A “Blue Ocean” Strategy for
AstraZeneca
Group 5:
Emily Heather-Maher
Vu Hoang
Rui Maricato
Deniz Morali
Abbas Omaar
Hui Erh Tay
(Word Count: 4151)
Contents Page
1. Introduction
2. Current Red Sea Environment
2.1 Porter’s five forces
2.2 SWOT analysis
3. Breakout Strategy
3.1 Rationale for development
3.2 The Blue Ocean concept
3.3 Competency gaps
3.4 Resource requirements/Corporate structure
4. Key developmental steps and broad financial forecasts
4.1 Key development steps
4.2 Broad financial targets
5. Sustainability and CSR
6. Conclusion and Evaluation
7. References
8. Appendix
1. Introduction
The emergence of pharmaceutical science can be dated back to the 19 th century. The
discovery and development of drugs as well as the study of the effect on
pathological systems, ultimately led to the rise of the pharmaceutical industry.
Today, it is extremely competitive and there is overwhelming competition from
thousands of big pharmaceutical companies. As a major player in this industry,
AstraZeneca must overcome this competition by employing a breakout strategy (also
known as a “blue ocean” strategy) to enter an uncontested market space through
the creation of new demands (Kim and Mauborgne, 2005).
This report firstly analyses the current competitive environment of AstraZeneca in
the pharmaceutical industry and examines the rationale for development, the
breakout concept and its key milestones.
2. Current Red Sea Environment
The pharmaceutical industry’s growth has reached a plateau, causing the ferocious
competition and making it a typical example of a “red ocean”. There are more than
6,000 pharmaceutical companies in the UK and the US currently competing for the
existing market space (Wang, et al, 2001 and MantaMedia Inc, 2013). The major
challenge facing the industry today is the expiration of blockbuster drugs’ patents.
Also, the cost of research and development (R&D) is growing disproportionately to
its results (Kollewe, 2011), due to the decline in the number of drugs in late-stage
development.
Despite this strong competition, AstraZeneca is showing some growth, evidenced by
last year’s rise in share price by almost 3% (Elder, 2013). In 2012, AstraZeneca’s sales
reached $28 billion, of which 23% came from Europe and 21% from emerging
markets (AstraZeneca, 2013a). The company develops specialised prescription drugs
in six areas (neuroscience, oncology, infections, cardiovascular & metabolic,
respiratory and gastrointestinal). To further assess the current competitive position
of AstraZeneca relative to its industry, Porter’s Five Forces and SWOT analyses were
carried out.
2.1 Porter’s Five Forces
Figure 1 details the Porter’s Five Forces framework, which was used to assess the
profit potential of AstraZeneca. A rating of 1-5 was given to each force to determine
where the strength of the business lies and the overall power of the company
(higher scores indicate higher power of AstraZeneca).
Barriers
to Entry
Suppliers
Competitive Rivalry
Buyers
Substitutes
Figure 1: Porter’s Five Forces framework (Porter, 1997)
a) Threat of new entrants - 4
There are high barriers to entry into the pharmaceutical industry due to high R&D
cost and initial capital requirements. Other factors, like presence of numerous
reputable brands, patents and licenses, and the need for established distribution
network, also affect new entrants.
b) Supplier leverage - 4
AstraZeneca has over 50 suppliers, including large IT vendors (King, 2010). It is
currently restructuring and managing development programmes for its suppliers to
improve relationships, which suggests that they are becoming more interdependent.
c) Customer leverage - 4
As AstraZeneca manufactures numerous specialised drugs, they have leverage over
their customers. However, competition decreases this power. In the US and
emerging markets, AstraZeneca has high power over individual hospitals and
pharmacies. Conversely, in Europe, the largest clients are the national health
systems, and the company loses its power in a monopoly-like market.
