Healthy growth for OTC Tech Background About us OTC Tech sells over-the-counter diagnosis products. The company was set up four years ago in Copenhagen, Denmark, by Anders Larsen, an engineer with a passion for the “mechanics” of the human body, and Ulla Hofmann, a research chemist with many years’experience in the pharmaceutical industry. OTC Tech was bom out of a personal experience. The need for a routine test entailed a week-long wait to see the family doctor, followed by a trip to the hospital for the test, and finally the results were received over the telephone. The whole process took three weeks. In the end, it just seemed that life would be easier for all concerned if patients had easier access to such tests. A start-up company making diagnostic test kits is looking for ways to grow its business OTC Tech Home | About us | Products | Research | Tests The use of home pregnancy tests is now very common, so why shouldn't other easy-to-use diagnostic test kits for a wide range of conditions be available for home use? There are many good reasons for people to take control of their own health, and OTC Tech can help by providing you with home-test kits. Our range of products includes a cholesterol test, diabetes tests and allergy testing. What problems do you think this new business might have selling its products? REVIEWING CURRENT PERFORMANCE Growth at OTC Tech has been consistent over the first couple of years, but a little slow. The company directors recently hired a consultant to help them decide how to develop the business. WAYS WE CAN ACHIEVE GROWTH AT OTC 1. Try to increase sales of existing products to our existing customer base. How can we increase the frequency of purchase ad maintain customer loyalty? 2. Diversify and start to sell new related products that potential customers currently buy from our competitors, e.g. home pregnancy tests. 3. Move into other areas of the industry, e.g. low-tech items, like blood-pressure monitors, or high-tech monitoring equipment. 4. Increase spending on R&D in order to develop and market new products. We could work on joint projects with a university or hospital research centre. 5. Find new distribution channels. Our products could be sold via new or emerging channels which might boost sales, e.g. e-commerce. 6. Consider overseas expansion. Which markets would provide most opportunities? For instance, the US is the world's largest market for medical products. 7. Outsource manufacturing to a country with lower labour and production costs, and focus the business on R&D, marketing and sales. 8. Form strategic partnerships e.g. with a company selling dietary products or herbal remedies. WRITING You are one of the OTC directors. After reading the report on your left, out of the eight options presented, choose two of them and write an email to the consultant explaining why you think they are the best for the company.
