Isolde, head of Siiquent, targets the market of consumable goods (biological and chemical compounds, test kits, etc.) associated with gene-based diagnosis machines. As a result, Siiquent’s business model is about providing these consumables at a lesser price than the reimbursements their customers (hospitals and labs) receive from insurance companies, thereby generating profits for these hospitals and labs. Emanuel, head of Teomik, targets the market of biological research equipment. Therefore, Teomik’s business model is about the patent-protected technology behind each of the machines they sell.
The largest pro of consolidating into a single revenue model is that it would help the overall company cut costs surrounding sales and operations allowing the company to focus on the increasing number of competitors in this larger market. Furthermore, it would create a clearer understanding of the company’s brand among the sales teams and the companies customers. Cons include losing a degree of flexibility in terms of addressing customer (research vs. hospitals and labs) needs which seems to be a big differentiator for this company.
I would scaffold the discussion as such:
- Quantify estimated sales and ops savings associated with having a single revenue stream
- Market dynamics research (is this trend of research merging with industry here for good? how prevalent is it in the market?)
- Consider the merging of both revenue models (where is there overlap and where is there specialization)
