Cold Chain Decision

A startup can hold fresh tomatoes at −4 °C without freezing them, for more than six months. It has one patent, little capital, and three ways to take it to market. Work the six tasks, then commit to one.

Group work90 minutes 6 tasks0 / 6 complete

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The case

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Background. A startup has developed a patented refrigerated container system that keeps fresh tomatoes in perfect condition for more than six months. The system controls humidity and holds a temperature as low as −4 °C without freezing the load. The team has strong R&D and the patent. It has no factory, no global service network, and little capital.

The three paths. The team is debating which one to fund. It can afford one.

A · License
License the technology to established reefer container manufacturers. Royalties scale with the OEM. No factory, no service network, no control.
B · Manufacture
Build the container and sell it directly to logistics companies. Own the margin, own the capital cost, compete with CIMC and Singamas.
C · Ship tomatoes
Operate a tomato delivery service internationally using the new containers. Highest potential return, highest working capital, and you become a customer's competitor.

Market context. Tomatoes are one of the most produced vegetables in the world. Around 13–14% of all food is lost between harvest and retail; in fruit and vegetables moving through a weak cold chain the loss runs far higher. The reefer industry has two layers: container makers (CIMC, Singamas) and refrigeration unit makers (Star Cool, Thermo King, Carrier Transicold). Buyers are concentrated in every one of the three models.

Exhibit 1 · Tomato exports by country, 2023 (US$ billion)
01.0 2.03.0 MexicoNetherlands SpainMorocco $3.0B$1.9B $1.2B$1.1B

Top importers: United States, Germany, France. Mexico ships mainly to the US; Spain serves Germany and France; Morocco is growing fastest and has the weakest cold chain.

Exhibit 2 · Where the product is lost (% of volume)
0%10% 20%30% 13.5%30%5% All food,global average Fruit & veg,weak cold chain With the newcontainer

The 13–14% figure is from the case. The 30% and 5% are the working assumptions you will use in Task 3 — change them if you can justify a different number.

Exhibit 3 · What is moving in the industry
ForceWhat it does to demand for efficient reefers
Red Sea reroutingAdds roughly 10–14 days to affected voyages. Longer time at sea means more spoilage on exactly the routes that matter.
IMO EEXI / CIIDecarbonisation rules push carriers towards energy-efficient reefer systems. A unit that runs colder for less power gets easier to sell.
Buyer concentrationA handful of OEMs, a handful of shipping lines, a handful of retail importers. Whichever path you pick, you sell to very few, very large buyers.

The case gives this trend qualitatively, so there is no series to plot. Do not invent one — argue from the direction and the named drivers.

The same external world hits the three options differently. Fill one line per factor per option.

Points to tackle. How do global trade flows and shipping disruptions affect each option? Which option benefits most from the IMO environmental rules?

FactorA · License B · ManufactureC · Logistics
Political
Economic
Social
Technological
Legal
Environmental
What goes in each box
Your answers are inside this prompt — paste it into ChatGPT or Claude

Rate each force high, medium or low for each option, and say who makes it so.

Points to tackle. Who are the buyers in each model — OEMs, carriers, retailers? How concentrated are they? Are there realistic substitutes, such as modified-atmosphere packaging or edible coatings?

ForceA · License B · ManufactureC · Logistics
Supplier power
Buyer power
Rivalry
Substitutes
New entrants
What goes in each box
Your answers are inside this prompt

Use Exhibits 1 and 2. Pick an exporter, set the spoilage assumptions, and work out how much value is destroyed today and how much the container saves. This is the only number that tells you whether any of the three options is worth doing.

Exporter
Spoilage today %
With the system %
Price $/kg
Your figures — work them out, then check
Value lost today ($M)
Value lost with system ($M)
Value saved per year ($M)
Whose money is this, and what would they pay for it?
What goes in each box
Your figures are inside this prompt

What the startup has today, against what each option needs.

Points to tackle. Which gaps are biggest? Which option best matches the strengths that already exist?

CapabilityStartup today Needed for ANeeded for BNeeded for C
R&D / technology
Manufacturing
Service network
Capital
Certifications
The biggest gap, and how you close it — buy, partner or build
What goes in each box
Your answers are inside this prompt

Pick the option you are leaning towards, then build the SWOT for it. Click a card to choose.

A · License
Royalties from OEMs
Click to choose
B · Manufacture
Build and sell containers
Click to choose
C · Ship tomatoes
Run the service yourself
Click to choose

Points to tackle. Use the exhibits to justify strengths and opportunities. Think about the risk of imitation once the patent publishes, and about regulation.

StrengthsWeaknesses
OpportunitiesThreats
Cross one strength with one opportunity — what action comes out?
What goes in each box
Your SWOT is inside this prompt

Commit to one path and phase it. An answer that keeps all three open scores nothing.

We recommend — click to choose
A · License
Click to choose
B · Manufacture
Click to choose
C · Ship tomatoes
Click to choose
Why this one and not the other two
PhaseWhat you do, and what it provesMain risk and how you cut it
1 · 0–12 months
2 · 12–24 months
3 · 24+ months
What evidence in Phase 1 would make you abandon this path?
What goes in each box
Your recommendation is inside this prompt

Where you stand

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