Patented Cryogel Technology
Essay Preview: Patented Cryogel Technology
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QUESTION 1
STRENGTHS
Patented Cryogel Technology embedded within the product
The patented cryogel polymer technology which forms the base of this product is the only stable water-based hydrogel dermal delivery system currently on the market. Such technology, exclusivity and prestige confers onto eyeSlices® the ability to create a small monopoly for themselves within the niche market segment that they are targeting.
Pioneering in-house production process from a privately held company
The company has developed a unique and complex manufacturing process which is carried out in-house in a South African factory which mass-produces the product for local and global distribution. Furthermore, the company is privately-held, and does not need to seek approval from a large board of directors. This obviates the possibility of having their business strategy interfered with by internal influences purely concerned with the bottom line.
Intelligent segmentation of product into spa/retail sectors
The offering of two distinct product lines for the spa/salon industry and the retail industry respectively is indicative of clever segmentation of the market, while the price differential between the two products is befitting for the type of customer targeted – slightly more expensive in a salon environment (affluent customers) versus slightly more affordable in a retail environment (more middle class on-the-go customers).
First mover advantage
There are no other disposable eye care products that fulfil all of the product offerings functions at the same or similar price at which the product retails for, nor which incorporate patented cryogel technology. This confers onto eyeSlices® first-mover advantage – a most desirable position to be in given that it is easier to obtain the customers trust/loyalty if that company is the first and only company offering such a product. This results in the company not having to waste time trying to undo or outdo the acts of competitors also trying to occupy a favourable position in the customers mind.
Careful and calculated initial rollout plan
By launching initially to the South African market via a single distributor (Clicks), eyeSlices® are able to carefully gauge consumer behaviour and response to the product, allowing them to iron out any kinks before launching to the more lucrative, fast-paced and cut-throat international market.
WEAKNESSES
The entire business is based on a singular product
There is no diversification evident in eyeSlices®s product offering. There is only one type of product which focuses on one aspect of beauty – eye care. This leaves eyeSlices® with no other products nor revenue streams to rely on should a competitor develop a better or carbon copy of the product at a lower price. This has the propensity to send eyeSlices® into dire financial straits.
Contradictory product offering
The product purports to make its user feel pampered in just 5 minutes – however, the concept of pampering creates images of slow, sedate relaxation in a calm and relaxed environment