d) Threat of substitutes - 4
The major substitute for AstraZeneca’s drugs is complementary and alternative
medicine (CAM), which consists of a wide range of treatments such as homeopathy
and acupuncture (NCCAM, 2010). However, evidence of CAM’s safety and
effectiveness lacks scientific validation and is mostly based on personal experiences,
unlike AstraZeneca’s scientific approach with strictly regulated experimental
research and clinical trials. Therefore, CAM does not pose a high threat for
AstraZeneca.
e) Competitive rivalry - 3
Some of the key competitors of AstraZeneca include Amgen, GlaxoSmithKline,
Genentech and Novartis, to name a few. Although AstraZeneca is ranked highly (8th
in the industry) (Forbes, 2013), the top 20 companies are equally powerful, meaning
that competition is fierce for the limited profit pool.
A total score of 19/25 suggests AstraZeneca has moderate power in the industry.
Specifically, it has power over its customers and is relatively safe from new entrants
because of high entry barriers. Unfortunately, it faces high competitive rivalry.
Therefore, by implementing a blue ocean strategy, AstraZeneca will be diversifying
and reducing the threat of mainstream competition.
2.2 SWOT Analysis
Strengths
- Specialises in cardiovascular,
neuroscience, oncology, gastrointestinal,
infection & respiratory diseases
- Strong R&D department
- Good commercial presence in emerging
markets, which also means high global
coverage
- Several products with global sales of
over $1bn
- Global reputation and established
networks in the pharmaceutical industry
Opportunities
- Leverage on its strong existing presence
in emerging markets to further expand
into more emerging markets, like SouthEast Asia and Africa.
- Invest in medical care for ageing global
population
- Leverage on its strong R&D to develop
new products
Weaknesses
- Focus is only on 6 core competencies;
has no generic or over-the-counter drugs
- Failure in a few late-stage clinical trial
drugs
Threats
- Increasing competition in the industry,
with more companies developing more
effective drugs
- Patents expiring: Revenue lost to sale of
generic drugs from other companies in
3rd quarter of financial year1
Table 1: SWOT analysis of AstraZeneca in the pharmaceutical industry
The SWOT analysis above provides the basis for development of a breakout strategy.
Our blue ocean strategy will enable the company to extend its competencies by
developing presence in another industry, which both helps to overcome its
weakness of having too few competencies as well as reducing the relative threat of
patents expiring and leveraging its strong commercial presence in emerging markets.
Moreover, armed with a global reputation and a high investment in R&D,
AstraZeneca is well-positioned to develop innovative solutions for today’s problems.
3. Breakout Concept
The analysis indicates that AstraZeneca needs to enter a new market; by leveraging
the ‘big pharma’ umbrella of drug substances to manage the crops’ health by
developing agrochemicals (pesticides, herbicides, fungicides and insecticides) and big
data and drone technology. This section discusses the rationale for development, the
project itself, competency gaps and resource requirements/corporate structure.
1
Profit fell by 31% as sales of a cardiac drug failed to fend off competition from generic drugs (Connolly, 2013)
3.1 Rationale for development
The rationale for developing this blue ocean strategy is based on research of four
industries: pharmaceutical (above), agriculture, big data and technology.
3.1.1 Agriculture
Agriculture, in the context of plants and crops, is another ‘red ocean’ industry. As the
world population is increasing exponentially1, the demand for food is likely to double
by 2050 (Falk and Rinard, 2011). In response, farmlands are expanding throughout
the world2. Additionally, there has been a shift in European farms from numerous
small-sized farms to few large-sized farms3. The main purpose of these bigger ‘super
farms’ is to control food prices from rising too high (Jowit, 2012). The development
of ‘super farms’ introduces many challenges to the agriculture industry. The
difficulties are lack of effective tools to deliver water and agrochemicals over large
areas and of efficient data recording and management systems. Providing services to
solve these problems proposes an attractive business area considering the steady
increase in total income in agriculture industry from 2000 to 2009 (UK Agriculture,
2013).
3.1.2 Big Data
Big data refers to the use of analytics technology for the interpretation of large
datasets to produce information (that would otherwise not be available within a
reasonable time frame) and predictions that can support decision-making (Ward and
Barker, 2013). It is a fast growing field, since both data-gathering tools and the
analytical capabilities of computers are evolving rapidly (Haggar, 2011). The
availability and transparency of information has increased due to globalisation and
the widespread accessibility to the Internet. The amount of data that can be stored
and analysed is also continuously growing and therefore more information is being
derived as well as more and improved predictions leading to better decisions.
Big data is applied in diverse industries (Manyika et al, 2011), but its application to
plant agriculture is still in its infant stage (O’Brien, 2012). It is currently used mostly
to assess the impact of weather conditions (CrunchBase, 2013), but much more can
be done.
1
The world population is predicted to reach 40 billion people by the end of this century (Barnes, 2013)
Recently, Ukraine signed a fifty-year ‘land grab’ agreement to lease three million hectares of land to China, an
area equivalent to Belgium or Massachusetts, for growing crops (Spillius, 2013).
3
The average farm size in France increased by 39% over the past 4 decades. During this time, the number of
farms in France also decreased by over 69% (Momagari, 2013)
2
3.1.3 Drones
Unmanned aerial vehicles, commonly known as drones, have risen from being
essentially unknown entities to commanding great significance across many
industries. Military bodies have been the single biggest users of drones with
development stretching as far back as the World War I (Miller, 2013). In this context,
drones have been mostly employed for the purposes of achieving foreign
surveillance and monitoring. More recently, civilian use of drones has flourished, as
exemplified below.
Despite the declining costs of drones, their performance is increasing (Bradshaw,
2013). They can easily be controlled from a computer or mobile device and can
follow pre-defined routes through built-in GPS (Rao, 2013). Excellent surveying
capabilities have allowed the charity Coolearth to use drones to monitor the
presence of endangered primate species across South East Asia (DiNapoli, 2012).
These drones are able to fly for a period of 20 minutes and can achieve a range of
20-25km. Upcoming models are expected to have capabilities that enable drones to
travel a distance of roughly 100 hectares during each flight (DiNapoli, 2013).
Many multinational corporations are exploring the use of drones in product delivery
operations. For instance, Dominos Pizza, Google, UPS and Amazon have all publicly
announced their efforts to incorporate drone technology into the delivery of goods
sold to consumers (Pepitone, 2013; Griffiths, 2013 and BBC, 2013)
Currently, in the agricultural field there are tests being performed with drones which
show promise (Sharma, 2013 and Anderson, 2013).
3.2 Blue ocean strategy
The proposed breakout concept is to depart from the red ocean of the
Pharmaceutical industry and create a blue ocean by taking advantage of
opportunities from the overlapping of the agrochemical, plant agriculture, big data
and drone technology industries. The strategy has been named “D-cubed”, and
focuses on “Drugs, Drones, Delivery”. It targets unexplored markets that are distant
to that of AstraZeneca’s current markets, as well as those of its current competitors.
D-cubed is a service for farmers to survey crops, identify plant diseases and deliver
specific drugs precisely. Data collected in the process will be studied and eventually
sold to governments and other interested organizations.
Figure 2: Overlap of four industries to develop the blue ocean strategy for AstraZeneca
Figure 2 explores the overlap of the industries in question in more detail.
Pharmaceuticals are connected to agriculture through the production of agrochemicals, agriculture uses big data in order to improve the management of crops,
and a good way to gather agricultural data is the use of drones. Additionally, drones
provide a precise delivery system for the agrochemicals, ultimately increasing the
productivity of agriculture as a whole. Following this rationale we are able to label
this as a truly blue ocean.
Dcubed
START
Drones
Big
data
AgroChemical
Government/
organisations
Farms
Figure 3: Overview of the D-Cubed Business Model
Figure 3 above describes the project in full detail.
