[Type the company name] | ECTON INC. ANALYSIS | | | | |

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Ecton Inc, an innovator medical imaging firm, is caught in a similar situation that many startup companies face once they are in the final stages of a product development cycle. They must choose between continuing with product rollout, which necessitates substantial capital input to increase the scale of operations, or becoming acquired by a larger organization which already has the resources and competence to ensure production, sales, and distribution for the same product. This report focuses on Ecton’s current market position, examines its future choices, and offers a recommendation in light of the prior analysis. Ecton’s Position: In order to understand Ecton’s current position in the ultrasound imaging marketplace, the terms "disruptive technology" and “sustaining technology,” created by Clayton M. Christensen, must be reviewed. As known, what these terms mean, Christensen further defined disruptive technologies into two sub-groupings: low-end disruptive and new-market disruptive. Target market is the major difference between the two categories. Low-end disruptive technology tries to target lower end customers with a lower-cost proposition, while the new-market disruptive try to compete in novel markets which may create new consumer values altogether. Thus, to correctly position Ecton, one must analyze the performance trajectory of conventional technologies in the ultrasound image market for cardiology. Typically, the average customers of the ultrasound cardiology imaging market are cardiologists who need quantitative information (such as velocity accuracy) and the best image quality possible. Established ultrasound imaging companies, such as HP and Acuson, were constantly pursuing existing technology along these guidelines to meet clinical demands. However,