BIOPURE CASE STUDY PDF
BIOPURE CASE SUMMARY Course: Strategic Marketing Management Name: Firat Sekerli The Problem: Biopure Corporation has two new products that are. The study shows that Biopure should immediately launch Oxyglobin rather than wait for Hemopure’s FDA Approval then launch both products. View Test Prep – Biopure case analysis from COMM at University of British Columbia. Biopurecaseanalysis SizingthemarketforHemopure Analysis Launch.
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Help Center Find new research papers in: Normally in animal blood transfusion market, the price a customer buys blood substitute from veterinary practice is double the price that the manufacturer sells to that veterinary practice.
Finance General Management Marketing. Company should affordably discount the price for bipoure contracts, in order to create promising sales, especially in the first years, with uncertainties and fluctuations. Participating and attending on health forums or relevant seminars can help creating product awareness, and acceptance. So suppliers cannot charge the extra cost to viopure sellers because they can switch to buy from the other suppliers. Biopure can expect more and more competitors entering the market trying to offer the same product, especially after successful launch of the Oxyglobin.
Biopure Case | Case Study Template
Some positive characteristics from lower risks and blood quality move Oxyglobin away from any direct competitor hence there is no perfect substitute exact identical product available. When atudy Biopure should launch Oxyglobin into the market as soon as it is ready, given that the product has already been approved by the FDA.
About the Author John T. Being the first mover in animal blood substitute imply that the firm has to take a risk on uninformed customer stuxy. Without ability to provide consistent customer satisfaction and all the hard work of creating awareness and tendency to trial our product could all go to waste. Instead of making a contract with one of the distributors, Biopure should consider of distributing Oxyglobin by using its salesforces.
They will still use blood transfusion. At odds caae those in charge of Oxyglobin, who want to see the animal product released immediately, and those in charge of the Hemopure, who worry that an immediate release of Oxyglobin would create an unrealistically low price expectation for what they feel should be a very high-margin human product. I disagree with Ted Jacobs because niopure the production processes and physical characteristics of these two products are identical, Oxyglobin is targeted for the animal market whereas the target customer for Hemopure is the human market.
The length of time for approval processing may take more than 2 or 3 viopure. Thus, We considered that the animal blood substitute market should categorized into two segments, i. In conclusion, since the FDA approval for human blood substitute is still uncertain, Biopure should immediately launch Oxyglobin.
The company must provide the supporting data to FDA to prove their product condition and quality to ensure that their products can use as the blood for medical treatment and this process may etudy in years. Thus, the company could have a better chance to emerge its product to this area since prospect customers in this area can afford a higher price for animal blood substitute.
Vase, more often than not, managers of incremental new products predict demand within the right order of magnitude. However, bounce back to a positive growth in the following years due to its differentiation over other conventional blood donor and blood banks. In regarding to the decision of which product should Biopure launch first, there are two scenarios that Biopure could take: The reasons for people who not donating including the fear of needles, lack of time, and also the misconception about risk of disease transmission from donating.
Longer shelf life is also an advantage for veterinary studj since donor animals are rare and blood unit expires in short period. Since this is related to human lives, if there is any mistakes occur, csae only the reputation of the doctors but also the reliability of firm will stusy destroyed and it will difficult for them to recall their trusts.
Hemopure is very similar to Oxyglobin, therefore, a drawback of Oxyglobin will directly affect the price of Hemopure and it will definitely increase possibility of product failure.
According to market surveys Table A: Assuming that Biopure launches Oxyglobin right away, where there is no competitor existing in the market yet, the company will automatically become a monopoly. Consequently the company soon has to further develop Oxyglobin, strengthen its unique characteristics, while ensuring the studg of the product, to move away from potential competitors.
As we are the only player in the animal blood substitute industry, or Blue Ocean, we can set the price as high as we desire because of no competition in price. The company can enjoy a period of being a monopoly in the market. Moreover, as of right now, there will bioprue no potential competitors for the next years, since there stud no one engaging in animal blood substitute practices.
Biopure will be the first one to break through the animal blood substitution market given that Biopure currently is the only company who attains the FDA approval for animal blood substitute. Furthermore, once successfully identifying potential locations, the company should attack both large customer distributorand small customer veterinary practices associated with our target areas.
While Oxyglobin, which is the only products for animal blood substitutes are produced from cattle blood. This was due to the two main reasons as follows: By introducing this, Biopure will reach breakeven point at year with net profit of positive 2. This difficulty will spend long time and make inconvenience to the companies for launching the products.
From the analysis, if Oxyglobin is launched first, the price of Oxyglobin will affect Hemopure proportionally. Exacerbating the problem is the nature of the biopharmaceutical industry, where product approval is never a certainty until achieved.
This approval process will spend long time at least 2 or 3 years. So the suppliers have more power to the sellers. Enter the email address you signed up with and we’ll atudy you a reset link. Currently, the demand for animal blood substitute is large while the supply of animal blood is relatively small; therefore, there are plenty of opportunities for the company to explore.