Disruptive Innovation and Marketing: Vscan in Business Management

This essay explores the introduction of GE Healthcare's Vscan as a disruptive innovation, analyzing its impact on the existing market of healthcare equipment. Vscan, a portable ultrasound device, offers high imaging capabilities, challenging traditional stethoscopes and expensive ultrasound ...Read More

Running head: BUSINESS MANAGEMENT
Business Management with Marketing
Name of the Student:
Name of the University:
Author’s Note:

2BUSINESS MANAGEMENT
Table of Contents
Discussion of introduction of Vscan and analysis that is it a disruptive innovation or not.............3
Marketing strategy for GE Healthcare to enhance the adoption of Vscan in US and global market
.........................................................................................................................................................4
References........................................................................................................................................5

3BUSINESS MANAGEMENT
Discussion of introduction of Vscan and analysis that is it a disruptive innovation or not
Disruptive innovation refers to the innovation of a product in market, which affects the
sales of an existing product in a market (King and Baatartogtokh 2015). In the context of GE
Healthcare they have introduced Vscan device that is a powerful ultrasound technology. The size
of this equipment is as like as a smart phone. This is very helpful for the primary care physician
to diagnose gallstone, fluid on the heart and the way of heart pumping. This device is easy to
carry from one room to another room. This provides the physician high imaging capabilities
while they diagnose the patients. However, Vscan creates a new market and the new value
network for GE Healthcare. This technology derived from the strategic viewpoints of GE
Healthcare, which is termed as healthymagination. Therefore, this new technology replaces the
position stethoscope and expensive ultrasound consol. Thus, it affects the existing market of the
healthcare equipments those have similar functions like Vscan. Hence, it can be said that
Introduction of Vscan is a disruptive innovation in the context of GE Healthcare.
Lunching of the Vsacn by GE Healthcare is a disruptive innovation as it hampers the
present market value of an existing product. Often innovation of new products replaces the
products having similar functions (Wan et al. 2015). As per the given scenario, GE Healthcare
has decided to invest $6 billion to improve the efficiency of the Vscan. $8000 Vscan device
consists of the equivalent image quality of expensive midrange ultrasound console device.
Hence, innovation of Vscan cannibalizes the sales of high priced imaging equipment that are
produced by GE Healthcare.

4BUSINESS MANAGEMENT
Marketing strategy for GE Healthcare to enhance the adoption of Vscan in US and global
market
Implementation of the diffusion of innovation is an effective marketing strategy for the
organization to boost the adoption process of their new product (Cusumano et al. 2015). In the
context of GE Healthcare incorporation of the diffusion of the innovation strategy regarding
Vscan technology will be great approach to speed the adoption of such product in the global
market. In US the people adopt the products by analyzing its benefits. Hence, the diffusion
innovation strategy will be effective for GE Healthcare to convey the detail of their product to
the target audience. Knowledge, persuasion, decision, implementation and confirmation are the
five major steps of such strategy.
In the knowledge stage the marketers will create the awareness among the audience
regarding the product (Heidenreich and Kraemer 2016). Therefore, in the persuasion stage the
GE Healthcare can understand the perspective of the audience in the global market. Therefore, in
the decision stage they reveal the decision of the adaptors and then they implement the marketing
process for this product. In the final stage of this strategy that is the confirmation stage GE
Healthcare can understand the behavior or attitude of the adopter regarding their new product
Vscan. If they are able to implement each stage of this strategy then they can offer the new
Vscan products with advanced features based on the customers’ needs. As a result, it will be
adopted in the US as well as in the global market.

5BUSINESS MANAGEMENT
References
Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
Heidenreich, S. and Kraemer, T., 2016. Innovations—doomed to fail? Investigating strategies to
overcome passive innovation resistance. Journal of Product Innovation Management, 33(3),
pp.277-297.
King, A.A. and Baatartogtokh, B., 2015. How useful is the theory of disruptive innovation?. MIT
Sloan Management Review, 57(1), p.77.
Wan, F., Williamson, P.J. and Yin, E., 2015. Antecedents and implications of disruptive
innovation: Evidence from China. Technovation, 39, pp.94-104.