The beta group

Answer The Beta Group was formed in 1983 by Zider who was a man with an open mind and vision. Indeed, the group was formed after analyzing the fact that a certain technology and innovation gap exists in the larger corporations, which could be met if a firm offers technology – based process as well as business opportunities to interested personnel. Beta became a successful group in corporate world because it created and offered new technological solutions in certain business sectors such as medical, consumer products, and industrial technology. The group actually identified where the gaps exist in the market and how they could be matched through use of technology and research & development. The actual business model of The Beta Group is known as Business Engineering that refers to development of a concept and business strategy through comprehensive marker research followed by analysis of potential and scope of certain products and technologies. Indeed, the group first identifies an opportunity in the marketplace after which it initiates research and evaluates the competition, underlying issues and how the needs could be met. If research proves successful then the needs are matched through hunting and development of a proprietary technology or an innovative process. Nevertheless, it is justified to argue that Beta Group has translated innovation into value through creation of new technologies by using innovative ideas. As a result, the proprietary technologies have benefited in meeting consumer meets for which no solutions were previously available in market. In short, the aforementioned created value for patients and customers from every walk of life. Answer 2 There were various options for developing and commercializing HXL technology such as licensing its technology to an existing company, supplying a component insert, acquiring an existing company, starting a new equipment company. Nonetheless, the most sensible development plan for HXL technology would be licensing the new technology because the Zider himself revealed that Golf is a trendy business and many smart people have lost money in this sporting industry. Licensing is the safest option because an exclusive license might result an 8% to 10% royalty on wholesale sales and a $10 million marketing commitment, while a non-exclusive license might generate a 6% to 8% royalty. For instance, Beta would be responsible for research and development and patent defense, whereas licensees would be responsible for production and marketing, pricing and quality standards. A major advantage is that a licensee would grasp a 20% to 50% price premium for the technology. As far as my choice is concerned, I would like point out that Starting Up my own new golf equipment company from a capital of $10 million would be the most profitable option, though risky, in the long run provided high product quality and fulfillment of all requirements and specifications. A company that launched a premium quality and technologically distinctive golf equipment has already proven to be extremely successful venture because it easily established a strong customer base and recorded phenomenal growth. For instance, owning a company would also enable to market new technologies and products to existing customers in near future; hence, the costs on marketing and advertising would be reduced. Answer 3 In case this project had developed inside an existing industry competitor, Beta Golf would have to face stiff competition from the rival creator of modern technology. In addition, the group would have to make changes / modifications / amendments into existing HXL technology so that it could differentiate and enhance quality by meeting or exceeding specifications of potential buyers / users of HXL. For instance, the pricing, royalties and premiums would have also been affected in presence of a new competitor as both rivals would opt to beat each other’s technology to enhance one’s market share and sales volume. A venture capitalist could personally analyze the scope and potential of Beta Group’s projects, different technologies and businesses by reviewing the costs and profitability figures, valuations and forecasts. For instance, the venture capitalist could then decide to invest in Beta’s new projects that have immense potential to match identified market needs and gaps through sales of proprietary technologies and solutions. Nevertheless, the capitalist could also form long-term business relationships with Beta Group by endorsing the fact that the firm has greater focus on research & development that enable to transform innovative ideas into novel technologies.