Firstly, drones will be used to monitor the crops regularly, measuring several useful
parameters (such as temperature, nitrogen level and growth rate) and gathering
large datasets. This is a process that is currently done by plane, making it relatively
expensive and less accessible to smaller farms or those located in emerging markets.
Farmers can use the data to understand the growth of their crops and improve their
farms. The data can also be used by AstraZeneca to detect patterns to guide and
improve agrochemical research. Finally, governments and agricultural entities can
buy the data (the service contract requires farmers release the data gathered to
AstraZeneca) to study and analyze patterns in agricultural systems in specific
geographical regions.
Drones can be customized for the deployment of AstraZeneca’s agrochemicals for
specific plants. This means that a drone can fly over a field, identify plants that suffer
from pre-defined symptoms, such as fungal infections (Sharma, 2013), and deploy
treatment accordingly. This approach is more selective and economical compared to
the current approach of uniformly spraying the whole crop, without distinguishing
between healthy and unhealthy plants, which contributes to drug-resistance.
This project will initially target the European markets, as AstraZeneca is familiar with
the political and economic environments of these markets. Moreover, the EU
Commission (2013) has reported that almost 50% of the EU’s territorial land is
dedicated to farming. Following that, D-cubed will be launched in Asian markets.
Farmers in South Asia make up approximately 60% of the total world population
(WorldBank, 2012), which suggests that their livelihood largely depends on
agriculture2, and implies that they will value the increase in cost-effectiveness of
agriculture that D-cubed guarantees. In the long-tem, the company should strongly
consider launching across African regions.
3.3 Competency gaps
Besides the challenges facing every blue ocean (such as lack of marketing knowledge
in a new industry) there are three main competency gaps that D-cubed faces. These
are gaps in plant pharmaceuticals, drone technology and big data, which need to be
addressed before implementing the proposed strategy.
3.3.1 Pharmaceutical gap
AstraZeneca has a well-known, extensive drug portfolio focused on improving
patients’ lives. However, research and manufacture of drug products for agriculture
is a new area full of challenges for the company. In order to implement the D-cubed
strategy, AstraZeneca needs an agrochemicals sub-department of R&D. Human
capital is key, as scientists’ experience and knowledge of crops and plants will be
invaluable when creating innovative agrochemicals.
3.3.2 Drone technology gap
AstraZeneca lacks the knowledge to produce, maintain and operate drones.
Additionally, though the drones have been used in military for a long time, the
application of commercial drones to agriculture is only just being explored, and there
is still much to be learned. A customized drone device for agriculture is key to the
2
The percentage of agriculture contribution to annual GDP in South Asia is significantly high,
averaging 17% in South Asia as compared to 2% in the EU (WorldBank, 2013), therefore suggesting
the higher importance of agriculture in the South Asian countries.
development of this strategy. Also, a team of staff to deal with the devices’
operation, maintenance and technical problems will be required.
3.3.3 Big data gap
AstraZeneca currently manages big data to a limited extent (SAS, 2013) as it informs
drug research and other operations. However, this process is limited and outsourced
(it is mainly done by consulting companies Dotmatics and HealthCore [Dotmatics,
2013 and Flinders, 2011]). Specific analytical technology must also be developed to
interpret agricultural datasets, of the type that will be collected by the drones.
3.4 Resource Requirements and Corporate structure
3.4.1 Pharmaceutical
AstraZeneca needs an immediate portfolio of agrochemicals, yet the discovery and
development of a new agrochemical, like any new formula, is a long process,
normally more than ten years. A possible solution would be to buy off-patent drugs
instead, however many of these drugs are have reduced effectiveness because of
the on-going pesticide resistance.
Currently mergers and acquisitions (M&As) play an important role in AstraZeneca’s
corporate strategy and so it is proposed that it acquire Nufarm, one of the leading
manufacturers of crop protection products (AgroNews, 2013), as an initial step to
gain access to and knowledge of the agriculture industry. The company’s portfolio
has a wide-range of agrochemical products including herbicides, fungicides,
pesticides and insecticides. Also, the its financial performance has been very stable,
with the steady increase in net income from 2010 to 2012 (Nufarm, 2013b). Nufarm
also comes with a pre-existing client list, granting faster access to consumers at the
product launch of D-cubed and a population with whom to develop and carry out
the beta-testing of the product.
