Bioxyne products which depends upon the proprietary probiotic strain

 

 

 

 

 

 

Bioxyne Limited

 

Introduction 

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            Bioxyne
Limited, headquartered in Sydney, Australia is a company which specialises in bio-technology,
life science and healthcare products. It is a company which develops, manufactures,
markets and distributes consumer dietary products which depends upon the proprietary probiotic strain of Lactobacillus Fermentum PCC to
the immune health and immunotherapeutic sector. Also known by the name
of VRI Biomedical Ltd. (until 2005) and Probiomics Ltd (2005-2012), Bioxyne it also
works in development of major functional health foods and beauty products. It’s
products are available under the name of Progastrim and protract. It is a
company which distributes it’s products via both online and offline channels in
major continents and countries like Australia, The US, Europe and Malaysia.

            With
a mission to bring Science into Wellbeing, Bioxyne’s consumer
health products have been developed and sold globally for more than 15 years.
Bioxyne’s targets it’s products towards infants and fitness conscious young
adults. It also offers free shipping delivery across Australia and New Zealand.
The company has manufacturing and distribution agreements with Chr. Hansen and
Nu-Skin Enterprises. Bioxyne faces competition from manufacturers such as Benitec
Biopharma Ltd, Immutep Ltd, Dorsavi Ltd, Medibo Ltd, Botanix Pharmaceuticals Ltd,
Noxopharm Ltd etc. with Net Revenue, Net Income, Market Cap and Number of
Employees as given below.as of Jan 30 2018. Currency figures
are in Australian Dollars.

            Given the following
market scenario, Bioxyne is competing in a close and strong competitive
environment in which Bioxyne has to maintain it’s competing advantage by
innovating new products from time to time and maintain it’s POD.

            In order to get a deeper
look into the competitive environment of Pharmaceuticals and Biotechnology
industry of Australia and to compare Bioxyne’s competing advantage, a PESTLE
analysis has been done. These Political, Economic, Social, Technological, Legal
and Environmental factors influence the business of Bioxyne.
Political:   
 -positive tax policy structure
-governmental support to organisations
-experienced political environment
-international trade agreements
-political stability in the country
-low trade restrictions

Economic:
-competitive market
environment
-public investments in research and development
-economic structure
-increasing market size
-high productivity due to betterment of technology
Social:
-stable social structures
-growing demand across products
-young population comprising of 13% (15-24 years) and 41.45%
(25-54 years)
-cultural diversity comprising of English (26%), Irish(7.5%), Scottish 6.4%, Italian 3.3%, German 3.2%, Chinese 3.1%, Indian 1.4%,
Greek 1.4%, Dutch 1.2%, other 15.8%
-education expenditures of 5.3% of GDP
-workforce of 73% population approx.(15-64 years) of
age
Technological:
-mobile technology
-technological and industry concentration

Legal:
-Government laws and regulations
-Human Resource policies

Compensation law structure
Environmental:
-telecommunication services
-business sustainability
-weather conditions across the country
-green products and services
-recycling of the used and defective products and
spares
-infrastructure issues

            Average per capita earing for
an average Australian household accounted for $78,832 while the cost of
Bioxyne’s products ranges between $88-$90. One of the excellent use of online
space is shown by bioxyne which demonstrates how to take the probiotics in an
easy way and guide the users about why probiotics is important and its health
benefits. 

 

Production Costs and
Scale

Manufacturing of any product is affected by the factors of
production, the product lifecycle of the product, the raw materials procurement,
the demand of the product, the availability of the distribution network and the
infrastructure and utilities. The PESTLE analysis for the clear understanding
of the business environment has been performed. The PESTLE analysis gives the
overall environment analysis along with the insights of development. In
order to produce goods and services which can be sold, and generate revenue and profits,
a firm must purchase or hire scarce inputs, which are its factors
of production. These factors can be fixed or variable.
The factors of production can be widely divided into two sections: A Fixed and hence unlikely to vary much according
to the quantity of goods produced or sold and B Variable and hence
likely to increase with increased production or sales.

Distinction
Between Fixed and Variable Factors

FIXED FACTORS

VARIABLE FACTORS

1. Fixed factors
exist only in the short-run.

1. Variable
factors exist both in the short-run and long-run.

2. It is independent of output in the short-run.

2. It changes
with the change of output in the short-run

3. Plant,
machines etc. are the examples of fixed

3. Labour, raw
materials etc. are the examples of variable factors.

4. It exists
even in the zero level of output.

4. When output
is zero, quantities of variable factors are reduced    to zero.

 

The Fixed Factors of production
include: Offices, Factories, Machinery, Equipment etc. These are the factors of
production which remain constant even if the production of product/service is
zero. These factors of production also incur maintenance cost inspite of no
output. Average fixed cost (AFC) = total fixed costs (TFC) / output
(Q)

            The
Variable factors of production are those factors which vary as per output
production of the organisation. These factors incur zero cost when the output
is zero. The variable factors of production include: Labour, Energy, Raw
materials etc. Average variable cost (AVC) = total variable costs (TVC)
/output (Q).
            Marginal cost is the change in
total cost which increases per increase in output production. These factors of
production play an important role in accordance to the time periods, these
include: The very short run, the short run, the long run, the very long run.
The very short run is the time period in which the output is increased by using
up existing raw material input stocks. The short run time period is the period
in which the output increase can be influenced by other factors such as hiring
more workers, increasing part time labourers, but the fixed factors of
production do not change. The long run period is the time period in which the
company changes it’s production capacity and increases it’s production scale to
a new upper level. In this run, no factors of production are fixed and all are
variable. Typically it means that new workers are employed, new machinery is
bought and increasing the pay of workers. The very long run period is the
period in which a change in technology has been brought. Disruptive innovations
which changes the face of the industry are for a very long run period. Economists
mainly consider the short run and long run and mainly ignore the very short and
very long run’s since these are very rare.