A California-based startup, was soon to release a brand new DNA sequencer that the business founder, Hesaam Esfandyarpour, believed was really revolutionary. The sequencer will be particularly less expensive - consequentially costing hardly a few thousand dollars and smaller than other sequencers, most of which were large devices terming tens of thousands or the hundreds of thousands of dollars. GenapSys' apparatus, named GENIUS, could also immediately create large amounts of information, as it was capable of sequencing a complete human genome in less than eight hours.
At this price, GenapSys' device would be attractive to customers that had not been able to manage sequencers, such as smaller laboratories or hospitals, and even expand the marketplace to include industries such as agriculture and biofuels. As GenapSys came closer to releasing its product, Esfandyarpour and his Senior Director of Operations and Strategy, Leila Rastegar (HBS '11), sat down to determine which of three business models they had choose to bring this device to market. In the first version, the business would sell sequencers at a higher price to those things which already purchased sequencers, chiefly important research labs and pharmaceutical firms, but place its machine as a quicker alternative to existing technologies.
In the second model, GenapSys will sell its sequencer at a low price but impose more for cartridges essential to running a sample, and earn its basic revenue from these cartridges. The third model would find GenapSys sell its apparatus at or around price, but exploit the info customers created to develop a proprietary database of genetic information. Customers could pay to access the database for research, to develop tests that are genetic, or for many other functions. GenapSys would also build an online store with the genetic evaluations customers created. Which was the appropriate model to have a meaningful impact and to bring the device to market?
PUBLICATION DATE: January 05, 2014 PRODUCT #: 814050-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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