The acquisition acts as a powerful leverage for the initial stages of the project, by
providing a rapid means of acquiring drug development pipeline and overcoming
resource constraints in internal development. This is known as symbiosis integration.
The autonomy of Nufarm, particularly the structure of its R&D department, will be
preserved while strategic capability between the organisations is transferred.
There is, however, a possibility of destroying value rather than creating during an
acquisition, which implies a need for careful consideration and management of the
integration. Another challenge faced by AstraZeneca is the significantly expensive
cost of an acquisition. Considering the long and costly process of drug discovery and
development, the benefits of a pre-formed R&D and existing drug portfolio offered
by Nufarm outweigh these costs. In long term, the profit generated by D-Cube will
pay back the initial capital investment.
3.4.2 Drones
As mentioned above, AstraZeneca currently does not have the capability to develop
drones, so a significant part of D-cubed will be the commissioning the services of a
company that specializes in the production of drones. To this end, we propose
establishing an exclusive deal with 3D Robotics, the world’s leading company
producing drones. The company will take on the role of supplier, selling drones
exclusively customized for AstraZeneca. A crucial element of this deal will be that 3D
Robotics will have the responsibility of maintaining the drones after sale. The drones
can easily be piloted by anyone using a GPS autopilot or a smartphone application;
however, if the need arises, staffs can be hired to assist on-location or remotely.
Concerns about air traffic control regarding privacy and safety do not apply to this
business model, as the drone will only fly over private farmland and at a maximum
altitude of 500 meters.
3.4.3 Big data gap
The processing and analysis of big data is a key component of the business model,
hence the logical approach to this gap would be to acquire big data management
capabilities directly. However, this business area is highly specific and too far from
AstraZeneca's core domain. There are big data consulting companies that can play a
role, such as Dotmatics (with whom AstraZeneca already partners) or Ag Informatics
that specializes in agricultural informatics.
The establishment of a joint venture with an existing big data company is the
solution for this gap, as it will be a way to share technologies and skills (drug
development and big data processing) that complement each other in the blue
ocean, as well as sharing the investment and risk, hence prompting a reliable
commitment from both parties to the venture.
Additionally, all parties will agree that data gathered by the drones will remain
strictly the property of AstraZeneca and will not be accessed by 3D Robotics or
shared by the clients.
4. Key developmental steps and broad financial forecasts
4.1 Timeline
There are three broad phases to the launch of D-cubed namely further research,
beta-testing and product launch. Figure 4 below gives an overview of the project
timeline over a period of the first five years.
Test consistency
and accuracy of
drones in farms
Development of
customised drone
by D-cubed
Discounted trials
for some farmers
across Europe
Data mining and
sale of databases to
governments
Full product
launch across
Europe
Product
launch in
Australasia
Beta-testing
Year 1
Year 2
Product launch
in Africa
Product Launch
Year 3
Year 4
Year 5
Year 6 onwards
Research
Figure 4: Timeline for key development steps to product launch
The initial phase of the project is to conduct further research. This will be an ongoing
process, during which market research is carried out in countries that have high
proportions of land dedicated to agriculture such as Africa and Australasia,
particularly in China and India. Alongside this research, AstraZeneca will learn best
practices from the newly acquired company (Nufarm) in order to produce its own
agrochemicals in the future. The acquisition process should take no more than 3
months (AstraZeneca, 2013).
In the second phase, drones customized for AstraZeneca will be developed by 3D
Robotics. This should be completed within 18 months. It includes testing the drones
in different environments with respect to how they withstand various weather
conditions and their flight-length consistency. Special attention will be paid to the
drone’s accuracy in plant disease detection and dipping down to affected plants to
administer agrochemicals. Beta-testing must also be carried out and a selection of
farmers from various countries across Europe will be offered discounted trials for a
period of 6 months to try out the full service. This approach increases market
awareness of D-cubed, and allows farmers using the service in the early stage of
development to provide feedback prior to launch across Europe.
