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Augustine Medical, Inc.

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Submitted By kunyeluo
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Augustine Medical, Inc.
The Bair Hugger® Patient Warming System
Problem:
August Medical, Inc. was incorporated as a Minnesota corporation to develop and market products for hospital operating rooms and postoperative recovery rooms. And the main problem of Bair Hugger patient Warming System is how to price this system and how to compete to other competitors.

SWOT Analysis: Strength | weakness | 1. The system has a good structure design.2. Warm air makes patients feel warm and stop shivering.3. The system cannot cause burns and water leaks around electrical equipment are not a problem, as they are with water-circulating blankets.4. The disposable blankets eliminate the potential for cross-contamination among patients.5. The system does not require that the patient be lifted or rolled.6. A large initial capitalization for the system to research and development.7. The product is easy access for nurses and doctors | 1. There is no patent protection for the heater blower unit.2. The disposable cover will result in more inventories and cost.3. The warming time per patient is about two hours, this is a long time.4. It has high margin paid. | opportunities | threats | 1. About 21 million surgical operation are performed annually in the United States, or 84000 operations per average eight-hour work day. So this market potential is big.2. The responses for the physicians and nurses are very good. | 1. The respondents express the system is price-sensitive to alternative methods.2. A variety of competitive products that use the above-mentioned technologies from Bair Hugger patient warming system are available.3. Capital expenditures in hospital were subject to budget committee approval. 4. For the water circulating blanket technology has little differentiation among the products of different firms. |
Critical Issues:
1. It was felt that the price set for the Bair

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