CASE STUDY 5
B2P: Micro-Bioinformatics Technology and
Global Expansion
SUMMARY AND AUTHOR’S NOTE
In 1983, Dr. Rosemary Sharpin formed New Zealand’s first biotech company. It was at ICP that
Dr. Sharpin learned of the need for better E. coli and coliform testing. As a result, in conjunction
with the New Zealand Dairy Research Institute, ICP began to research and develop the
innovative biotechnology that would become the foundation for B2P’s testing products. In 2002,
Dr. Sharpin bought the intellectual property that was the basis of the B2P product suite from ICP,
and she and business partner Maxine Simmonds “spun off” B2P Ltd.
Any area that could be affected by E. coli could be considered a potential market. Based on
consumer demand and government intervention, the two markets with significant opportunities
were within the water and food industries’ supply chains. Within the E. coli and colioform
testing industry there are several “areas of pain.” Overcoming them can place an organization
ahead of the other testing outlets. They include breadth of services, reliability, technology, time,
and price.
WHERE TO USE THIS CASE
• Chapter 3: Use to discuss the process of innovation and creative problem solving in new
product development.
101 Case 5: B2P
CASE ANALYSIS
This case offers the opportunity to examine the process of industry and market analysis. A global
health crisis has created a global opportunity for B2P. Begin with a discussion of Dr. Sharpin set
up her startup. One of her goals in organizing was to not over extend the company too much in
the initial stages. As a result, B2P’s structure was straightforward and leveraged outsourced
resources including contract manufacturing, marketing, and non-essential design and
development. Consider with students how this set up may help B2P go global.
Analyzing Industries and Markets
Consumer concern and government involvement has caused an increased opportunity within the
testing industry as demand for safer products grows. Two ongoing developments that affect E.
coli and coliform testing are the growth in the environmental testing activities industry and an
increase in agricultural testing, with both areas benefiting from additional government funding
and increased competition.
Recognizing Opportunities
The frightening threat of E. coli contamination in food and water will always be a problem.
Fortunately, serious outbreaks can easily be prevented if the contamination is caught quickly and
dealt with immediately. Thus, the need for a reliable, convenient, quick method of testing food
and water provides an ample opportunity for B2P to expand its business.
Barriers to Market Entry
Breaking into the lucrative American and European markets will take a serious commitment of
both time and resources. Discuss with students the barriers to global expansion for B2P. When
Case 5: B2P 102
considering the testing market, and specifically the U.S. testing market, there are several key
challenges that should be considered. They include:
• Breadth of Services. Many labs offered multiple types of testing. By sending samples to a
lab of this kind, a company could obtain lab results for more than one contaminant.
DISCUSSION QUESTIONS
1. What are some of the challenges the company faces when entering the U.S. testing market
and how can B2P overcome them?
Breadth of Services
• Challenges: B2P offers a niche product which may make it difficult to compete
against labs that conduct multiple tests.
Reputation
• Challenges: Without a proven U.S. track record, entering the testing market may be a
challenge.
• Solutions: Build off current reputation to generate partnerships with established U.S.
Regulation
• Challenges: U.S. is a highly regulated market and obtaining government approvals is
expensive.
• Solutions: Begin process for government approval (EPA, FDA, etc.) as soon as
possible.
Deniability
• Challenges: When possible, companies sometimes choose not to test their products at
all. If testing is not required and its cost exceeds the cost of a product recall, many—
especially in the meat industry—choose not to test their products.
103 Case 5: B2P
2. Is the B2P product an industry game changer? Is the product better than the other testing
devices on the market? Why? Why not?
The company’s product is more reliable, more efficient, and more convenient than any
3. What are some of the opportunities for B2P?
• Water testing for:
• Food testing: