Industry Analysis of Nucleon, Inc.
Nucleon, Inc.
Final Case
Table of Contents I. Executive Summary……………………………………………………………………………………………………………………3 II. Strategy Identification……………………………………………………………………………………………………………..…4 ▪ Key Issues and Problems III. Strategy Evaluation…………………………………………………………………………………………………………………….4 ▪ Industry Analysis – Porter’s 5 Forces ▪ Market Positioning Graph (Figure 1) ▪ Competitor Analysis – VRIO (Table 1) IV. Strategic Option Development……………………………………..………………………………………………………….12 ▪ Option A ▪ Option B ▪ Option C o Option C Flowchart (Figure 2) V. Strategic Option Evaluation………………………………………………………………………………………………………14 ▪ Trade-Offs Between Options (Table 2) VI. Strategy Selection…………………………………………………………………………………………………………….………16 VII. Strategy Implementation………..…………………………………………………………………………………….…………16 VIII. Managerial Implications………………………………………………………………………………………………………….16
I. Executive Summary Founded in 1985 by Dr. Alan Ball, Nucleon’s vision was to develop pharmaceutical products based on a class of proteins known as cell regulating factors. Although CRP-1 (Nucleon’s first product) was a naturally occurring protein contained in human blood plasma, the amount that could be extracted was far too small to be of any commercial use. For that reason, from 1985 to 1988, Dr. Ball and a small group of scientists researched ways of producing CRP-1 outside the human body. After extensive research, it was indicated that CRP-1 had potential as a treatment for burns and for kidney failure.[i]
Nucleon was one of over 200 firms founded since the mid-1970s to develop pharmaceutical technologies based on recent technologies in molecular biology and immunology. Not surprisingly, the new field of R&D also attracted the attention of established companies, which meant that competition was intense. Scientists at both established and new companies were racing to
Final Case
Table of Contents I. Executive Summary……………………………………………………………………………………………………………………3 II. Strategy Identification……………………………………………………………………………………………………………..…4 ▪ Key Issues and Problems III. Strategy Evaluation…………………………………………………………………………………………………………………….4 ▪ Industry Analysis – Porter’s 5 Forces ▪ Market Positioning Graph (Figure 1) ▪ Competitor Analysis – VRIO (Table 1) IV. Strategic Option Development……………………………………..………………………………………………………….12 ▪ Option A ▪ Option B ▪ Option C o Option C Flowchart (Figure 2) V. Strategic Option Evaluation………………………………………………………………………………………………………14 ▪ Trade-Offs Between Options (Table 2) VI. Strategy Selection…………………………………………………………………………………………………………….………16 VII. Strategy Implementation………..…………………………………………………………………………………….…………16 VIII. Managerial Implications………………………………………………………………………………………………………….16
I. Executive Summary Founded in 1985 by Dr. Alan Ball, Nucleon’s vision was to develop pharmaceutical products based on a class of proteins known as cell regulating factors. Although CRP-1 (Nucleon’s first product) was a naturally occurring protein contained in human blood plasma, the amount that could be extracted was far too small to be of any commercial use. For that reason, from 1985 to 1988, Dr. Ball and a small group of scientists researched ways of producing CRP-1 outside the human body. After extensive research, it was indicated that CRP-1 had potential as a treatment for burns and for kidney failure.[i]
Nucleon was one of over 200 firms founded since the mid-1970s to develop pharmaceutical technologies based on recent technologies in molecular biology and immunology. Not surprisingly, the new field of R&D also attracted the attention of established companies, which meant that competition was intense. Scientists at both established and new companies were racing to