The Entrance in Foreign Markets in the Field of Biotechnology and the Consideration of Socio-Cultural Particularities

Using the example of SeaLife Pharma

Seminar Paper, 2010

28 Pages, Grade: 1,0



List of Abbreviations

List of Tables

1. Introduction

2. Biotechnology
2.1 Modern Biotechnology
2.2 Marine Biotechnology
2.3 SeaLife Pharma

3. Austria
3.1 Austria according to Hofstede
3.2 Austria’s attitude in the fields of biotechnology

4. SeaLife Pharma enters into foreign markets
4.1 Licensing
4.2 Strategic Alliance
4.3 Final Recommendation

5. Conclusion

Appendix 1
Appendix 2
Appendix 3
Appendix 4
Appendix 5
Appendix 6
Appendix 7

List of sources

List of literature

List of internet sources

List of Abbreviations

illustration not visible in this excerpt

List of Tables

Table 1: Basic findings of modern biotechnology

Table 2: The biotechnological theory of colours

Table 3: Management of SeaLife Pharma

Table 4: Potential antibiotic producers close by SeaLife’s headquarter

Table 5: Potential antimycotic producers close by SeaLife’s headquarter

Table 6: Facts and figures about biotechnology in Austria

Table 7: Selection of Austrian prohibitions in fields of green biotechnology

1. Introduction

The term biotechnology and its findings are omnipresent and particularly very controversial. This paper will consider one segment of biotechnology. Furthermore the entrance into foreign markets and its consideration of socio-cultural particularities will be described using the example of an Austrian startup enterprise.

Nowadays, there are 3 central societal problems where innovative biotech solutions can help. Currently out of 30.000 already known diseases only one third can be given therapy to.[1] Moreover in 2020, 8 billion people around the world have to be adequately supplied with foods.[2] Our fast growing standard of living already leads to considerable problems, for instance environmental or climate changes.[3] This paper will primarily focus on the first mentioned central problem.

The enormous advance in the late sixties and early seventies in developing antibiotics[4] led to the error that infectious diseases would have been defeated.[5] 40 years later, infectious diseases have become number 2 of the most common causes of death.[6] Recently, pharmaceutical research majorly focussed on existing structures.[7] Hence, only a small number of substances with innovative agents have been approved. Antibiotic resistance was the major consequence of sticking to the same structures for a long time. Antibiotic resistance means that after introducing new antibiotics, resistant pathogens occur in a short time and are resistant to all kinds of medicines.[8] Infecting with such a virus can result in life-threatening diseases where no medium helps. The future solution cannot be modifying antibiotics.[9] Innovative antibiotics with innovative agents have to be developed.[10]

In these days wellness has become a superstore in our minds.[11] Anything regarding health and well-being is foregrounding. Recently, an ageing and more and more body focussed society arose. Biotechnology counts as one of the key technologies in the 21st century. To assure an ageing society, biotech enterprises put their emphasis and major financial power on Research and Development (R&D). The R&D intensity is defined as the share of biotechnology R&D expenditures out of the total value added in that industry sector.[12] The average R&D intensity is 0.12% for the 19 countries of the Organisation for Economic Co-operation and Development (OECD) (see: appendix 1).[13] Seven countries are above average. The United States leads with a biotechnology R&D intensity of 0.31%, followed by Switzerland (0.28%) and Ireland (0.27%). Biotechnology R&D firms in the United States spent over USD 25 billion on biotechnology R&D (see: appendix 2). This accounts for 75% of the total biotechnology R&D expenditures by firms in the 19 OECD countries.

This paper is divided into three major chapters. The second chapter defines biotechnology generally and furthermore gives an insight in marine biotechnology using the example of a concrete enterprise. Afterwards cultural and socio-political particularities in the fields of biotechnology will be explained based on Austria where this startup enterprise is headquartered and currently operating. The fourth chapter concentrates on concrete foreign market entry strategies which could be applied by this startup enterprise. Finally every aspect will be summarized and a final recommendation will be given.

2. Biotechnology

Certainly everybody has become vaccinated against influenza or knows somebody who is affected with diabetes and therefore has to inject him/herself insulin against it.[14] Furthermore everybody already has drunk a glass of wine or has eaten pieces of cheese.[15] This means that everybody already has become affected with several products and blessings of biotechnology. The roots of biotechnology are as old as the human culture. Already in Stone Age, our ancestors learned to cultivate animals and plants by crossbreeding and screening.[16] In a nutshell, biotechnology can be defined as the use of living organisms or their products to the advantage of human beings manufacturing products or solving problems.[17] Biotechnology influences our daily life and will significantly become more and more important. Various experts already call the 21st century as the “Century of Biotechnology”.[18]

2.1 Modern Biotechnology

The current century started with hope and numerous visions. We shall life in intelligent houses, be globally interconnected teleworkers and spend a considerable amount of our spare time in virtual communities.[19] Thanks to the advances in medicines we are getting older and older.[20] The roots of modern biotechnology are based in the late 19th and early 20th century (see: table 1).

