Biomedical Innovation & Venture Creation: XYZ Medicare in Saudi Arabia

This report evaluates the biomedical innovation and venture creation of XYZ Medicare, a startup biomedical manufacturing company targeting Saudi Arabia. It examines various business strategies, including RAISON D’ETRE (Mission, Passion, Values), market analysis (TAM, persona), and VALUE CREATION (Product Description, Problem, Quantified Value Proposition). The report also analyzes product unit economics using COCA and LTV, exploring competitive advantages, customer acquisition strategies, and sales channels. Furthermore, it covers overall economics, design and build considerations, scaling plans, venture formation, and capitalization strategies, providing a comprehensive overview of establishing and growing a biomedical venture in the Saudi Arabian market.

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BIOMEDICAL INNOVATION & VENTURE CREATION
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Executive summary:
The aim of the project is to evaluate a biomedical innovation and venture creation of a startup
biomedical manufacturing company name xyz Medicare. The target has been chosen as Saudi
Arabia. The report examined diverse business strategy include RAISON D’ETRE including
Mission Passion, Values; Market analysis including TAM, persona; VALUE CREATION
including Product Description, Problem, Quantified Value Proposition and others. This report
also examined product unit economics with the help COCA and LTV.

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Table of Content
RAISON D’ETRE
.........................................................................................................................................................6
1.1 Mission:.................................................................................................................................6
1.2 Passion:...............................................................................................................................6
1.3Values:....................................................................................................................................6
1.4 Initial Assets:.......................................................................................................................7
1.5 Initial Idea:...........................................................................................................................7
2 INITIAL MARKET......................................................................................................................7
2.1 Beachhead Market:................................................................................................................8
2.2 End User Profile:...................................................................................................................8
2.3 TAM:.....................................................................................................................................8
2.4 Persona:..................................................................................................................................9
2.5 10 Customers:......................................................................................................................10
3 VALUE CREATION..................................................................................................................10
3.1 Use Case:.............................................................................................................................11
3.2 Product Description:................................................................................................................11
3.3 Problem:...............................................................................................................................12
3.4 Quantified Value Proposition:.............................................................................................12

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4 COMPETITIVE ADVANTAGE............................................................................................13
4.1 Moats:..................................................................................................................................13
4.2 Core:....................................................................................................................................13
4.3 Competitive Positioning:.....................................................................................................14
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:................................................................................................................16
5.5 Regulatory Strategy:............................................................................................................16
5.6 Reimbursement Strategy:.....................................................................................................17
6 PRODUCT UNIT ECONOMICS...............................................................................................17
6.1 Business Model:................................................................................................................18
6.2 Pricing:.................................................................................................................................18
6.3 Short Term LTV..................................................................................................................18
6.4 Short Term COCA:..............................................................................................................19
6. 5 Medium Term LTV............................................................................................................19
6.6 Medium Term COCA..........................................................................................................20
6.7 Long Term LTV..................................................................................................................20
6.8 Long Term COCA...............................................................................................................20

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7 SALES....................................................................................................................................21
7.1 Preferred Sales Channel:...................................................................................................21
7.2 Sales Funnel:........................................................................................................................21
7.3 Short Term Mix:.................................................................................................................22
7.4 Medium Term Mix:..............................................................................................................22
7.5 Long Term Mix:...............................................................................................................23
8 OVERALL ECONOMICS.........................................................................................................23
8.1 Estimated R&D Expenses:..................................................................................................23
8.2 Estimated G&A Expenses:..................................................................................................23
8.3 LTV/ COCA Ratio:..............................................................................................................24
9 DESIGN & BUILD....................................................................................................................24
9.1 Key Assumptions:................................................................................................................25
9.2 Assumptions Tests:..............................................................................................................25
9.3 MVBP:.................................................................................................................................25
9.4 Tracking Metrics:.................................................................................................................26
10 SCALING..............................................................................................................................27
10.1 Product Plan for Beachhead Market:..............................................................................27
10.2 Next Market:...................................................................................................................27
10.3 Product Plan beyond Beachhead Market:.......................................................................28
10.4 Follow-on TAM:................................................................................................................28

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11 VENTURE FORMATION.......................................................................................................28
11.1 Stakeholders:......................................................................................................................29
11.2 Define Roles & Responsibilities:.......................................................................................29
11.3 Assign Roles & Responsibilities:......................................................................................29
11.4 Engagements:.....................................................................................................................30
11.5 Corporate Filings:..............................................................................................................31
11.6 Formation Agreements:.....................................................................................................31
12 CAPITALIZATION.................................................................................................................31
12.1 Capital Need:.....................................................................................................................31
12.2 Use of Funds:.....................................................................................................................32
12.3 Offering Type:...................................................................................................................33
12.4 Pre-Money Valuation:.......................................................................................................33
12.5 Post-Money Valuation:......................................................................................................33
12.6 Investor Profile:.................................................................................................................34
12.7 Investor Persona:...............................................................................................................34
12.8 Ten Investors:....................................................................................................................35
References......................................................................................................................................36

