A reseach study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2005

Innovation is one of key success factors for entrepreneur to build business landscape in the market. However, having only innovative product, the entrepreneurial venture cannot compete effectively in the market. Strategies and tactics during each stage are the important concerns for entrepreneur to set up, grow, and expand business. Lacking of one of these components, company will has a hard time to survive in the radical market competition. Nowadays, there are many research institutions conducting researches and developments in Thailand. Year after year, many research outputs are produced without generating greater economic value because there is a big gap between technological side and commercial side. Therefore, Thailand still imports technology or high-end products from overseas. This research tries to bridge this gap. It is an attempt to develop strategies to bring the innovative products or services to commercialize in the market. The strategies are developed on an assumption of young entrepreneur who has few resources. Among more than 100 advanced technological project, the product and service are selected from leading research institution in Thailand. They relate to fabricate customized biomaterial for implantation in orthopedic and craniofacial surgery. They also relate to fabricate three-dimensional model for surgical planning and rehearsing by using rapid prototyping technology. The marketing strategy will begin with craniofacial application to gain first customers and strong references from leading public hospitals by utilising researcher's connection. Subsequently, orthopedic application will be aggressively introduced to the market. Because of high surgical risk, pain in additional surgery to harvest bone at pelvis, insufficient harvested bone from pelvis in autograft and of the high chance of shattered bone, infection and low biocompatability in metal implants, these problems can be solved by customised hydroxyapatite. Consequently, the major objective of the strategies is to replace all autografts and some applications of metal implantation in orthopedic surgery. Licensing technology from resech institution is required to obtain technological know-how. In addition to technological advantage, this plan also attempt to penetrate the market by both push and pull marketing strategy. For push strategy, building relationship with leading private and public hospital is mandatory. For pull strategy, strong brand building and trust building will be emphasized to strengthen competitive position. This plan requires 8 million baht for investment. Equity financing for 5 million baht from investors to set up plant&equipment, operate business ,conduct marketing activities, and hire employee in January 2006 is required. In returns, the investor will recieve 50 percent of the company's ownership. According to the plan, this business will generate 59 percent IRR. With 50 percent discount rate, NPV value of this business is 1.4 Million Baht. In the end of year 5, IPO is the most favorable exit strategy. With 12 price to earning ratio, The company value at IPO by the end of 2010 is 414 Million Baht.