Changing the Business Model of an SME in the Biotechnology Sector

Abstract

How a firm can change their business model was investigated using a business model perspective, which gives a holistic view of the firm. The challenges and opportunities of this process was investigated using two case studies, employing primary and secondary data. The results of these case studies was then compared to findings from the literature to show what opportunities and challenges are common to firms in this industry and which were specific to that firm alone. Identifying these challenges and opportunities before the process begins allows a company to prepare for the challenges and to fully exploit the opportunities. In order to answer the research question primary data was collected in the form of semi structured interviews from employees of Company X, a New Zealand SME specialising in cell therapies. The data was analysed qualitatively and compared to the secondary data case based on the Grand Rapids Centre for Molecular Medicine, an SME which has undergone two major business model changes. The findings identified common challenges and opportunities that other bioscience SMEs are likely to encounter while changing the business model of the firm as well as challenges and opportunities which are specific to that firm and should be identified by each firm based on their own way of doing business, their competencies and situation.