New Product Commercialization
Designing Profitable Market Strategies
Cascade worked with Targeted Growth, Inc - a leading agricultural biotechnology company - to develop an analytical framework to evaluate the commercial potential of its products, under various assumptions about product design, production costs, and market prices. The core of the framework was an integrated model of production costs, which simulated product yield under different growth parameters and production process specifications. The model estimated the profitability of product sales to selected product markets, as well as the required capital investments needed for volume production. The model used a multi-party perspective to assess the financial impact on 3rd-party producers, customers, suppliers, and government taxpayers, under alternative market and regulatory scenarios.
Cascade successfully transferred the framework to the client organization, which has extensively used it to:
- Identify critical product investments needed for commercial viability, given key uncertainties in both technical performance and future market prices.
- Evaluate alternative joint-venture agreements, estimating the financial impacts of the venture to each party.
- Evaluate the potential impact of climate policy and RPS legislation on commercial potential, by estimating the impact of these regulations on both production costs and market prices.