Optical Distortion Case
Case Study
Jingjing (Cathy) Xu jxu38@hawk.iit.edu May 1, 2013
I. Executive Summary
The dilemma ODI faces is whether introduce its product at a higher price and continue process its multiproduct and multimarket strategy. Based on ODI limited resources and current situation of poultry industry in United States, it should focus on large-sized chicken farms and price ODI lenses at a higher level for the sake of its profits and its future business plan.
II. Introduction
With the fact existed in poultry industry in late 1970s that most of the chickens in United States were owned by some large farms. Optical Distortion, Inc., a contact lens company, has developed a kind of contact lens applied on chickens considered to hold enormous market potential. However, it is hard for ODI to decide how to price its products and how to extend its business nationwide considering its own limited resources.
III. Analysis and Problem Identifications
* Consumer Needs and WTP
There are various-sized customers: small farm, medium farm, and large farm. They all suffered the loss caused by pecking order and cannibalism, and now most of them adopt the method of debeaking to reduce the impact of peck order, however, debeaking has some defects itself, and no matter what choice farmers make, they would concern following aspects before making the decision: whether the product or service is cost effective; the trauma that would bring to chickens, since traditional depeaking method would cause damage to the chickens in some degrees; the convenience of product usage is important especially for large farm; the after-sale services means if the company can provide professional follow-up services to the farm after purchasing.
The larger farms, the more suffered from pecking order, will be more interested in our product and care about more on the quality of product or service and what economic value the product will bring to them.
The value of ODI lens for farmers is the
Jingjing (Cathy) Xu jxu38@hawk.iit.edu May 1, 2013
I. Executive Summary
The dilemma ODI faces is whether introduce its product at a higher price and continue process its multiproduct and multimarket strategy. Based on ODI limited resources and current situation of poultry industry in United States, it should focus on large-sized chicken farms and price ODI lenses at a higher level for the sake of its profits and its future business plan.
II. Introduction
With the fact existed in poultry industry in late 1970s that most of the chickens in United States were owned by some large farms. Optical Distortion, Inc., a contact lens company, has developed a kind of contact lens applied on chickens considered to hold enormous market potential. However, it is hard for ODI to decide how to price its products and how to extend its business nationwide considering its own limited resources.
III. Analysis and Problem Identifications
* Consumer Needs and WTP
There are various-sized customers: small farm, medium farm, and large farm. They all suffered the loss caused by pecking order and cannibalism, and now most of them adopt the method of debeaking to reduce the impact of peck order, however, debeaking has some defects itself, and no matter what choice farmers make, they would concern following aspects before making the decision: whether the product or service is cost effective; the trauma that would bring to chickens, since traditional depeaking method would cause damage to the chickens in some degrees; the convenience of product usage is important especially for large farm; the after-sale services means if the company can provide professional follow-up services to the farm after purchasing.
The larger farms, the more suffered from pecking order, will be more interested in our product and care about more on the quality of product or service and what economic value the product will bring to them.
The value of ODI lens for farmers is the