Optical Distortion Inc Group 5 Section 
Table of Contents
I. Case Fact 3
II. Case Analysis 2
Company
Competition
Customers
III. Pricing Strategy 2
Skimming -> penetration
IV. Recommendations 2
Case Facts
Robert D. Garrison working with Ronald Olson invented in 1965 the ODI lens to mimic the effect of cataracts on chickens
The contact lens for use on chicken was originally designed by Robert Garrison and collaborations were made with Ronald Olson to test and refine the lenses
In 1966 an investor saw the project feasible and they had formed a corporation; Optical Distortion Inc.
The company was formed in response to huge opportunity lying due to inefficient practise of debeaking
The process of debeaking carried a host of problems such as trauma, temporary weight loss, and retardation of egg production.
The company had 2 most important assets:
United States product patent on the ODI contact lens
Company’s contract with New World Plastics.
ODI agreed to pay New World $50000 & to purchase lens exclusively from New World
Several technical difficulties were there with the product:
Early prototypes did not always remain in the chicken’s eyes
Frequently caused severe irritation in the last month of chicken’s 12 month laying life
Retention problem was solved by modifying the size of the lens
New World sold lenses to ODI at a price of $0.032
Injection mold supplied by ODI to New World at a cost of $12000 each
California, North Carolina and, Georgia accounted for 25% of nation’s chickens
The number of small farms has been declining at the rate of 25% per year
Hierarchical type of social order was established through fighting and pecking
Cannibalism was a greater problem when birds were confined in cages
Replacing dead bird also disturbed the peck order
Debeaking reduced mortality rate from 25%(in case of full beak) to 9%
Debeaking led to loss of 1 egg/chicken per 5 months
A crew of 3 was used for debeaking at $2.50/hour for 220
I. Case Fact 3
II. Case Analysis 2
Company
Competition
Customers
III. Pricing Strategy 2
Skimming -> penetration
IV. Recommendations 2
Case Facts
Robert D. Garrison working with Ronald Olson invented in 1965 the ODI lens to mimic the effect of cataracts on chickens
The contact lens for use on chicken was originally designed by Robert Garrison and collaborations were made with Ronald Olson to test and refine the lenses
In 1966 an investor saw the project feasible and they had formed a corporation; Optical Distortion Inc.
The company was formed in response to huge opportunity lying due to inefficient practise of debeaking
The process of debeaking carried a host of problems such as trauma, temporary weight loss, and retardation of egg production.
The company had 2 most important assets:
United States product patent on the ODI contact lens
Company’s contract with New World Plastics.
ODI agreed to pay New World $50000 & to purchase lens exclusively from New World
Several technical difficulties were there with the product:
Early prototypes did not always remain in the chicken’s eyes
Frequently caused severe irritation in the last month of chicken’s 12 month laying life
Retention problem was solved by modifying the size of the lens
New World sold lenses to ODI at a price of $0.032
Injection mold supplied by ODI to New World at a cost of $12000 each
California, North Carolina and, Georgia accounted for 25% of nation’s chickens
The number of small farms has been declining at the rate of 25% per year
Hierarchical type of social order was established through fighting and pecking
Cannibalism was a greater problem when birds were confined in cages
Replacing dead bird also disturbed the peck order
Debeaking reduced mortality rate from 25%(in case of full beak) to 9%
Debeaking led to loss of 1 egg/chicken per 5 months
A crew of 3 was used for debeaking at $2.50/hour for 220