funding_floor2_station5_designnotes

Content for Station 5 – Market Entry Strategy Content to be input || Info for SL Team || Note card 1 – Introductory note card at kiosk Welcome to the Market Entry Strategy station. The purpose of this station is to provide you with knowledge on various options to enter your product into the market. Through the use of this information you will decide which opportunity is most advantageous to your product. For this example you will again be using the ear thermometer as your device in development. Remember to keep your potential device in mind throughout this station as you will need to complete a similar activity on your CPDF following this activity. As you can see, there are three weight balances in front of you. Each balance represents one of the three possible market entry strategies. After clicking on the balance you will receive a short description of that particular market strategy. Think about how each aspect of this strategy would correspond with an ear thermometer. Keep in mind, ear thermometers are an already existing product that have shown success in the current market. After you review each strategy, questions to think about include: Did the positives out weight the negatives, or vice a versa? For what reasons would this strategy be a positive for an ear thermometer? For what reasons would this strategy be a negative for an ear thermometer? Which pros for each option carry the most weight or the most importance? Which cons for each option carry the most weight or the most importance? Use your answers to these questions to assist you in grading each strategy. Choose one of the six options below to describe the positives and negatives of this market entry strategy as it relates to an ear thermometer · 3 – Pros strongly outweigh cons · 2 – Pros moderately outweigh cons · 1 – Pros slightly outweigh cons · 0 – Pros and Cons are even · -1 – Cons slightly outweigh pros · -2 – Cons moderately outweigh the pros · -3 – Cons strongly outweigh the pros After you have formulated your own responses to these questions click on the balances again to watch the balances weigh the pros and cons with help from our expert panel. Also, you will receive a note card with answers and explanations to the above questions.
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Step forward and click on the far left balance labeled “Licensing your Product” to begin the activity.

Visual and Content

What I’d like are three weight balances (at 50/50 obviously) with labels of the different market entry strategies. The user will go up to the each balance individually, click on it once (or maybe another kiosk) to receive specific information about that strategy. After reading the note card, they will have to click on the balance (or kiosk) again to reveal the results. Maybe have a board or something labeled “click here for results”

The results will move the positive and negative sides up or down based on the values that I provide you. (Positive and negative sides need to be labeled).

Note card 2 – Licensing your Product

Below is a short description on licensing your product. As you read this description try to envision how the specific aspects of this strategy would aid or impair the entry of an ear thermometer into the market.

Licensing is a business arrangement in which one company gives another permission to manufacture its product for a specified payment, which is typically a percentage of the device revenues. One advantage of licensing is less risk for the inventor since the licensee assumes most of the business risks. Licensing is also less expensive than manufacturing the device on your own. The major disadvantage of licensing is you receive only a small percentage of the device sales, usually in the range of 3-10%. If you propose licensing for your device, determine the potential licensing company. The best way to find a licensee is to find an existing medical manufacturer that is working with similar or complimentary devices.

