Case a) Beta Group Why does Beta Group exist? What is the business model for Beta? Beta group is one company that has been able to experience great success in various markets as a result of using the most appropriate business model. By acquiring enough information on market opportunities, competition and finances, beta golf has bee very successful in consumer products, industrial technology and medical fields. Beta Group was founded in order to provide a new systematic approach to innovation so as to bridge the ‘innovation gap’ that existed. This approach was multidisciplinary. It is also called Business Engineering.
It is the business model for beta group. Its founder Zider, felt there was an innovation gap because large corporations did not fully exploit innovations. This was a result of lack of appropriate internal systems. In business engineering, a multidisciplinary team is used to carry out an intensive analysis of markets and technologies. The results were then used to come up with a concept and business strategy. Through this model, a market opportunity is matched with a proprietary technology or innovative process. This strategy was therefore based on meeting the market needs.
This has led to great success for beta in consumer products, medical and industrial technology. What does this tell us about translating innovation into value? It is clear that it every innovation needs to be matched up with the appropriate market opportunity for it to be translated to the desired economic value. This will ensure that it meets the unmet market needs hence a higher success rates and lower chances of failure. b) Development plan for the HXL technology The most sensible development plan for the HXL technology is the alteration of the vibration response pattern.
The sweet spot has been enlarged because it is the best impact position. The motion in one part of the club face is isolated from the others using a decoupled system. To produce this effect, the club face is made to look like a mattress. This has resulted to an improved ball speed for off-center hits because of reduced imperfection in energy transfer. This deals with the problem of distance traveled by the ball when it hits an off-center mark on the club face.
It has reduced asymmetrical responses by reducing ball dispersion. HXL has a unique look Due to the improved grooved, sanded and balanced clubs, the HXL flight distance had been reduced. The club face is like a honey comb. It offers a unique design that is not available with the other mono-faced clubs. Of the various choices for exploiting the technology, which would you choose? A better way of exploiting the XHL is through golf. This is because the most improved version of the HXL clubs is very usable in the existing golf club designs.
The club is mid-sized but has a larger sweet spot. This reduces the chances of encounter with grass and resistance from dirt. Therefore its performance has been greatly improved. What would happen to this project if it were developed inside an existing industry competitor? If this project was developed inside an existing industry, it would not have faced competition and a risk of low market. It would also be forced to lower its prices and this would be so disadvantageous considering its high cost of production.
HXL uses the pixel technology. The cost of this technology is higher as compared with other brands. However, its great performance will help to maintain the market. This will allow XHL to enjoy a big market despite the high consumer price. These consumers considered the pixel technology worthwhile. What would a venture capitalist do with Beta Golf? A venture capitalist would best utilize beta golf by joining beta group as financial partner in order to start up a club company. A venture capitalist will need to fund the appropriate research and development projects needed to develop the beta golf.
This will result to better innovations hence the production of quality products that meets the market needs. This is because a lot of money will be needed to conduct research and come up with the desired product. More money is also needed to start up and run the club company. Beta golf has a high market potential due to its great performance. This means the chances of the venture capitalist running at a loss are minimal.
The technology used in beta golf has low risks. This will help maintain its market. The venture capitalist will need to liaise with beta group so as to identify a place with no or few golf clubs then start one. This will provide another opportunity for selling the HXL clubs. This is because the new technology has been well received despite the high price. Successful business depends on identifying the best market opportunity and finding ways of dealing with the existing market competition. Just like beta group, a patent technology is the best way to insulate one’s business from competition.
Combined with a good management team, every unique innovation is sure to translate to the desired economic value. xxxxx a. Why does Beta Group exist? What is the business model for Beta? What does this tell us about translating innovation into value? b. What is a sensible development plan for the HXL technology? Of the various choices for exploiting the technology, which would you choose? Why? In what order? c. What would happen to this project if it were developed inside an existing industry competitor?
What would a venture capitalist do with Beta Golf