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Evaluate ACIs identified venture opportunities using Bhides ideas from How Entrepreneurs Craft Strategies
That Work and Moores ideas about the ecology of competition in Predators and Prey. How do these approaches
compare with the market evaluation criteria ACIs consultant used? Did you reach a similar or a different
conclusion?
a. Evaluating the case against Bhides ideas:
i. Screening out Losers: PARTIALLY ALIGNED. Although ACIs consultants ran through the
different proposals of ideas, they were not fully analyzed to weed out losers. A significant effort
was invested in digging deep into every opportunity. This is partially due to the lack of a clear
objective by ACI i.e., they were looking for something that will work.
ii. Gauging Attractiveness: ALIGNED. Health Advances extensive research of all opportunities
helped cover the attractiveness of each opportunity from different fronts. The End Consumers
requirements were collected as well as the financial viabilities/costs were discovered.
iii. Parsimonious Planning and Analysis: NOT ALIGNED. There was not evidence of ACI being
frugal in their planning at least not by intention. The frugality was driven more by their financial
situation.
i. Integrating Action and Analysis: PARTIALLY ALIGNED. ACIs actions were based on the
analysis of data collected by Health Advances, but not completely. While they spent time on
evaluating the medical effectiveness other concerns like Recommended Use, Hours of Efficacy,
etc. were not analyzed.
b. Comparing the approach to Moores Ecology of Competition: Not Aligned.
i. ACIs consultant was not thinking of any radical or revolutionary position for the product. It was
looking to position the product as an incremental product. This conservative approach was
primarily due to FDA approval process.
ii. The strategy here was to work with partners, not to compete against them.
iii. Customer value proposition was one area where some research effort was invested, but the
2.
Criterion
Sutures and
Staples
Criterion
Weight
(W)
Criterion
Value
Score
(S)
Market
size
Market
Concentrat
ion
Infection
Rate
Morbidit
y&
Mortalit
y
$1.9 B
85%
Moderate
High
Low
Moderate
High
10
10
10
Medical
Regulato
Manufacturabi
Consens
ry
lity
us
Hurdles
Over
ll
Rati
g
Central
Catheters
Adhesive
Bandages
Burn Wound
Dressing
Foley Catheters
Weighte
d Score
(W X S)
Criterion
Value
Score
(S)
Weighte
d Score
(W X S)
Criterion
Value
Score
(S)
Weighte
d Score
(W X S)
Criterion
Value
Score
(S)
Weighte
d Score
(W X S)
Criterion
Value
Score
(S)
Weighte
d Score
(W X S)
80
40
25
30
35
$1 B
50%
Low
High
High
Moderate
Moderat
e
10
10
64
16
30
60
35
40
$730 M
85%
Low
Low
Low
High
Low
10
10
10
48
40
70
80
$220 M
50%
High
High
High
High
Low
10
10
10
10
10
16
16
50
30
60
70
80
$155 M
80%
High
Low
Moderat
e
Low
Moderat
e
10
32
50
30
40
224
250
252
322
170
a. Based on the above data, Burn Wound Dressing is the best lead application. We agree with consultants
choice.
b. The primary reason for choosing this would be the relatively low FDA approval hurdles and high ranking
3.
4.
revenue.
The founders of ACI face a difficult choice at the end of the case. Which of the strategic alternatives would you
recommend? Why? Are there other strategic options available?
a. The strategic alternative that ACI has is to diversify. Since multiple applications have similar
requirements, we dont see any limitation with respect to investing on the top three applications.
b. The other strategic direction would be positioning. At the end of the case, ACI is still not sure how to
position their product. As a revolutionary new product or an incremental design. They can start off as
an incremental design, but based on their learning upgrade and position their next product (or another
application) as a revolutionary design to gain market share.
c. The last strategic option is to invest in competitive approach. Based on the case, they can either
work with competitors and position their application as a complementary product, or compete with
other products in a standalone basis. ACIs approach is not clear since they work with the product as a
5.