Lastly, the product launch phase, as the name suggests, involves the full launch of Dcubed. As the number of drone-users rises, the amount of data will increase, feeding
into the research phase and improved product development. Launch to international
markets will follow. As of year 4, market presence will be established in Australasia.
In the long term AstraZeneca will target the agriculture markets in Africa.
The rationale behind the choice of regions is based on the ease of market
penetration as well as the location of key agricultural economies. At first glance, Asia
and the Pacific region is an attractive region for investment, as they account for
almost 90% of the world’s small farms (Thapa and Gaiha, 2011). In particular, China’s
agriculture output of US$599billion is the highest globally (The Economist, 2012).
However, upon conducting a PESTEL review (Appendix A), some potential problems
of starting a business in China is highlighted. Turkey is the highest contributor of
agricultural output in Europe, where AstraZeneca already operates, and has an
agricultural industry worth US$62billion (The Economist, 2012), therefore the
decision to enter the European markets first.
4.2 Broad financial targets
It is forecasted that the profits from D-cubed at the end of the five year period will
be approximately €3.2 billion (appendix). This includes revenues from providing the
drone services to farmers and government bodies, selling drugs for diseased-plants
as well as selling databases to the governments. Initial capital requirement is
€4.1billion in the first two years. The project will breakeven in the first quarter of
Year 3 and at the end of five years, our investors will receive 25% of the annual
profits (See Appendix A for breakdown of financial forecasts). Additionally, the
return on investment after five years is low (1.3%) but this is attributed to the high
start-up costs. In the long run (8-10 years), investors can expect higher returns.
5. Sustainability and CSR
In terms of sustainability, the gathering of big data will ensure D-cubed is sustainable
as it will feed information regarding changes in farming practice, the geographic
spread of disease, plant population density, growth rates, etc., back into
AstraZeneca’s R&D department. Ultimately, this will lead to predictions of which
areas to focus drug development on and the production of drugs that will be
addressing changes in demand as they happen. Competitors producing
agrochemicals will lack these predictions and thus have a larger time-lag getting new
drugs to market, granting AstraZeneca first-mover advantage with every new
product.
Another key element that makes the business model sustainable is that imitation by
competitors will be difficult. Developing a strategy that mirrors D-cubed will take
several years by which time AstraZeneca will a stronghold in the market. This is due
to the exclusive nature of the deal struck with 3D Robotics which means other
pharmaceutical companies will be unable to develop high-quality drones in the same
way, for the same purposes.
The business model presented has corporate social responsibility (CSR) built into its
foundation in so far that identifying and treating plants, crops and farms which have
diseases benefits the environment and the wider societies that depend on them. The
surveying capabilities could also serve government bodies to monitor lands such as
rainforests and national parks and charities focusing on various environmental
challenges.
Current overuse of fertilizers by small and large farms regularly damages local water
tables and ecosystems around farmland. The targeted nature of the drone delivery
system counteracts this overuse and protects the planet these ecosystems from
unnecessary harm.
Finally, current CSR operations include inviting high school students access to
laboratories across the world and this can be integrated seamlessly with the new
agrochemical R&D sub-departments. The first-hand experience of work being carried
out to improve the environment, aims to promote further education as well as
inspire an environmentally-conscious generation.
6. Conclusion and Evaluation
To break away from the ferocious competitive environment that AstraZeneca
currently experiences in the pharmaceutical industry, and in order to build
significant profit growth, a new, blue ocean strategy is needed. The proposal of
development of drones which can survey agricultural farms to gather big data and
precisely deploy agrochemicals is built on a strong analysis of the four key industries
involved: pharmaceuticals, agriculture, drone technology and big data technology.
