Bergerac Case Study

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Introduction Bergerac System is a company that produces diagnostic instruments for animal care. In July 2010, Ian Wyckoff, CEO of Bergerac System, got feedback from a group of veterinarians. The feedback reminded him that Bob McCarthy, the director of Bergerac’s Planning Department, had provided him an analysis report about OmniVue. The report discussed whether Bergerac should build a cartridge fabrication on their own or via external acquisition. Because Bergerac had a growing trend for demand, but limited resource would delay the production in present competitive market, Wyckoff had to make a decision immediately. External Analysis In 2010, veterinary spending was expected to be $13 billion in the United States, and there was an…show more content…
The plastic source is from oil; the oil price is variable and has a fluctuating trend. It also depends on petrochemical to transfer from oil into plastic. Bergerac System’s reagents came from a dozen third – party chemical suppliers, but the injection – modeled plastic parts only sourced from two suppliers: GenieTech and Elsinore Plastic. These two suppliers met with competitive and fragmented market with very low margins. They had little buying power and depended on petrochemicals as a key input. However, GenieTech provided over three quarters of Bergerac’s cartridge needs, and had friendly business relationship with Bergerac that accounted for 50% of Genie Tech’s revenue. Elsinore Plastic shared one quarters of Bergerac’s plastic demand, which would come up for renegotiation three weeks later. In addition, Bergerac had a small direct sales force of 20 reps, and sold through a network of veterinary distribution. Those all factors as showed above had contributed challenges for the company. SWOT & Challenge a) Strengths: The OmniVue was the competitive product of Bergerac System. The OmniVue enabled veterinarians to run a wide range of tests on their animal patients. It also delivered accurate results in less than 10 minutes. It was easy to use, requiring no training work, and had small physical footprint. The price of the OmniVue equipment and the cartridge was lower than Abaxis system. “Furthermore, it featured self – calibration
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