Case Analysis: Aegis Analytical Corporation’s Strategic Alliances

1316 Words Dec 26th, 2013 6 Pages

Aegis Analytical was a start-up, manufacturing process software provider, developing solutions for the pharmaceutical industry. The company was founded on managerial know-how, established by two co-founders with in-depth knowledge of the manufacturing domain and software know-how, developed their flagship product called Discoverant. Discoverant was a revolutionary product that offered a solution to highly complex problems in the manufacturing process of pharmaceutical companies. The software had the following features: it collected data during the production process, tracked failures and then analyzed the data to give sophisticated bases for solutions to managers. Aegis aspired to be the recognized leader in the process
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Value: The resources of Aegis enable it to exploit an external opportunity by developing an innovative product like Discoverant. The product offered data analysis within a few minutes, rather than the typical two-four weeks.
Discoverant was one-of-a-kind product, which provided Aegis with rarity as a source of competitive advantage. The product was user-friendly and didn’t require programming expertise to be used. Discoverant was a highly innovative technology which would change the way data is collected, analyzed, and turned into reports. Discoverant did not require the process data to be in single database. It provided connectivity links between disparate data sources and reports.
Imitability: The development of Discoverant required substantial financial investments: an initial start-up investment of $1.3 million, followed by $4.5 million, and $14.5 for completing their product. This was a barrier to entry, which makes the development of this product difficult to imitate.
Competitors: Aegis Analytical developed a product – Discoverant - that had no direct competitors. Efforts in this direction by competitors resulted in partial solutions like Mathsoft, MatLab, SAS, and others which offered analysis of already collected data, but not collection and streamline of the actual data.

To gain visibility and access to target customers, Aegis considered Strategic