The requirements of the project are that AstraZeneca purchase Nufarm, a leading
agrochemical company, build a relationship with 3D Robotics, a drone developing
company and commit to a joint venture with a big data company.
There are limitations to this proposal, however, and these must be considered.
Firstly, the inclusion of three external entities in the project means that there is a
high risk for factors from the external environment to affect it success. Secondly,
further study is required to assess the viability of each of these partnerships, and a
great deal of this will need to occur via direct communication with the firms
themselves. Finally, as is the case with most innovations, there is the risk that the
market does not take up the new product. In this case, it may be possible that
farmers do not feel they want to stop spraying all their crops with all agrochemicals,
despite the large potential savings, or that they do not trust the drones to reliably
inform them of what is happening on their large area of land. Despite these
limitations, the D-cubed strategy will allow AstraZeneca to pursue a business model
in a blue ocean, free of aggressive competitors, allowing for the capture of value and
development of innovation.
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Appendix
Appendix A
Turkey
China
Political
Stable but aggressive
government
Opposition forces causing civil
confrontation
Communist single-party state, with
changes gradually taking place
Economic
GDP sustainably growing but
at a decreasing rate since
2012
Rapid GDP growth
Socio-cultural
Balance between traditional
European and Muslim cultural
matrix
Balance between traditional
Chinese values and Chinese
Cultural Revolution values
Technological
Advanced but follower (fully
dependent on others)
Widely varies within the country
Environmental Has plans to increase
environmental-friendliness
Has plans to increase
environmental-friendliness
Legal
Stable situation, but performed in
a single-party state
Stable situation
Table 2: PESTEL review comparison in the Turkey and China
Appendix B
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Total
1,000,000
2,500,000,000
2,501,000,000
1,000,000
1,500,000,000
1,501,000,000
800,000
1,500,000,000
1,500,800,000
800,000
1,500,000,000
1,500,800,000
800,000
800,000
800,000
800,000
5,200,000
7,000,000,000
7,005,200,000
-
850
150
127,500
780
15,000
11,700,000
720
600,000
432,000,000
650
820,000
533,000,000
550
850,000
467,500,000
2,285,000
1,444,327,500
-
1,520,000
32,000,000
33,520,000
1,950,000
34,000,000
35,950,000
2,560,000
36,000,000
38,560,000
3,280,000
38,000,000
41,280,000
3,610,000
40,000,000
43,610,000
12,920,000
180,000,000
192,920,000
1,000,000
1,000,000
2,050,000
2,100,000
69,670,000
2,300,000
6,500,000
78,750,000
2,800,000
9,500,000
86,860,000
3,100,000
8,700,000
91,080,000
3,500,000
10,600,000
97,710,000
14,750,000
35,300,000
425,070,000
2,502,000,000
1,604,317,500
1,627,200,000
2,058,220,000
666,160,000
609,620,000
9,067,517,500
Target sales revenue
Price per service package
Target number of packages
Total sales from service package
Sale of data to govt+ organisations
Sale of surveying services to govt
-
-
800
20,000
16,000,000
-
1,900
850,000
1,615,000,000
-
2,400
1,600,000
3,840,000,000
16,000,000
800,000
2,800
2,400,000
6,720,000,000
18,000,000
1,500,000
7,900
4,870,000
4,870,000
12,191,000,000
34,000,000
Total revenue
-
-
16,000,000
1,615,000,000
3,856,800,000
6,739,500,000
12,227,300,000
-2,502,000,000
-1,604,317,500
-1,611,200,000
-443,220,000
3,190,640,000
6,129,880,000
3,159,782,500
Partnerships / Acquisitions
3D Robotics
Big Data company
Plant company
Total cost of partnerships
Drones
Cost of drone+ remote / unit
Number of drones
Total cost of drones
Drugs
Total cost of production
R&D
Total cost of drugs
Other Operating Expenses
Market research
Advertisement
Total operating expenses
Total costs
Net Profit