illustration not visible in this excerpt

Table 1: Basic findings of modern biotechnology[21]

In the meanwhile, biotechnology is a frequently used cross-sectional technology. By using the techniques of modern biotechnology we are actually able to develop drugs[22], to cultivate new kinds of plants as well as produce everyday products such as detergents or cosmetics more efficiently.[23] The extent of biotechnology is very complex, thus a vast number of market segments are already identified, belonging drugs, vaccines, medical devices, diagnostics, plant breeding, genetic engineering, food production, enzymes, fine chemicals, environmental biotechnology and analytic services.[24] To differentiate these multiple mentioned fields of application, a theory of colours crystallized out. Generally biotechnology is divided into 3 main segments - red, green and white.[25] Currently red biotechnology makes up the majority of market share. Shortly ago, further 2 segments of biotechnology have been emerged - blue and grey. These additional segments are characterized as cross-sectional technologies towards the 3 main segments of biotechnology (see all segments: table 2).[26]

illustration not visible in this excerpt

Table 2: The biotechnological theory of colours[27]

In its entirely all segments of biotechnology are associated with enormous innovation potential. The United States are the major location of biotechnological research (see: appendix 3). The biggest market potential is actually promised to blue biotechnology.[28] Below, blue biotechnology will be explained generally following by the use of a concrete enterprise operating in this segment.


[1] cf. Bengs, H.; Bayer, M. (2008), pp. 99

[2] cf. Bengs, H.; Bayer, M. (2008), pp. 99

[3] cf. Bengs, H.; Bayer, M. (2008), pp. 99

[4] Antibiotics are drugs of natural or synthetic origin that have the efficiency to kill or to eliminate the growth of micro-organisms; cf. Hernández Serrano, P. (2005), pp. 3

[5] cf. Anon (2008a), pp. 41

[6] cf. Anon (2008a), pp. 41

[7] cf. Brodacz, J. (2008), pp. 5

[8] cf. Nolte, O. (2009), pp. 18

[9] cf. Kugler, M.; Schmidt, V. (2008), pp. 1

[10] cf. Kugler, M.; Schmidt, V. (2008), pp. 1

[11] cf. Steinmüller, K. (2006), pp. 12

[12] cf. Van Beuzekom, B.; Arundel, A. (2009), pp. 24

[13] cf. Van Beuzekom, B.; Arundel, A. (2009), pp. 24

[14] cf. Thieman, W. J.; Palladino, M. A. (2007), pp. 2

[15] cf. Thieman, W. J.; Palladino, M. A. (2007), pp. 2

[16] cf. Steinmüller, K. (2006), pp. 59

[17] cf. Thieman, W. J.; Palladino, M. A. (2007), pp. 2

[18] cf. Thieman, W. J.; Palladino, M. A. (2007), pp. 2

[19] cf. Steinmüller, K. (2006), pp. 9

[20] cf. Steinmüller, K. (2006), pp. 9

[21] Adapted from: Steinmüller, K. (2006), pp. 59

[22] In this seminar paper, the word drug refers to pharmaceutical drugs where a certain kind of chemical substance is used for curing concrete diseases.

[23] Anon (2008b), (date: 18.01.2010)

[24] cf. Steinmüller, K. (2006), pp. 62

[25] cf. Steinmüller, K. (2006), pp. 62

[26] cf. Steinmüller, K. (2006), pp. 62

[27] Adapted from: Bengs, H.; Bayer, M. (2008), pp. 43 sqq.

[28] cf. Steinmüller, K. (2006), pp. 66

Excerpt out of 28 pages


The Entrance in Foreign Markets in the Field of Biotechnology and the Consideration of Socio-Cultural Particularities
Using the example of SeaLife Pharma
Württembergische Verwaltungs- und Wirtschafts-Akademie e.V.
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ISBN (eBook)
ISBN (Book)
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This paper describes the term biotechnology and how a small Austrian startup enterprise could enter into foreign markets. The paper combines knowledge of Intercultural and International Management constantly referring to biotechnology. Biotechnology is explained largely focusing on marine biotechnology. Biotechnology in Austria is analyzed according to Hofstede. Moreover Austria's general attitude towards biotechnology is described. Finally it is explained what has to be considered while entering into new markets and which market entry strategy could be pursued by this enterprise.
Biotechnologie, Biotechnology, modern biotechnology, rot, grün, blau, weiß, grau, red, green, blue, white, grey, Markteintrittstrategie, Market Entry Strategy, Österreich, Austria, Hofstede, OECD, Ban, Prohibition, Verbot, R&D intensity, sales, SeaLife Pharma, biotech, licensing, foreign sales department
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Sebastian Maiwald (Author), 2010, The Entrance in Foreign Markets in the Field of Biotechnology and the Consideration of Socio-Cultural Particularities, Munich, GRIN Verlag,


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