Biopure Corporation
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Biopure CorporationAccording to this case, Biopure is a company focusing on how to research and development of substitute blood in the medical area and how to put this technical into the medical market. And my essay will be explain the two main product, Oxyglobin and Hemopure which research and development under Biopure Corporation. Oxylobin is a substitute for animal, in other side, Hemoglobin is made for human. But the problem is Oxylobin is already got the approved by FDA (a requirement of a new medical product could be launch) but the Hempure is not yet. And this two product is very similar to each other’s. If Biopure launch of Oxylobin too early with a low price, as we know this two product is substitute goods, one products in a lower price will must influence the other one lower the price, to share the market. So it will be resulting in loss of the potential profitability of the company directly. Therefore, what time and price of Oxyglobin should be set up and launch will not result endanger the potential of Hemopure in the market is my discussion purpose.   First, let we look at the Biopure Company’s Hemopure market analysis, there are a lots of demand about 300000 units per years. And it will be concern to many different area of medical, such as surgery, help blood transfused, and treat anemic patients. And one advantage of the Hempure is it have almost two year’s shelf life, and the attributes could be accept by majority peoples. It will not contaminated. This is the majority reason which could made Biopure access more potentially in the human market. Compared to its competitors, Biopure in the supply process have lower percentage of rejected units, it could easier accept than other company’s similar product. And in this technology field could say it is blank, Biopure could fulfilled this blank, so the potential in human market is so large.Second, let we consider the animal market analysis, the demand is about 150000 units per year. The most demands of animals market is link to veterinary, primary care and emergency care. And compare to their competitors, Biopure got the approved of FDA, this can make sure when the oxyglobin enter a new animal market it will no barriers when other company need use a lot of time to get the approval into this market. And in this period, Biopure could take full advantage and eliminated the shortcoming to extend the market. And look at the entire market environment, Hempure and oxyglobin has a great potential because there is a huge demand in the market when there are some emergency like blood is not transfused, their product will always have demand.
Even there are a good potential in the human market and animal market, but there are still a lot of obstacles need Biopure company to face. Overall the human market, as I stated above, humpure is still not get the approval from FDA, even this product have a perfect profitability, if it cannot sale in any city, state and country, it will be “zero” profitability. Nobody will use the no guarantee product, even someone take the risky buy this in the black market, what it result if someone produce side effects? The result is the company will lost respect, customer and market. So the first obstacles to Biopure’s success in the human market is acceptance by the medical institute, and expert. The second obstacle is the price, most people will choose the donated blood when everyone face to choosing the charged blood and a donated blood. But we cannot only supply the hempure to emergency customer, we need supply the product to more common customer to keep a high business cycle. The last obstacle is the people’s opinion, how many people will criticize the negative perception with the humpure, how to let people trust the humpure is healthy is the critical to success. When face to animal market, the first obstacles is same as the human market. How to let people accept it, even it could really a useful product in canine transfusion medicine, but it still will be some side effects. Hoe to prove the advantage will overwhelm the disadvantage is a long time process. The other obstacles is when launch the product in the human market and animal market, the first launched product will influence evaluate of the other. If the first product have a negative perception in the market, the second launched product will take the risky which people not trust it anymore. So how to figure this problems will be the key of success.The unbalance to set up the price between oxyglobin and hemopure will be the threat. Because Biopure company have limited manufacturing equipment, worker and plant. If the company cannot balanced the two product profitability it will be make unbalance sale units. The oxyglobin will become a threat to Hemopure when people think this is just two same product, this will result more people reduce to buying the Hempoure, and make a negative perception to Hemopure. And like I stated in the last paragraph, if we first launched the Oxyglobin with a bad evaluation, it will be result people do not trust the Hemopure, put it in a weak position.