This case study analysis focuses on Biopure Corporation and its products Hemopure and Oxyglobin. It discusses the market for human and veterinary blood, the challenges faced by the company, and provides recommendations for the CEO.
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Running head: MARKETING CASE STUDY ANALYSIS MARKETING CASE STUDY ANALYSIS Name of the Student Name of the University Author Note
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1MARKETING CASE STUDY ANALYSIS Table of Contents I. Situation Analysis.......................................................................................................2 II. Problem Definition....................................................................................................4 III. Analysis of the alternatives......................................................................................4 IV. Recommendation.....................................................................................................5 References......................................................................................................................6
2MARKETING CASE STUDY ANALYSIS I. Situation Analysis The case study is based on Biopure Corporation which was established in the year 1984 by two entrepreneurs David Judelson and Carl Rausch. The organization had started its operations in the biopharmaceutical industry and the specializes in the process of purification of the proteins that are required by humans and for veterinary use as well. Biopure had been successful in developing its position as one of the three legitimate “blood substitute” based suppliers. The major purpose of blood substitutes was based on the ways by which the oxygen carrying based function of blood can be replicated and the issues that are faced due to transfusion of blood can be reduced as well (Aryee & Boye, 2015). The major product that has been introduced by Biopure Corporation was named as Hemopure which was targeted towards the human market. The market based on Human Blood has been analysed with the help of this case study. The red blood cells or RBCs are considered to be highly important for the process of blood transfusion in human body. The process based on human blood transfusion has also been discussed in detail in the case study. The human blood transfusion process is based on the ways by which blood is injected directly in the bloodstream of patients (Brunkow et al., 2018). The demands of human blood and supply is a major part of the discussion that has been made in the case study. The supply of blood is mainly based on the donations that have been provided by 8 million people in the years 1995 in the US. The case study has further provided major information based on the limitations that are related to donation of RBCs. The risks that are related to the transmission of diseases are a major part of the entire discussion made in the case study. The process based on autologous transfusions is a significant part of the discussion that is based on the ways by which the limitations related to blood transfusion can be reduced in an effective manner (García-Ruiz et al., 2017).
3MARKETING CASE STUDY ANALYSIS The demands that are related to donation of RBCs is also considered to be a major part of the discussion that has been made in the provided case study. Transfusions of RBCs and their importance in the process of human treatments have been discussed in case study. The pricing of the human blood is based on the process of blood donation and the differences that exist between the supply of blood and the demands. The treatments that are based on acute blood loss are discussed in detail in the case study (Green, Allard & Cardigan, 2015). The blood market related to veterinary treatment is important and RBCs are able to play a major role in the ways by which oxygen can be transported to the organs and tissues of animals. The market structure of veterinary blood market is affected by the veterinary practices that are prevalent in the US. The preventive that is provided to animals is important for the ways by which the market is developed. Demand for veterinary blood is also quite high and the acute cases that are related to heavy blood loss can be treated in an effective manner with the help of proper supply (Gupta, 2015). The supply of veterinary blood is considered to be a huge constraint is case of adequate levels of treatments that can be provided to the animals. The donation process in veterinary blood supply is a major part of the lack of proper supply that can fulfil the demands that are related to effective treatment. The practices that are based transfusions have a major impact on the entire process that is related to the proper treatment which can be provided to the patients. The substitutes that are available for human blood have also been discussed in the case study in detail. The case study has been able to provide an insight that is based on the benefits that are provided by different products that act as blood substitutes (Holson et al., 2015). The human blood substitutes are based on the strict regulations that are related to the Food Drug Administration or FDA based department of the US government. The industry
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4MARKETING CASE STUDY ANALYSIS based on the human blood related substitutes is considered to be quite competitive in nature. The approval that is provided to the organizations based on the ways by which substitutes of RBCs can be developed in an effective manner. The two major competitors who are a part of the industry include, Northfield Laboratories and Bexter International. The two organizations have operated in the same industry for a long period of time and have been able to provide severe levels of competition to Biopure Corporation (Mackenzie et al., 2015). The two major products of Biopure Corporation that have been offered in the market mainly include, Hemopure and Oxyglobin. The process of distribution and marketing of the two products was a major concern for the management Biopure Corporation. II. Problem Definition Major issue that has been faced by Biopure Corporation is based on the levels of competition that have been faced recently faced in the industry. The increase in levels of competition have taken place in the last few years and this has further led to the development of effective distribution based facilities of the company in order to reach the target audience within less amounts of time (Skrepnek, Thompson & Johnson, 2015). The two major products that have been developed by the organization are similar to each other and the management needs to make sure that both of them can stay in the market with the help of their individual benefits (Sen Gupta, 2017). III. Analysis of the alternatives The management of Biopure has been provided with different alternatives that are based on the ways by which the organization can market its major product named Oxyglobin. Carl Rausch had been wrestling with the alternatives that are based on the ways by which the new product can be marketed or the old product can be improved in an effective manner. The decision was to made related to the ways by which the launch of Oxyglobin related to
