Executive Summary
Neuromonics Pty Ltd was established to develop and commercialise treatments for Tinnitus, a common hearing disorder, affecting approximately 15 to 20% of the adult human population. After identifying the significant opportunity to expand the business internationally, the management of Neuromonics is faced with some important decisions regarding the way in which they expand their business.
The following paper analyses the current position of Neuromonics, recommending a strategy to rapidly expand the business, focusing on one primary international market. It is however recognised that the management team should also plan to expand into other international markets shortly after to maximise the growth opportunity for the business while ensuring enough focus is placed on the first phase of the expansion.
Problem Statement
In spite of Neuromonics progress in the areas of clinical trials, regulatory approvals, secured intellectual property and commercial acceptance of the product in the Australian market, the business faces some important questions regarding the strategy and approach to the expansion of their business globally. The board of directors together with the leadership team, have recognized that the company has an opportunity to enter the international market and guide the company to achieve its full global potential. It is common for small and medium enterprise to consider expansion as form of growth, such as franchising, exporting or geographic expansion (Barringer and Greening, 1998), but not many companies going through it smoothly and so does Neuromonics. It faces a number of significant challenges in order to ensure the opportunity is realised in a sustainable fashion. These issues can be summarised as follows:
1. The poten ...