Overview

In the GenapSys case, the company is faced with a set of three distinct strategies to consider:

$1.$ Use its significant technology advantage to establish a traditional business selling machines and test cartridges $($tests$).$ These would be sold to the existing market of customers and differentiate on faster sequencing time and flexibility.

$2.$ Exploit its cost advantage to expand the market, selling machines and tests at a low price.

$3.$ Sell machines and tests at cost but collect the data to create a database of genomic data to which GenapSys could charge access fees, and host an on$-$line store.

"This exercise will help you to examine the cash flow implications of each of these choices. Differences in the cash flow profiles of each strategy will determine how much money GenapSys needs to raise, when they need to raise the capital, and the sources of capital most likely to provide it$.$

We will begin by reviewing a general example on the next tab before examining a sample model of the proposed GenapSys strategies. On each tab there are questions highlighted in green which you must complete.

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