Given the limited information in this case, which product would you recommend that Apex commercialize? Why?
In order to select the product to commercialize, Apex should analyze the market, understand trends, and the value proposition of the offer. We can also look at this under the 5C Framework for Innovation.
Step 1: Understand the role innovation plays in the terms of the overall growth strategy.
For Compound A-115, the new superior product has no rivals in the market
For Compound B-227, the innovation can be offering a bundled solution, building brand reputation, or streamlining process innovation. This innovative business model can be a competitive advantage.
Step 2: Understand the lifecycle category.
For Compound A-115, the market is stable.
For Compound B-227, the market is growing
Step 3: Identify unmet customer needs
For Compound A-115, a superior solution is in demand, but competitors will be able to create a similar product in the future, customers will have substitute options
For Compound B-227, customers would prefer a single source for both products in the plastic oxidizer market
Step 4: Understand Competitive Behavior
For Compound A-115, there is one main competitor, Hamfield
For Compound B-227, the market is very competitive, with 3 strong competitors and 6 selling similar betas.
Step 5: Company Capabilities
For Compound A-115, Apex has a superior solution to what is available on the market, but will need to market heavily to acquire customers from Hamfield.
For Compound B-227, Apex has the customer base, and can create further synergies in sales and delivery.
The market size for Compound A-115 is $10 million and stable. Whereas the market size for Compound B-227 is $40 million and growing. Compound A-115 has one main competitor, Hamfield. Whereas, Compound B-227 is in a very competitive market, with 3 strong competitors and 6 selling similar betas. However, the Hamfield’s customer base is thought to be