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Commercialisation strategies for entrepreneurial firms -A case study at Layerlab AB

Leckner, Åsa (2004) MIO920
Production Management
Abstract
This master’s thesis deals with commercialisation strategies for entrepreneurial firms. The basis of
the work is a framework of investigation that incorporates a company’s internal and external
factors, crucial when determining an appropriate strategy. This framework of investigation is
applied on the case company Layerlab. Layerlab is an entrepreneurial company in the biotech
industry, aiming at commercialising a technology for analysing membrane-bound proteins in
existing surface-based biosensors. This technology is much coveted in the industry as it will
enable researchers to analyse this large group of important proteins in label-free biosensors
instead of using labelled or cell-based methods, which are both time-consuming and... (More)
This master’s thesis deals with commercialisation strategies for entrepreneurial firms. The basis of
the work is a framework of investigation that incorporates a company’s internal and external
factors, crucial when determining an appropriate strategy. This framework of investigation is
applied on the case company Layerlab. Layerlab is an entrepreneurial company in the biotech
industry, aiming at commercialising a technology for analysing membrane-bound proteins in
existing surface-based biosensors. This technology is much coveted in the industry as it will
enable researchers to analyse this large group of important proteins in label-free biosensors
instead of using labelled or cell-based methods, which are both time-consuming and expensive in
an already costly and lengthy drug development process.
The first part of the work describes different forms of commercialisation and factors that
influence the choice of an appropriate strategy. The second part presents the empirical results
when applying the framework of investigation on Layerlab and its environment. Ten in-depth
interviews with key personnel in instrument and biochip companies are performed to analyse the
competition and the value system in the industry.
The focus of this work is on the protein biochip market and particularly the biochips that are
used in SPR- (Surface Plasmon Resonance), PWG- (Planar Waveguide) and SELDI- (Surface-
Enhanced Laser Desorption/Ionization) instruments where Layerlab’s technology in the first
product development step, is applicable. To enter this market, there are some entry barriers that
will be difficult to surmount for Layerlab in a new venture with its limited amount of human and
financial resources. These are the protected design of the biochips and the costs of development,
production, marketing and sales departments. The complementary assets that are crucial in this
market are marketing and sales resources because of the huge amount of different technologies
that exist in the market. Moreover, the markets that are interesting for Layerlab are niche markets
and therefore it is important to have a global presence in order to stay competitive. All this
together makes a cooperation strategy, such as a strategic alliance or a joint venture the most
viable alternative for Layerlab.
The empirical research results in a recommendation where Layerlab first should increase the
value of its technology in order to appropriate the most of the potential return of its invention.
Layerlab must therefore, obtain a proof of concept in a customer-based environment. Then
Layerlab must demonstrate the value of its technology, which can be done by contacting
renowned researchers in academia or industry. They will be asked to employ the technology and
publish articles about their results in professional journal. Finally, it is time to choose potential
partners and to contact them. The objective of the cooperation must be determined, and might
be a result of the proof of concept-project. More value will be appropriated if the proof of
concept is successful because then the cooperation can involve only a near market collaboration
and less of Layerlab’s competencies and technology will be lost to its partner. (Less)
Please use this url to cite or link to this publication:
author
Leckner, Åsa
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
other publication id
04/5198
language
English
id
2007264
date added to LUP
2011-06-30 13:56:11
date last changed
2011-06-30 13:56:11
@misc{2007264,
  abstract     = {This master’s thesis deals with commercialisation strategies for entrepreneurial firms. The basis of
the work is a framework of investigation that incorporates a company’s internal and external
factors, crucial when determining an appropriate strategy. This framework of investigation is
applied on the case company Layerlab. Layerlab is an entrepreneurial company in the biotech
industry, aiming at commercialising a technology for analysing membrane-bound proteins in
existing surface-based biosensors. This technology is much coveted in the industry as it will
enable researchers to analyse this large group of important proteins in label-free biosensors
instead of using labelled or cell-based methods, which are both time-consuming and expensive in
an already costly and lengthy drug development process.
The first part of the work describes different forms of commercialisation and factors that
influence the choice of an appropriate strategy. The second part presents the empirical results
when applying the framework of investigation on Layerlab and its environment. Ten in-depth
interviews with key personnel in instrument and biochip companies are performed to analyse the
competition and the value system in the industry.
The focus of this work is on the protein biochip market and particularly the biochips that are
used in SPR- (Surface Plasmon Resonance), PWG- (Planar Waveguide) and SELDI- (Surface-
Enhanced Laser Desorption/Ionization) instruments where Layerlab’s technology in the first
product development step, is applicable. To enter this market, there are some entry barriers that
will be difficult to surmount for Layerlab in a new venture with its limited amount of human and
financial resources. These are the protected design of the biochips and the costs of development,
production, marketing and sales departments. The complementary assets that are crucial in this
market are marketing and sales resources because of the huge amount of different technologies
that exist in the market. Moreover, the markets that are interesting for Layerlab are niche markets
and therefore it is important to have a global presence in order to stay competitive. All this
together makes a cooperation strategy, such as a strategic alliance or a joint venture the most
viable alternative for Layerlab.
The empirical research results in a recommendation where Layerlab first should increase the
value of its technology in order to appropriate the most of the potential return of its invention.
Layerlab must therefore, obtain a proof of concept in a customer-based environment. Then
Layerlab must demonstrate the value of its technology, which can be done by contacting
renowned researchers in academia or industry. They will be asked to employ the technology and
publish articles about their results in professional journal. Finally, it is time to choose potential
partners and to contact them. The objective of the cooperation must be determined, and might
be a result of the proof of concept-project. More value will be appropriated if the proof of
concept is successful because then the cooperation can involve only a near market collaboration
and less of Layerlab’s competencies and technology will be lost to its partner.},
  author       = {Leckner, Åsa},
  language     = {eng},
  note         = {Student Paper},
  title        = {Commercialisation strategies for entrepreneurial firms -A case study at Layerlab AB},
  year         = {2004},
}