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RAISON D’ETRE
1.1 Mission:
The mission of this Saudi Arabia based XYZ Medicare is to offer the various diagnosis
and patient care products worldwide. The mission of this company is to provide all necessary
patient medial high-quality equipment such as imaging equipment’s for diagnosis to the local,
national and international market for the growth of the company. The current mission is to
expand as imaging equipment of Diagnosis Company in the global market which can enhance
their productivity significantly.
1.2 Passion:
The idea of established a biomedicine manufacturing and supplier company in Saudi
Arabia emerged in 2017. The main idea is to expand the company in a diverse field of
biomedical such as diagnosis equipment’s, acute care equipment and other health care
equipment’s. Therefore, throughout the journey, the company aim to provide innovative
equipment’s of diagnosis in the international business market.
1.3Values:
The company, XYZ Medicare follows three core values which are contributing to
flourish the business in the global market. These values include research-based development of
equipment’s, uplifting customer satisfaction and empowering internal strength of the company.
The research-based product development enhanced the company to develop an innovative

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product to provide the patient centric care. On the other hand, uplifting customer engagement
would be done through providing excellent product for to gain the revenue of the company.
Lastly, empowering internal strength of the company would be done through building strong
workforce and strengthen the interpersonal skills.
1.4 Initial Assets:
As a new startup company, the initial asset of the XYZ Medicare Company is the capital
and workforce. Therefore, to start up the new market in the global market as a biomedical
company, both expandability and workforce will act as major assets. Apart from that, the highly
innovative products for the diagnosis and high market reputation because of innovation will act
as an asset when competing with the rival company.
1.5 Initial Idea:
The initial idea of the company is to offer an innovative set of products of the diagnosis
to the market where they can gain enough potential market and growth and profitability. Since
the initial idea is to offer high-quality health care imaging diagnosis products to the global
market, the company is required to choose a business market where low biomedical
manufactures are present.
2 INITIAL MARKET

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2.1 Beachhead Market:
Beachhead market defined as a market that focused on a narrow space of market where
the company cans imitative business with the potential benefits and fast revenue (Gardner &
Webster, 2016). Hence, in order to expand as a biomedical manufacturer in the Middle East, the
company is required to set their market in a place where expenses will be low compared to other
places and it would be easier to gain the profit in the shorter period of time (AlShathry, 2016).
Eventually, for starting a business in the Middle East country, Saudi Arabia will be the most
suitable place for potential marketing of biomedical products (Akintona, 2017). The prime
reason behind it is that in Saudi Arabia, a very limited number of the biomedical manufacturer
are present and eventually competition would be low and profit would be easier (Alharbi, Atkins
& Stanier, 2015).
2.2 End User Profile:
Xyz Medicare manufactures diverse imaging equipment for the diagnosis for giving care
which makes health care sectors, medical laboratories, rehabilitation as their direct consumers. In
other words, the end users for the chosen product would be patients, residents of rehab, health
professionals and other allied health staffs who would be able to use imaging technique without
complications (Kuratko, 2016).
2.3 TAM:
TAM or total addressable market focuses on the total market of business which involves
adjacent market, beachhead market, and extended market. Therefore, in this case the initial

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market would be Saudi Arabia; the adjacent market would be the other economically flourished
countries such as Egypt, Turkey and the United Arab Imarets (UAE) (Akintona, 2017). These
countries are chosen as a direct market because they lack well-known biomedical manufacture
(Aloulou, 2016).
2.4 Persona:
Persona in business industry is referred to the example of customer profile idea for the
business and would help to develop the customer experience (Eftekhari & Bogers, 2015). In this
case, a persona of Mr. A which is chosen persona that would be presented in the tabular format.
The persona profile would be following:
Background
Supply chain and procurement manager of the TSC
health care
Has job experience of 8 years, and 5
Married and have 2 offspring
Demographics
Male
Age: 39 -40 years
Dual HH income: 156,000 dollars
Suburban
Roles
To manage the Supply chain and purchasing
operation of the TSC health care
To conduct business deals with suppliers and
business partners
Goals
Identifying the most useful supplier for the high
quality healthcare equipment’s
Increasing the productivity of the company by
having innovative equipment
Enhance consumer engagement and market
reputation

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2.5 10 Customers:
Considering the primary customer segments the following 10 customers will be primary
buyer of XYZ Medicare in Saudi Arabia.
1. Public service health care
2. Health clinics of town
3. Government health clinic
4. Pathology laboratories
5. Non-government organization
6. Diagnosis laboratory
7. Private rehabilitation
8. Medical research institutes
9. Radiology services
10. Emergency sectors of health care
3 VALUE CREATION

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Awareness
Interest
Desire
Action
Personal Presentation
Promotion
Communication
Purchasing
3.1 Use Case:
The use case is applicable for deveining potently, customer experience while considering the
impact of the consumer’s personality, company services. For development of the use case in the
imaging equipment’s and health care products Awareness, interest, desire, and action model
would be used considering the current situation of Saudi Arabia (Sulphey & Alkahtani, 2017).
3.2 Product Description:
Xyz Medicare has a specialization in manly imaging technologies of diagnosis.
Therefore, in this case, their new venture in Saudi Arabia, the chose product segment is diagnosis
for the acute care where health professionals can use innovative imaging technology to diagnosis
patients (Burton, 2016). As a biomedical company, XYZ Medicare will offer various personal
and professional imaging technology for monitoring and diagnosis of the patients of clinic as
well as rehabilitation such as x ray machines, ECG for better diagnosis of patients. These