BIOMEDICAL INNOVATION AND VENTURE CREATION | Abbott Laboratories

Running head: BIOMEDICAL INNOVATION AND VENTURE CREATION
BIOMEDICAL INNOVATION & VENTURE CREATION
Name of the Student
Name of the University
Author note
Company: Abbott Laboratories

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Executive Summary
The mission of this report is to examine the Biomedical Innovation and Venture creation of
one of the most renowned Biomechanical Company named Abbott Laboratory. The target
market has been chosen as Saudi Arabia. The product for the target market will be the
Diabetic diagnostic systems including cardiac monitoring and medicinal consumables. The
report examines various business strategies that include RAISON D’ETRE including Mission
Passion, Values; Market analysis including TAM, persona; VALUE CREATION including
Product Description, Problem, Quantified Value Proposition and others. Product Unit
Economics has been also analysed using COCA and LTV. The Market analysis has been
conducted while projecting the financial estimations for next 5 to 10 years as a Biomedical
Manufacturer and seller in the market of Saudi Arabia. The product selection and promotion
strategy has been also discussed in this report.

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Table of Continent
1 RAISON D’ETRE...................................................................................................................6
1.1 Mission:............................................................................................................................6
1.2 Passion:............................................................................................................................6
1.3 Values:..............................................................................................................................6
1.4 Initial Assets:....................................................................................................................7
1.5 Initial Idea:.......................................................................................................................7
2 INITIAL MARKET................................................................................................................7
2.1 Beachhead Market............................................................................................................7
2.2 End User Profile...............................................................................................................8
2.3 TAM:................................................................................................................................8
2.4 Persona:............................................................................................................................8
2.5 10 Customers:...................................................................................................................9
3 VALUE CREATION............................................................................................................10
3.1 Use Case:........................................................................................................................10
3.2 Product Description:.......................................................................................................11
3.3 Problem:.........................................................................................................................12
3.4 Quantified Value Proposition:........................................................................................13
4 COMPETITIVE ADVANTAGE..........................................................................................13
4.1 Moats:.............................................................................................................................13
4.2 Core:...............................................................................................................................13
4.3 Competitive Positioning:................................................................................................14

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5 CUSTOMER ACQUISITION..........................................................................................14
5.1 Decision Making Unit:...................................................................................................14
5.2 Customer Buying Process:.............................................................................................15
5.3 Windows of Opportunity:..............................................................................................16
5.4 Possible Triggers:...........................................................................................................17
5.5 Regulatory Strategy:.......................................................................................................17
5.6 Reimbursement Strategy:...............................................................................................18
6 PRODUCT UNIT ECONOMICS.........................................................................................19
6.1 Business Model:.............................................................................................................19
6.2 Pricing:...........................................................................................................................19
6.3 Short Term LTV:............................................................................................................20
6.4 Short Term COCA:........................................................................................................20
6.5 Medium Term LTV:.......................................................................................................21
6.6 Medium Term COCA:...................................................................................................21
6.7 Long Term LTV:............................................................................................................22
6.8 Long Term COCA:........................................................................................................22
7 SALES...................................................................................................................................23
7.1 Preferred Sales Channel:................................................................................................23
7.2 Sales Funnel:..................................................................................................................23
7.3 Short Term Mix:.............................................................................................................24
7.4 Medium Term Mix:........................................................................................................24

