Biopure Case Questions
Autor: Kathleen Yeh • March 11, 2019 • Case Study • 950 Words (4 Pages) • 535 Views
Kathleen Yeh
February 21, 2019
Biopure Case Questions
Conduct a SWOT analysis for Biopure the whole company.
Strengths
Oxyglobin is the first blood substitute for veterinary market that is government approved
Only product that is bovine sourced
Free of infectious diseases and contamination
Increased shelf life (up to 2 years)
Weaknesses
Short half life (excreted from body within 2-7 days)
Waiting for FDA approval on Hemopure
Lack of market experience
Low production capacity compared to Baxter
Opportunities
Build strong brand image for Oxyglobin
No other available blood substitute in veterinary market
Lower production var. expenses
Threats
Delayed FDA approval
Competitors - Baxter International, NorthField Laboratories
Unrealistic price expectation for Hemopure
When would be the best time to release both Oxyglobin and Hemopure? Do you think Biopure should release its Oxyglobin before its Hemopure? If Biopure decided to launch Oxyglobin first, what would be the benefits of doing so?
I believe it would be best to launch Oxyglobin first. I don’t agree with the issue that Ted Jacobs had expressed, suggesting pricing Oxyglobin at $150 would make it difficult to charge $800 for Hemopure. While the products are practically identical in physical properties and appearance, they are very different in application, as Oxyglobin is for the veterinary market, and Hemopure is for humans. With 84% of veterinary doctors reporting dissatisfaction in blood transfusion alternatives, the demand for Oxyglobin would be high. Considering Oxyglobin has already received FDA approval, it is the optimal time to launch the product and take advantage of the untouched market. Waiting to launch Oxyglobin could jeopardize their opportunity in being the first to enter the veterinary market, and risks the threat of competitors entering the market as well. By launching Oxyglobin first, they are able to focus on building a strong brand image and enhance Biopure’s reputation, which would allow Hemopure to easily follow in launching.
What would you charge for the Oxyglobin and Hemopure? Why? (show calculation) What would be the drawbacks of charging a high
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