Strategic Scenarios for Biocotes Business Expansion - Case Study Example

The paper “Strategic Scenarios for Biocote’s Business Expansion" is an affecting example of a case study on business. Biocote had faced various financial and logistical problems in its operations since its conceptions. Despite having an able team that included an engineer and an entrepreneur, the business was not able to operate at an optimal level. Biocote also had a viable business opportunity, which needed a better implementation plan to succeed.

The company could adopt various strategic scenarios to implement their business idea of selling microbial paints. However, the company would need to understand the problems that it was facing first after which it would be able to determine which strategic plans were to be given priority. Market penetration, access to funding, product development and market research were the most important things that Biocote needed to do to perform better in the business. This is because the company had been operating for over a decade but had not achieved any of these issues in a satisfactory manner. Subsequently, resolving these issues would improve business operations significantly.

Biocote needed to implement strategic planning, tactical planning, and operational planning all at once. Access to finance and funding was the most crucial factor of all.  The lack of financing had stalled Biocote’s operations for a long time. Although funding was an important concern, it was also not an easy one as strategic planning was necessary.

Biocote had secured a patent to its microbial paint technology. It was at a vantage point as compared to other manufacturers and competitors in the paint business. Biocote could license or assign the patents to its competitors to obtain the funding necessary for the operations management because it lacked the funding to finance its operations. A long-term license or assignment could offer the company sufficient funding to expand its activities. Biocote had the option of merging with other firms. Similarly, it could also have opted to be acquired by well-established firms that would ensure that it accessed a global market; hence, have a better market position.

Biocote further needed to implement strategies of penetrating the market entirely. Remarkably, the firm had restricted itself to medical and healthcare institutions only. There was stiff competition in these market segments, which was among the reasons why Biocote could not obtain substantial sales. Biocote could implement short-term strategies to penetrate unexploited market segments in the region to cope with the competition.  The various strategic measures could be applied to enhance market penetration. These include altering the product’s design, establishing customer loyalty in acquired market segments and adopting appropriate marketing strategies.

Biocote needed to carry out product development to enhance the quality of their microbial paint. The paint was not good enough according to Harry, who was an engineer and a consultant on paints. This had been shown by the test results. The product had been introduced into the market with these defects. These defects were capable of causing the company losses from lost revenue. They also had the capacity to cause civil liability for breach of consumer rights. The defects had to be addressed urgently to enhance the expansion process.

Biocote also needed to conduct thorough market research to determine why its product, which had been in the market long enough was not doing well. Additionally, the firm needed to understand the reasons behind the dismissal of their partnership request to powder coating manufacturer after implementing one-year market research. Market research is a crucial way of determining the business market niches and Biocote needed to carry it out urgently.