1-Describe Sydney IVF’s business strategy: What are the main goals? Who is the primary customer? What drives innovation?
After watching numerous rejections of patients within the hospitals for the vitro fertilization procedure due to the lack of capacity, the business idea to establish a facility for treating outpatients came into the mind of Dr. Robert Jansen. Dr. Robert who was immensely fascinated by the field of reproductive endocrinology wanted to become the best in the field. Along with the technical support of Dr. Jock Anderson, he started his venture from one lab and four employees. The business strategy of Sydney IVF was based on being the top lab-based fertility provider.
As shown by Dr. Robert, IVF had its goals predefined. Still, it works to achieve its goals in three areas. Firstly, it needs to one of the best in science-based knowledge regarding their field. They need to know their field inside out. It is done by investing majorly in research-based innovations. Conducting of research to improve technologies and processes in the field of vitro fertilization procedure is one of the goals. It is depicted from the development of portable incubator. Secondly, their business model is immensely dependent on their relationship with the doctors and their patients. Sydney IVF strongly believes and implements on having a transparent, honest, and clear relationship with its patients. The business model of Sydney IVF is very exceptional in this respect that it needs to have clear tasks and defined responsibilities. It is very crucial to its business model as the dealing with embryos are very risky and needs a lot of care. The primary customers of Sydney IVF are the independent doctors. The patients cannot directly contact Sydney IVF. They have to be referred by their physicians. So, the end consumers are the patients having problems with their fertility and looking for vitro fertilization procedures. However, independent doctors play a critical part. The relationship of the patients with Sydney IVF is very important to them. They do not tolerate any misbehavior with their patients. The need for providing satisfactory results for their patients is one of the many reasons which drive innovation at Sydney IV. Its thirst to gain more knowledge in its fields, its staff’s obsession to do best, drives them to innovate and find new better ways for their patients (Simons, Rosenberg and Kindred).
2-How is the strategy for the Stem Cell business different?
The division of Stem Cell has the objective of using human embryos for the production of human embryonic stem cells for the aim of commercial sale. The division is different in its business strategy as it targets industrial customers. The research in stem cell is said to have the potential of providing cures for the diseases like Alzheimer’s, diabetes, Parkinson’s, etc. It can also be used for the tissue regeneration and use in transplants, nerve injuries, and spinal cord tissue regeneration. However, at the moment, Sydney IVF is focusing on driving its division business strategy around using stem cells for orphan genetic diseases and specifically in single gene diseases like Huntington’s disease. The company would offer the pharmaceutical companies to develop drugs for orphan genetic diseases. By using the embryos from Sydney IVF, the abnormal stem cells can be used by pharma to develop drugs which they could not have done earlier. The company in 2007 sold six lines of stem cells for about AUD 1 million to ES Cell International. Moreover, it also sold disease-affected stem cells to a foundation for helping the researchers of Huntington’s disease. The business strategy, thus of this division is quite different as compared to others as the company is trying to build a business around something which has future business potential but is not yet present. With the uncertainty of the proven market, its business strategy is different from the other two divisions (Simons, Rosenberg and Kindred).
Work Cited
Simons, Robert, Kathryn Rosenberg and Natalie Kindred. “Sydney IVF: Stem Cell Research.” Harvard Business Review (2009).
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