it was noted that EMI seemed be devoted to too many projects, but dedicated to few of them. This large project would narrow or focus the company’s vision. Even though this is moving the company into a new segment, the medical field, this project could be coupled with needed strategic planning to solidify the company’s vision.

 4. I would implement the decision to go forward with the CT by incorporating the plan in an overall corporate strategy. Perhaps it would be the vision of EMI to be a producer of superior electronic products for the leisure, music, and health care industries. A part of this vision would be Powell’s state that it should be EMI’s objective "to achieve a substantial share of the world medical electronics business."

EMI should support the development of the CT scanner, not deviate from using outside vendors in the manufacturing process, and focus a good deal of attention on the American market and how to sell their new product. Selling to a few prestigious hospitals seems to be a good notion, making that reality may be somewhat different. In addition to selling the machines, EMI will also have to service them. The CT may replace other medical imaging equipment. Larger, established companies may exert pressure on EMI. I would examine these issues during the development of the scanner.