Project 3

MediCorp Client Brief

Course Resource

Client Name: MediCorp, Inc.

Industry: Genetic Testing

Company Background

MediCorp designs, develops, and

sells genetic testing devices to the

medical industry. The company was

originally part of a much larger

organization (MediCorp, Inc.) with a

virtual monopoly in the market.

However, the 97 percent market

share MediCorp enjoyed eventually

drew the attention of the Monopolies

Commission. The American Times

summed up the commission’s

findings and actions:

Increasing pressure from

hospitals, clinics, and nonprofit

organizations slowly began to

turn the focus of the Monopolies

Commission toward MediCorp,

Inc. Although there was no

suggestion of foul play, the

American Medical Board was

concerned that genetic research

was being inadvertently stifled.

The commission moved quickly

to split the conglomerate into six

equal entities, who have gone on

to hire from a pool of talented

young executives and form a

new board of directors for each

company.

New Markets

MediCorp had adhered to a strict “no

export” strategy based on the fragility

of genetic testing devices and the

cost of replacing inaccurate or broken

units. However, today’s more robust

technology means this is no longer

the case, and industry reports

suggest that demand is growing

overseas. These markets have been

touted, by some commentators, as

the future of the genetic testing

market.

What Is a Genetic Diagnostic Test?

Portable genetic diagnostic tests

(genetic tests) are used to quickly test

for a range of medical conditions.

Diagnostic testing devices have a

long history, going back to the first

medical thermometers. They evolved

to include devices that mechanically

checked for vital statistics, like blood

pressure, or biochemical tests of

blood type or sugars. As time passed,

the “lab on a chip” concept combined

several diagnostic devices into one.

Your industry is on the cutting edge.

You specialize in portable genetic

diagnostic tests. Your devices can

determine whether a particular gene,

or combination of genes, is present in

the patient, and can even tell a

physician whether the gene is

switched on or off. They are useful in

diagnosing diseases like cystic

fibrosis, Crohn’s disease, and certain

types of cancer, as well as

determining risk profiles that help

people avoid the development of a

disease towards which they might be

predisposed. Your company

manufactures these portable health

test kits. The devices are largely sold

to hospitals, school districts, and

private paramedic service companies.

Your company competes directly with

the other companies in a zero-sum

market, which means every sale you

make is one your competitors lose.

Conversely, every sale your

competitors make means one less

customer for you. Your goal in the

simulation is to outperform the

competition. A successful company

will use the tools available to analyze

the market and implement a

dominant strategy.

You will lead one of the following

companies. You may compete against

up to five other companies led by

your peers, computers, or both.

Capsim Companies

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