BioCo is a Fortune 500 company that is a powerhouse in developing and commercializing biotechnology in the agricultural and pharmaceuticals markets. It has recently formulated a long-term vision to become a broader “life sciences” company addressing a range of human health and nutrition needs, and is exploring different directions for growth consistent with this vision.

Nutraceuticals opportunity

One high-potential growth opportunity that has been identified through recent work with Consultant is the emerging nutraceuticals market. Nutraceuticals are foods that have been enhanced with nutrients that have specific health benefits – for instance, to reduce the risk of osteoporosis.

Nutraceuticals are viewed as a high potential growth opportunity for BioCo for several reasons:

• Market potential: consumers are increasingly showing interest in nutritional approaches to health, from both a curative and preventative standpoint.

• Fit with BioCo: BioCo’s management expects the company to be well-positioned to bring innovative nutraceuticals to the market.

  With a view to developing and executing a nutraceuticals growth strategy, BioCo has recently set up a separate Nutraceuticals Division within its organization.

  Cardiovascular (CV) nutraceuticals focus

  Earlier this year, a study with Consultant to identify a suitable portfolio of nutraceutical areas for BioCo to invest in identified cardiovascular health (CV) because of:

  • Market potential: CV disease is a major cause of death in the US, and consumers have become increasingly sensitized to the need for managing their “bad” cholesterol level.

  • Advanced state of R&D: BioCo’s research team have identified nutritional compounds that they feel can give them an edge in the marketplace with their unique know-how.

    BioCo is not the only company who is seeing an opportunity in nutraceuticals, and in CV health in particular. For eg.Kellogg has recently announced a $50 million investment in a new “Functional Foods” unit.

    Nutraceuticals Division executives want to more rigorously assess whether Bioco should invest in developing a CV nutraceuticals product? If so, how would these products be marketed?

    BioCo has retained you as a Consultant to evaluate this proposition. You have been asked to deploy a team for 4 weeks to focus on these questions. Draw an Issue Tree.

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Bioco should invest in developing a CV nutraceuticals product because Cardiovascular diseasesCVD are the no 1 cause for the deaths around the globe than the other diseases It mainly takes place in low ... View the full answer