SolMed Strategic Investment Approach

The SolMed is a new spin-off company that is being created through a partnership between the Danforth Manufacturing Company (DMC) and Welch Allyn, Inc in 2007. SolMed will develop and market medical instruments that are powered by conventional power and can also powered by solar power cells for use in locations where regular electrical is not available.

The SolMed collaboration between DMC (Danforth Manufacturing Company) and Welch Allyn, Inc supports the strategic goals in that it:

• Maintains Solid Financial Growth - SolMed will achieve financial growth through revenue growth and continuous process improvement leading to greater efficiencies.  Through thoughtful planning they’ll achieve profitable, sustainable growth, and thereby strengthen their future.

• Increases market share by bringing new products to market and increasing growth in current markets through additional marketing campaigns - Currently both DMC and Welch Allyn, Inc have market share in several major cities across the United States and around the world.  A goal of this joint venture will be to improve and expand market penetration to remote regions within the US around the world where electricity is not available. 

• Increase Product Competitiveness - Following in the tradition of Welch Allyn, SolMed will be the only company that focuses efforts entirely on helping front line practitioners work more effectively, efficiently, and empathetically with their patients at the point of care.  Developing products using solar batteries will strengthen these practitioners ability to provide equitable care to all of the patients around the world. 

• Promote Organizational Excellence - Building training and mentoring programs so our people grow as the business grows. In addition SolMed has adopted a similar corporate culture to Welch-Allyn, Inc, which is characterized as a family-like atmosphere, with less than a five percent attrition rate.

The product lines of SolMed are created through a partnership between Welch Allyn, Inc and DMC, so the prediction of the business market cycle will be reasonable assumed to be similar with the business sales trend from Welch Allyn Industries. This information of the business market cycle will be used as a leading indicator that will be used to forecast and to prepare the manufacture production trend and it will also be used by marketing department to adjust the resources in order to reach the goal of the growth rate set in strategic goals.

In a collaborative effort DMC (Danforth Manufacturing Company) and Welch Allyn, Industries have created the new company SolMed to develop and market medical instruments that are powered by solar power cells.  Welch Allyn contribution will emphasize product development, while DMC will bring experience in the development of solar power batteries.

SolMed will be providing solutions to front end care givers and will leverage off of years experience from both companies to complete and enhance their product offerings.  By demonstrating the same level of technological excellence as Welch Allyn, Inc SolMed will develop products in the areas such as embedded and application software, sensors, wireless communications and electronics.  The various lines of photovoltaic storage cells (solar-powered batteries) will be used in the medical instruments developed by SolMed.