This Case is about ENTREPRENEURSHIP, HEALTH, TECHNOLOGY
PUBLICATION DATE: January 05, 2014 PRODUCT #: 814050-HCB-ENG
A California-based startup, was shortly to release a fresh DNA sequencer that Hesaam Esfandyarpour, the business’s creator, considered as revolutionary. The sequencer will particularly be less expensive – consequentially costing just a few thousand dollars and smaller than other sequencers, most of which were huge devices terming tens of thousands or the hundreds of thousands of dollars. GenapSys’ apparatus, named GENIUS, could also swiftly create considerable amounts of information, as it absolutely was capable of sequencing a whole human genome in significantly less than eight hours. At this cost, GenapSys’ apparatus would be appealing to customers that had not been able to manage sequencers, such as hospitals or smaller laboratories, and even enlarge the marketplace to include sectors like biofuels and agriculture. As GenapSys reached closer to launching of its product, Esfandyarpour and his Senior Director of the Operations and Strategy, Leila Rastegar, sat to determine which amongst the three business models they would select to launch this device to marketplace.
In the very first version, sequencers would be sold by the business at a higher cost to those things which already bought sequencers, mostly leading research labs and pharmaceutical companies, but place its machine as a quicker alternative to existing technologies. In second model, GenapSys must sell its sequencer at a low price but charge more for cartridges essential to run a sample, and earn its basic revenue from these cartridges. The 3rd version would find GenapSys sell its apparatus at or around price, but use the info customers created to develop a proprietary database of genetic information. Customers could pay to get the database for research, to create evaluations that are genetic, or for a number of other functions. GenapSys would also build an internet store together with the genetic evaluations customers. Which was the correct model to have a significant impact and to bring the device to market?
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