Submited To:
Prof. S. Garimella
Dated: 18th July 2010
Submitted by:
Aditi Sharma
Amandeep Singh
Ashwini Sinha
Divay Makkad
Prashant Akhawat IMI | INTERSCIENCE, B.V.: SEEKING A NEW MARKET FOR GAS CHROMATOGRAPH |
Contents 1. Introduction 3 2. Markets for gas chromatograph 3 3. Players in the contract laboratory market and the price war 4 4. Business Model of Agilent and Varian 4 5. Business Model of Thermo-Finnigan 5 6. Issues 5 Q1. What are the tradeoffs for Interscience in using geography versus application as a basis for market segmentation? 6 Q2. What is the value of the TRACE GC versus the Varian 3800 for the contract laboratory market in Benelux? 7 Q2B.What is the incremental value of the proposed One-Day Emergency Response Guarantee for the Trace GC? 11 Question 3: Which Market should Interscience target and what should its positioning of the Trace GC be? What, specifically, is the value proposition for the Trace GC in the selected market? 14
1. Introduction
The case pertains to Interscience B.V, Netherlands-based, 25 year-old, scientific equipment reseller company. Interscience is an exclusive marketer of gas chromatographs manufactured by US firm Thermo Finnigan. Gas chromatographs are used for testing chemical contamination by the contract laboratories. The equipment has other high end usage in the R&D laboratories particularly for new product development. The contract laboratories perform various tests such as water, soil and air for companies, institutions and government. Recent environmental legislations across Europe have propelled the demand for such testing and in effect the contract laboratories are growing very fast. However, when it comes to purchasing gas chromatographs, contract labs are extremely price sensitive.
2. Markets for gas chromatograph
Gas chromatograph is purchased