Shimadzu retreats to dealer network as MRI sales drop

July 13, 1994

Hybrid system fails to show results Shimadzu Medical Systems is finding the going tough in the U.S.MRI market. The vendor is scaling back its direct-sales MRI effortin favor of a distributor and dealer sales network. Shimadzu said last month

Hybrid system fails to show results

Shimadzu Medical Systems is finding the going tough in the U.S.MRI market. The vendor is scaling back its direct-sales MRI effortin favor of a distributor and dealer sales network.

Shimadzu said last month that sales emphasis in MRI would beshifted to the existing authorized distributor and dealer network.The move was made in reaction to slow sales in the MRI segment,which has dropped more than 50% in the last two years, accordingto Mark Silverman, Shimadzu's MRI director.

"This is a response to declining reimbursement economics,health-care reform and the shrinkage of the private MRI market,"Silverman said. "Shimadzu is committed to increasing itsworldwide MRI presence and will continue to offer MRI in the U.S."

Shimadzu has long relied on dealers and distributors for MRIsales. The vendor last year implemented a hybrid direct/distributor/dealersystem in a move to bring more of the sales effort in-house asShimadzu geared up its drive for U.S. market share (SCAN 7/28/93).That system apparently failed to pay off, however.

In conjunction with the change in MRI sale emphasis, Shimadzuhas streamlined its corporate staff, the Torrance, CA, companysaid. Shimadzu will maintain its MRI R&D effort in Japan.