Optical Distortion Case Summary
Recommendation: Optical Distortion, Inc. should charge a price of $711 per pair
3C’s: After a chicken farmer’s accidental discovery of the imporoved productivity of the chickens with reduced vision, Robert D. Garrison invented the Optical Distortion, Inc. lens for the chickens in 1965. By the end of 1974 the ODI lens had been tested on a number of farms in California and Oregon with satisfactory results, which is reducing cannibalization rate and being more tractable of chickens.
With a long-term license agreement with New World Plastics (NWP) for the exclusive, non-human use of a hydrophilic polymer and the injection molds of ODI developed, ODI can be a frontier of this newly invented market. Also the patent held by ODI could potentially …show more content…
The financial status is also properly prepared, because ODI raised an additional $200,000 through venture capital and held the patent for the technology valued at $103,000 and the company was free of debt.
As soon as ODI start to penetrate to the market, it will face the competition with the traditional debeaking business, which provides a conventional and cost-effective way of reducing the some effects of cannibalization, although it causes trauma to the bird, retards egg production, and requires more feed as compared to ODIs solution. There could be an other entrants such as a large agricultural supply fimrs which find a way around ODIs patent and can quickly develop a competing product.
The customers for ODI are various size of the chicken farms. In 1974, 80% of the 440,000,000 laying hens in the United States were housed on 3% of the known chicken farms. Recent trends indicate that small farms are disappearing at a rate of 25% annually and that the nature of the customer is changing from being a small, family-owned business to larger commercially oriented one. The overall chicken population is predicted to grow at a Compounded Annual Growth Rate (CAGR) of just about 1% from 1975-79. The South Atlantic region is the largest in terms of chicken population and accounts for approximately 22% of the
3C’s: After a chicken farmer’s accidental discovery of the imporoved productivity of the chickens with reduced vision, Robert D. Garrison invented the Optical Distortion, Inc. lens for the chickens in 1965. By the end of 1974 the ODI lens had been tested on a number of farms in California and Oregon with satisfactory results, which is reducing cannibalization rate and being more tractable of chickens.
With a long-term license agreement with New World Plastics (NWP) for the exclusive, non-human use of a hydrophilic polymer and the injection molds of ODI developed, ODI can be a frontier of this newly invented market. Also the patent held by ODI could potentially …show more content…
The financial status is also properly prepared, because ODI raised an additional $200,000 through venture capital and held the patent for the technology valued at $103,000 and the company was free of debt.
As soon as ODI start to penetrate to the market, it will face the competition with the traditional debeaking business, which provides a conventional and cost-effective way of reducing the some effects of cannibalization, although it causes trauma to the bird, retards egg production, and requires more feed as compared to ODIs solution. There could be an other entrants such as a large agricultural supply fimrs which find a way around ODIs patent and can quickly develop a competing product.
The customers for ODI are various size of the chicken farms. In 1974, 80% of the 440,000,000 laying hens in the United States were housed on 3% of the known chicken farms. Recent trends indicate that small farms are disappearing at a rate of 25% annually and that the nature of the customer is changing from being a small, family-owned business to larger commercially oriented one. The overall chicken population is predicted to grow at a Compounded Annual Growth Rate (CAGR) of just about 1% from 1975-79. The South Atlantic region is the largest in terms of chicken population and accounts for approximately 22% of the