‘Optical Distortion, Inc.’ Case Study
December 02, 2013
Situation Executive Summary:
Optical Distortion Inc. is a single product company that produces contact lenses for chickens. ODI believes that the use of contact lenses for chickens is a superior solution for poultry farms relative to the current alternative manners that farmers use to prevent cannibalism among their chickens – something that is the cause of mortality rates of up to 25% on some farms.
Given the fact that these lenses can cut mortality rates down to as low as 4.5% (compared to the current common alternative of debeaking chickens, which brings mortality rates down to 9%), there is the belief that these contact lenses can have a drastic impact on the market and prove to be very successful for ODI. Also, with over $363 million chickens in the US, the market size to promote this product to is rather substantial.
Considering the limited resources available to ODI and the desire to make an impact in the market prior to other firms joining them in 2-3 years’ time when they would be in a position to market a comparable product, aiming for the right market segments and entering with the right price are paramount to success. By focusing the marketing attempts on large farms (of 100,000 chickens or more) in California, and selling a box of lenses for $37.50 each, then the company would be in a prime position for success.
Issues that farmers are currently facing include life expectancy of chickens, their average egg yield, and their food consumption. All these factors are marred by a chicken’s naturally aggressive nature in their familial hierarchies. Of greatest concern however, is that fact that chickens have cannibalistic tendencies, resulting in up to 25% mortality rates.
In order to avoid literal ‘henpecking’, farmers are having the chickens’ beaks cut off. For many weeks, these chickens deliver a sparse yield of eggs, gradually coming back up to what would almost...