5MARKETING CASE STUDY ANALYSIS increase of short term based benefits (Stump, 2015). On the other hand, an option was based on the ways by which Hemopure can be established in the market. The ways by which opportunities provided by launch of Oxyglobin can be used in an effective manner is considered to be a major alternative that has been provided to the management or CEO of Biopure Corporation (Toma et al., 2016). The launch of a new product was considered by the organization in order to provide tough competition to the other organizations in the industry. The CEO of Biopure Corporation also considered this alternative in order to develop a competitive advantage in the market. The CEO of the organization was highly confused on the ways by which the profitability levels of Biopure Corporation can be increased in an effective manner. The main question that was faced by the CEO was based on the choice between long term and short term based benefits that can be taken by the organization. The issue had proved to be quite sensitive for the CEO as it was related totally to the future operations of the organization and the ways by which it is able to survive in the industry as well (Zimmerman et al., 2016). IV. Recommendation The two major options that have been provided to the CEO are as follows, The CEO can the postpone the launch of Oxyglobin and further provide attention to the process of proper establishment of Hemopure. The second option that has been provided to the CEO is based on the ways by which the launch of Oxyglobin can help the company to gain huge levels of short term based benefits in the industry. The postpone of launch of Oxyglobin can be provided with first rank among the available options for the management of Biopure Corporation. The main reason behind the provided option is related to the time which will be required by its another major product
6MARKETING CASE STUDY ANALYSIS named Hemopure to establish itself in the industry. Oxyglobin can thereby be introduced by the management after the proper establishment of Hemopure in the industry. The financial implications or requirements related to this option are quite less as compared to the launch of an entirely new product. The immediate launch of Oxyglobin can be provided with second position among the two major options that are provided to the CEO. The CEO can aim at gaining short term based benefits by Oxyglobin in the market immediately. Investments that are required for the launch of Oxyglobin are higher as compared to the first option that has been discussed. The organization will need to make effective investments in marketing and promotions of the product in order to launch it in the industry.
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7MARKETING CASE STUDY ANALYSIS References Aryee, A. N., & Boye, J. I. (2015). Current and emerging trends in the formulation and manufactureofnutraceuticalsandfunctionalfoodproducts.Nutraceuticaland functional food processing technology, 1-52. Brunkow, R., Delucia, D., Haft, S., Hyde, J., Lindsay, J., McEntire, J., ... & Voss, J. (2018).Cleaning and cleaning validation: a biotechnology perspective. CRC Press, Taylor & Francis Group. García-Ruiz, J. M., Galán-Arriola, C., Fernández-Jiménez, R., Aguero, J., Sánchez-González, J., García-Alvarez, A., ... & Bernal, J. A. (2017). Bloodless reperfusion with the oxygen carrier HBOC-201 in acute myocardial infarction: a novel platform for cardioprotective probes delivery.Basic research in cardiology,112(2), 17. Green, L., Allard, S., & Cardigan, R. (2015). Modern banking, collection, compatibility testing and storage of blood and blood components.Anaesthesia,70, 3-e2. Gupta, A. S. (2015). Biomaterials-Based Strategies in Blood Substitutes. InBiomaterials in Regenerative Medicine and the Immune System(pp. 113-137). Springer, Cham. Holson, J. F., Stump, D. G., Pearce, L. B., Watson, R. E., & DeSesso, J. M. (2015). Absence of developmental toxicity in a canine model after infusion of a hemoglobin-based oxygen carrier: Implications for risk assessment.Reproductive toxicology,52, 101- 107. Mackenzie, C. F., Pitman, A. N., Hodgson, R. E., Sussman, M. J., Levien, L. J., Jahr, J. S., & Greenburg, A. G. (2015). Are hemoglobin-based oxygen carriers being withheld becauseofregulatoryrequirementforequivalencetopackedredblood cells?.American journal of therapeutics,22(4), e115-e121.
8MARKETING CASE STUDY ANALYSIS SenGupta,A.(2017).Bio‐inspirednanomedicinestrategiesforartificialblood components.WileyInterdisciplinaryReviews:Nanomedicineand Nanobiotechnology,9(6), e1464. Skrepnek, G. H., Thompson, T. C., & Johnson, E. J. (2015). Debt and taxes: Marginal tax rate changes,capitalstructure,andinnovativeactivityinthebiotechnology sector.Journal of Commercial Biotechnology,21(1). Stump, J. F. H. D. G. (2015). Absence of Developmental Toxicity in a Canine Model after Infusion of a Hemoglobin-Based Oxygen Carrier: Implications for Risk.Reproductive Toxicology,52, 101-107. Toma, V. A., Farcaș, A. D., Roman, I., Sevastre, B., Hathazi, D., Scurtu, F., ... & Silaghi- Dumitrescu, R. (2016). Comparative in vivo effects of hemoglobin-based oxygen carriers(HBOC)withvaryingprooxidantandphysiologicalreactivity.PloS one,11(4), e0153909. Zimmerman, D., Dienes, J., Abdulmalik, O., & Elmer, J. J. (2016). Purification of diverse hemoglobins by metal salt precipitation.Protein expression and purification,125, 74- 82.