Now that you have a better understanding of what licensing your product entails, it is time to decide how beneficial this option is for you as an ear thermometer developer. Make sure to answer the question presented to you in first note card and to rate this option between 3 being most advantageous to -3 being least advantageous. Licensing Results The result should be a -2 meaning the cons moderately outweigh the pros. (Balance should move accordingly). Note card 3 – Licensing Explanation As you can see, this strategy received a rating of -2 meaning the cons moderately outweighed the pros. Let’s break it down and see why this is such a poor choice. · Less Risk – Ear thermometers are an already existing product so the risk is substantially small compared to a brand new device ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Less Expensive – Less money out of your pocket to produce the product and in return less return money in sales ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Licensing Company – A licensing company would be easy to find due to the fact that many companies already exist for ear thermometers. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Receive Less Sales – You would receive only a minor fraction of the total revenue that was calculated in the previous station ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Licensing Company – Although not as difficult with a brand new device, you would still need to locate a company willing to manufacture your ear thermometer. Now that you have fully reviewed licensing your product, let’s take a look at selling your product. <span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; color: black;">Note card 4 – Selling your Product Now let’s take a look at the description of selling your product as a market entry strategy. The second entry strategy is selling your device to an existing medical device firm. The primary advantage of selling your device is that there is no further responsibility for the costs of continued R&D and FDA compliance. Selling your device also allows the sale proceeds to be invested in other products of interest. The major disadvantage of selling your device early in its development is the sales price will be much smaller due to the higher risk of successful device development. If you propose to sell your device/technology, identify potential firms that might be interested in your product. Now that you have a better understanding of what selling your product entails, it is time to decide how beneficial this option is for you as an ear thermometer developer. Make sure to answer the question presented to you in first note card and to rate this option between 3 being most advantageous to -3 being least advantageous. <span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: lime none repeat scroll 0% 0%; color: black;">Licensing Results The result should be a -1 meaning the cons slightly outweigh the pros. (Balance should move accordingly). <span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; color: black;">Note card 5 – Selling explanation From the movement of the balance appears that the cons still outweighed the pros, but not as greatly as in the licensing option. The results were a -1 meaning the cons only slightly outweighed the pros. Let’s take a look at the results. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> No further costs – With the ear thermometer being such a common product in today’s market, FDA compliance would not be a significant factor. Also, research and development issues would not be as a great of a factor in a product that has uses and features as clearly defined as yours. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Other products – Unless you planned to branch from your main device, sale proceeds would not need to be channeled to funding other products of interest. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Sale price – the price of your product would be much smaller than estimated, greatly reducing the total revenues figure calculated in the previous station. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Firms – similarly to the last station, a developer would need to identify a firm that would be willing to purchase your technology. Now that you have a better understanding of selling your product, let’s take a look at the final strategy, starting your own company. <span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; color: black;">Note card 6 – Starting your own company Let’s examine some of the positives and negatives of starting your own company. The last entry strategy is starting up your own company. The primary advantage of this approach is you have more control over the technology/device's development. The disadvantage of starting your own company is that you would likely have to leave your current job to seek venture funding for start up costs. If you plan to start up your own company, determine if the resources and time available is substantial to successfully market and sell the device. Once one entry strategy is decided on, assure that your device fulfills all FDA requirements. Now that you have a better understanding of what selling your product entails, it is time to decide how beneficial this option is for you as an ear thermometer developer. Make sure to answer the question presented to you in first note card and to rate this option between 3 being most advantageous to -3 being least advantageous. <span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: lime none repeat scroll 0% 0%; color: black;">Licensing Results The result should be a +2 meaning the pros moderately outweigh the pros. (Balance should move accordingly). <span style="-moz-background-clip: border; -moz-background-inline-policy: continuous; -moz-background-origin: padding; background: yellow none repeat scroll 0% 0%; color: black;">Note card 7 – Start company explanation Starting your own company shows a +2 rating meaning that the pros moderately outweigh the cons. The explanation below will help you to understand why this option proved to most advantageous. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> More control – This strategy allows you to have total control over your product’s production and distribution. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Revenue – This selection allows you to retain a majority of your revenue compared to the other examples. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> No partner – No alternate firm or company is needed in order to produce your product ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Leave current job – This choice would require you to devote a majority of your time and effort in order for your company to succeed. This would require you to leave any current jobs. ·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Risk – All risk and capital will be placed on you as the entrepreneur on you. An ear thermometer is an already existing product; therefore the risk taken is much less then if you were developing an innovative product that had never been seen. __ Final Assessment __ From the three choices given, you would benefit most from starting your own company in terms of risk versus reward. Keep in mind the reasoning for this option stems largely from the fact that an ear thermometer is an already existing product. Your specific model may have had slight improvements or modifications, but the design and purpose still remain the same. If your purposed device/technology is a completely new idea and device, you may want to explore how the other two options would benefit you as a product developer. Also, the amount of time and effort you are willing to sacrifice to the success of your device will also play a large role in the choice of a market entry strategy. You have now completed Station 5. Please turn to your CPDF and complete the activity in correlation with market entry strategy. After you have completed this task, make your way to Station 6 where you will review the material you have covered on the Commercialization floor along with information relating to your proposal advocate.
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