Optical Distortion Inc Case

Optical Distortion Inc Case

1. What characteristics of the ODI contact lens are likely to make it appealing or unappealing to different types of chicken farmers? [If desired, this question can be rephrased to include a specific reference to literature on diffusion of innovations.]

Characteristics of the ODI contact lens to make it appealing are:

1) Significant cannibalization reduction – reducing bird’s eye depth perception and changing in red the birds environment which lead to alteration of their appetites and ability to act out its aggression.

2) Trauma elimination

3) Feed cost reduction

4) Time and cost saving

Characteristics of the ODI contact lens to make it unappealing are:

1) Difficult to get a deep penetration into the market

2) Manufacturing cost of the hydrophilic polymer

3) Farmers resistance to adopt new technology

4) Profitable business only for medium and large farms

5) Lenses could not be reused

2. In what geographic areas should ODI focus its efforts?

The best profitability is in Pacific Region 27% then in South Atlantic 25%, West South Central 15%, East South Central 10% and the lowest is in New England 3% and Mountains 1%. ODI should focus at first to California then to Texas and after West South Central area need to focus on Florida, Georgia, North and South Carolina which is East South Central area.

3. On what market segments (in addition to geographic) should ODI focus its effort?

In geographic terms California is the largest market. Followed by Texas, Florida, Georgia and North and South Carolina. The issue is that ODI is a start up with capital of only $ 200K. This might call for a more focused rather than a broad roll out. In terms of farm size it is logical to do large farms and then medium farms.

Larger farms are:

1) better use of sales force

2) savings are greater for larger farms

3) larger farms are more like agribusinesses and can be more easily educated...