Strategic Market Choices for High-Tech University Spinouts: A Case Study of a Swedish USO Offering Bundled Technology for Animal Monitoring

Abstract

In today's society a technological revolution is taking place and one example of this is animal supervision which is beginning to move from manual methods to more technical monitoring solutions. Digital animal monitoring is a field under development and has attracted interest among both livestock owners and researchers. The technology includes for example integrated systems with cameras and GPS tags which enable more detailed and real-time data on animals' movement patterns and welfare.

The growing interest in digital animal monitoring creates new market opportunities for technology-oriented companies. These companies can originate from university research and are then called university spin-outs (USOs). However, USOs that develop technical complete solutions often experience difficulties in transforming research results into scalable business models. This can sometimes be explained by a lack of commercial market understanding and resources.

Against this background, the aim of this thesis is to describe and analyze a high-tech USO that offers bundled technology for monitoring animals and to provide suggestions for market-strategic decisions and priorities.

To answer the research question an abductive and iterative case study was conducted. The case study is based on a Swedish high-tech USO that wants to commercialize its business and achieve a sustainable business model with long-term profitability. Primary data was collected through eight semi-structured interviews with internal stakeholders, customers, and industry experts. It was also complemented with secondary data. The qualitative empirical material was analyzed using several theoretical models. These were. Business Model Canvas Value Proposition Canvas, Kotler's model for product levels, the theory of product–service systems, Vohora's model for USOs, and Ansoff’s growth matrix which together enabled an integrated analysis.

The study shows a technically mature but organizationally strained company. The revenues are generated through sales of a bundled offering consisting of trail cameras, GPS tags, and a subscription-based platform to four different customer segments. The potential for scaling is however limited by fragmented product development, limited capital, and a lack of a clear strategy. Mapping according to Vohora’s model shows that the company has not yet passed the threshold of sustainability, since it lacks both commercial and human resources. These results from the case study were then analytically generalized and led to conclusions and recommendations that can be applied to other companies in similar situations. The recommendations highlight the importance of focusing on profitable segments, developing the offering and the business model iteratively, adjusting the level of ambition to the company's resources and prioritizing stability over rapid expansion.

The case company is specifically recommended to focus on core segments in Scandinavia, prioritize targeted product development based on these segments, strengthen and adapt the communication around the value proposition and create internal clarity through a shared strategy.

• author: Östlund, Celia and Nilsson, Amanda
• supervisor: Ingela Elofsson
• organization: Department of Mechanical Engineering Sciences; Production Management
• alternative title: Marknadsstrategiska vägval för högteknologiska universitetsavknoppningar: En fallstudie av en svensk USO som erbjuder bundlad teknik för djurövervakning
• course: MIOM05 20251
• year: 2025
• type: H2 - Master's Degree (Two Years)
• subject: Business and Economics
• keywords: Animal monitoring, University spinout (USO), Bundling, Business Model Canvas, Value Proposition Canvas, product–service system, Vohoras model, Ansoff matrix.
• other publication id: 25/5320
• language: Swedish
• id: 9202161
• date added to LUP: 2025-06-18 12:19:10
• date last changed: 2025-06-18 12:19:10