Innovate Business Model

AMEGA Genetics: Innovate Business Model
Business Model Definition:
AMEGA Genetics is a company founded in 2008, which offers products and services to develop the productivity on the beef and dairy industry. We are localized in Ibague (Tolima) where we have a genetic central (where a high value animal remains) and a cryopreservation laboratory.
Our customers search us because we obtain fromtheir best bull and cows, its genetics cells (sperm, embryo and oocyte) cryopreserve it by freezing at very low temperatures and get pregnant cows without commercial value with that genetics cells using artificial insemination (AI) and embryo transfer technology (ET).
On the other hand we offer services on reproductive diagnosis on cows using ultrasound and breeding evaluation on bullsdetermining the reproductive potential
We charge for the products (genetic cells cryopreserved) and for the services, but we don’t guarantee that cows became pregnant (we use a pregnant rate of 60% for Artificial Insemination AI and 40% for Embryo transfer technology ET). That business model makes us to be sure to get profit on the company but our customers will prefer another way for the businessmodel.
Why a new model is needed ??
Genetics industry is growing in a exponential manner for several reasons:
1. First of all, Colombia started a open market strategy that makes that all local industries must transform searching improve their productivity, if they wants to compete against outside companies. On beef and dairy industries, the competition against companies from USA and EuropeanUnion, will be a problem that could affect the surviving on the local market. On the other side local industries have new opportunities to enter in new international markets. On beef and dairy industries would open new markets especially in Asia (Korea, Israel, and Turkey) Africa (Angola, and some sub-Saharan countries) and Europe (Russia).
2. The profit of the beef industry has decreased in thefew years because some substitute products like pork and chicken increase their preferences on the customers. Moreover Poultry and Swine Industries have grown too much the productivity, because they are a so organized trade with a lot of investments. With that, FEDEGAN and ASOCEBU that are the institution that represent all beef farmers have spent so many efforts to improve the productivity on theindustry
3. Dairy industry has some particularities in Colombia, like localized production, feed based on grass and too many small producers. That’s particularities have made that government would invest a lot of money on the industry.
With the necessity of foment the productivity, almost all producer already are investing in their productions, because they know that could not be capable tosurvive. With genetics producers can improve the capacity of their animals to produce more in less time.
There are some technologies that’s permit makes beef and dairy breeding faster like Artificial insemination and Embryo technology. Actually there are several companies and veterinarians that offer the same products and services than our company.
On the other hand there is a new technologyfaster on the animal breeding on the beef and dairy industry than AI and ET. Its name it´s in vitro fertilization IVF and is a improving on the embryo transfer technology, that makes get better results on the best exemplars. The unique problem of the IVF, is lesser pregnant rate.
The IVF will be a technology that AMEGA Genetics will need to implant inside their briefcase of services and products in4 or 5 years, for that is necessary that the company starts to work in improve their pregnant rate with other technologies.
Customer Value Proposition: Important Job Done
Our customers would prefer to work with us using a pregnant animal methodology (Business model) that consists in charge just for pregnant cow and doesn´t for the service. That methodology gives to the customer the security...