Team:Alberta-North-RBI E/ExitStrategy

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==Exit Strateies==
 
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First of all, the exit strategy is applicable for several special cases, in which we should cause great change in production
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==Exit Strategies==
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Planning an exit strategy plays a key role in determining the strategic direction of a business opportunity. It is essentially protecting the value of the business in the event of several special cases. Our exit strategies are matched to the characteristics of the business and market, ultimately improving our probability of success.  The potential hurdles of our business opportunity have been outlined as either <html><a href="https://2012e.igem.org/wiki/index.php/Team:Alberta-North-RBI_E/ProcessHurdleBus">process-related</a></html> or <html><a href="https://2012e.igem.org/wiki/index.php/Team:Alberta-North-RBI_E/FinanceHurdleBus"> finance-related</a></html>. If we are not able to overcome these hurdles, the following exit strategies will be considered:
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1. Severe entry barrier
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=== Product Shift ===
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In the event that we cannot produce the projected amounts of the target compounds, or are unable to enter the market because of regulatory policy or entry barriers we will perform a product shift. This would include producing another product can be made using the same operating line. Glucose can be used as a raw material for sustainable production of biofuels and other existing industrial chemicals. This strategy enables Upcycled Aromatics to remain a free-enterprise.
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2. We cannot get approval from the pharmaceutical industry, and our company is no longer profitable
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=== Market Diversification ===
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This strategy helps create a direction for business growth in the event that we are not capturing the desired market share. We plan to expand our customer base to remain profitable. For example, since there are many undeveloped areas in the world where people cannot afford Tamiflu® from Roche ( the company controls the market), we can sell our product at a much lower price since the profit margin on shikimic acid is quite significant. This method is applicable especially when entry barriers mean our company cannot sell our product,  but we receive regulatory approval.
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3. The price has dropped to a low enough level during a long enough time that we cannot sustain the production any more
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=== Merger ===
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===First method: product shift===
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'''Upcycled Aromatics''' will consider a merger in the event that combining businesses can create more value as a single company. Opportunity for a joint venture may exist upstream our downstream of our processing facility. Ideally the merger would enable our facility to cut costs and increase profits through structural and operational advantages. This strategy can be seen as enhancing the future worth of our business.
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We can produce another product which can be made utilizing the same operating line ( e.g bio butanol and some other biofuel.
 
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===Second method : finding more profitable markets===
 
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Since there are many undeveloped areas in the world where people cannot afford the Tamiflu from Roche ( the company controls the market), we can sell our product at a much lower price since shikimic acid is quite profitable. This method is applicable especially when entry barrier meets or companies cannot sell the product but get the FDA approval
 
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===Third method: merger & acquisition===
 
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We can sell our company if the price drops down to an unacceptable level during a long enough time that we cannot sustain our production any more
 
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Latest revision as of 22:25, 27 October 2012


Contents

Exit Strategies

Planning an exit strategy plays a key role in determining the strategic direction of a business opportunity. It is essentially protecting the value of the business in the event of several special cases. Our exit strategies are matched to the characteristics of the business and market, ultimately improving our probability of success. The potential hurdles of our business opportunity have been outlined as either process-related or finance-related. If we are not able to overcome these hurdles, the following exit strategies will be considered:

Product Shift

In the event that we cannot produce the projected amounts of the target compounds, or are unable to enter the market because of regulatory policy or entry barriers we will perform a product shift. This would include producing another product can be made using the same operating line. Glucose can be used as a raw material for sustainable production of biofuels and other existing industrial chemicals. This strategy enables Upcycled Aromatics to remain a free-enterprise.

Market Diversification

This strategy helps create a direction for business growth in the event that we are not capturing the desired market share. We plan to expand our customer base to remain profitable. For example, since there are many undeveloped areas in the world where people cannot afford Tamiflu® from Roche ( the company controls the market), we can sell our product at a much lower price since the profit margin on shikimic acid is quite significant. This method is applicable especially when entry barriers mean our company cannot sell our product, but we receive regulatory approval.

Merger

Upcycled Aromatics will consider a merger in the event that combining businesses can create more value as a single company. Opportunity for a joint venture may exist upstream our downstream of our processing facility. Ideally the merger would enable our facility to cut costs and increase profits through structural and operational advantages. This strategy can be seen as enhancing the future worth of our business.



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