Introduction:
This case study is dealing with the products of GENIUS DNA which is famous as the sequencer. The company which has been selected is a well-known company for Genome with the brand name as GenapSys that deals with high-tech instruments, which has the high value for money for its clients. This company is charging price which is very high for few services which shows that the company is trying to get maximum benefit within a short period of time. Price Skimming is the price charged for cartridges and service fees.
Company is operating at a low cost leadership strategy which is their competitive advantage over the other competitors such as Roche, Illumina and Life technologies. However, there is intense competitive rivalry among these companies and each of them try to take over the market share of the other company. Market leader position is maintained and retained by the competitor Illuminia which has the market share of around 66%.
Description of the Models:
Company has developed three models which needs in depth analysis of the situation, its target market, positioning strategy, segments and profitability as well as for pricing strategy to be followed. These three models consist of selling the sequencers and cartridges by using market penetration strategy with a unique feature in the product by creating product differentiation in the minds of the customers so as to attract more customers with some change in packaging and display of the product. They need to design the positioning strategy by showing the customer the additional benefits of products such as convenience and time saving with this innovative product model.
Second model was to choose a pricing strategy named as market penetration strategy. In this pricing strategy, company will be charging in the start lower prices for its product to increase its market share which will eventually attract more customers so their customer base will also in this way and they will be able to sell more of their products and make this model successful by targeting those customers who were unable to get their services due to high pricing. This will give them benefit in the long run and they will be able to get economies of scale by increasing the demand and they would be able to earn more profits by selling more quantity rather than charging high prices with low quantity.
Third model consists of a strategy which is unique in its nature and it seems to be a more aggressive approach to gauge the market shares of its competitors by charging the prices even lower than its costs so as to attract the customers of their competitors. However, they will generate profits by charging the fees from Genomics users, who will be paying them the access fees charged for using their services. Potential customers would be Pharmaceutical companies as well as the researches who use company’s platform for getting the required information.....................................
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