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7.5 Long Term Mix:.............................................................................................................24
8 OVERALL ECONOMICS....................................................................................................25
8.1 Estimated R&D Expenses:.............................................................................................25
8.2 Estimated G&A Expenses:.............................................................................................25
8.3 LTV/ COCA Ratio:........................................................................................................26
9 DESIGN & BUILD...............................................................................................................26
9.1 Key Assumptions:..........................................................................................................26
9.2 Assumptions Tests:........................................................................................................27
9.3 MVBP:...........................................................................................................................27
9.4 Tracking Metrics:...........................................................................................................28
10 SCALING...........................................................................................................................29
10.1 Product Plan for Beachhead Market:...........................................................................29
10.2 Next Market:................................................................................................................29
10.3 Product Plan Beyond Beachhead Market:....................................................................30
10.4 Follow-on TAM:..........................................................................................................30
11 VENTURE FORMATION.................................................................................................31
11.1 Stakeholders:................................................................................................................31
11.2 Define Roles & Responsibilities:.................................................................................31
11.3 Assign Roles & Responsibilities:.................................................................................31
11.4 Engagements:...............................................................................................................32
11.5 Corporate Filings:.........................................................................................................33

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11.6 Formation Agreements:................................................................................................33
12 CAPITALIZATION............................................................................................................33
12.1 Capital Need:................................................................................................................33
12.2 Use of Funds:...............................................................................................................34
12.3 Offering Type:..............................................................................................................35
12.4 Pre-Money Valuation:..................................................................................................36
12.5 Post-Money Valuation:................................................................................................36
12.6 Investor Profile:............................................................................................................36
12.7 Investor Persona:..........................................................................................................36
12.8 Ten Investors:...............................................................................................................37
References:...............................................................................................................................39

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1 RAISON D’ETRE
1.1 Mission:
Abbott Laboratories is an American healthcare company aimed to offering various
pharmaceutical, diagnosis and patient care products throughout the globe. The mission of this
company is to provide all the necessary and accessory medical equipments and drugs to local,
national, continental, and international market while keeping the quality of product high
along with the diversity and uniqueness (Acs et al., 2016). Currently their mission is to
expand in a new market, specifically in Middle East that can improve their potential
profitability significantly.
1.2 Passion:
Abbott is a public limited company founded in 1888 as a pharmaceutical
manufacturing and supplier company. From the 1950 the company started to expand their
expertise in different fields of biomedical such as biomechanics, diagnosis process, acute
care, and other healthcare equipments. Currently they are one of the most leading biomedical
companies in the world having revenue of more than 27.39 billion US dollar (Shammari et
al., 2016). Their systems are used for HIV care, hepatitis and cancer diagnosis, diabetic care,
heard disease and other purposes. Throughout their growth the passion of Abbot is to offer
innovative products to global market.
1.3 Values:
Abbott Laboratory has three major values which are contributing to their business
philosophy and method of expansion. These main three values are research based
development, uplifting customer satisfaction, empowering the internal strengths. The research
based product development strategy enables them to develop diverse and differentiable
products. Besides, for customer satisfaction the company considers both the immediate

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customers and end term users of their products. Along with that to empower their internal
strength Abbott always prioritises their employee satisfaction and workforce engagement.
1.4 Initial Assets:
As a multinational and ever expanding company one of the major initial assets of
Abbott is their capital, in terms of both human and financial capital. Therefore, to start-up
their new market in any new market both workforce and expendability will act as major asset.
Apart from that, they have high market reputation that acts as an asset when it comes to a
competitive market environment (Alharbi, Atkins & Stanier, 2015). In other words, the
globally recognisable brand value is their third major asset that can act as a major initial
asset.
1.5 Initial Idea:
The initial idea is to offer an innovative product or a set of products to a market from
which Abbott could generate enough profitability and potential market growth. As mentioned
earlier the initial idea is to provide healthcare diagnosis products to the target market while
capturing the maximum section of the target market. To capture a new market the company
needed chose a market where the number of biomedical manufacturer is not high as required.
2 INITIAL MARKET
2.1 Beachhead Market
Beachhead market is the market that focused on a narrowed space of market where a
business can initiate the business with higher potential benefits. Therefore, in order to expand
the business within Middle East, the company needs to set their beachhead market in a
profitable area where the competition is low and the initial or start-up expense will be
comparatively low as well (Alkhamis et al., 2017). Therefore to start business in Middle East,
Saudi Arabia will be the most profitable market for biomedical products. Because of the very