Essay on Case 3: the O-Fold Innovation for Preventing Wrinkles

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Case 3: The O-Fold Innovation for Preventing Wrinkles

The O-Fold Innovation for Preventing Wrinkles: A Good Business Opportunity

1. Select which business model Alex should pursue and defend your answer.

I choose for Alex to pursue the business model which employs the Crawl-Walk-Run Strategy. With this strategy, he can actually utilize some of the aspects of the other strategies to operate and profit from his business idea. The Crawl-Walk-Run strategy has a three step process of growing a company. The first phrase is the crawl phase in which Alex and his brother can produce the O-Folds themselves. They can market and distribute them locally, online or door-to-door. He can gather some market data to back up his business idea and
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Threats • Established, larger, more experienced companies that have already captured the commercial target market. • Is the target market substantial enough to make a profit?

3. As a part of the management team, how would you handle distribution and marketing of the O-Fold?

As a member of the Management team, I would start distributing locally. Going door-to-door to local residents; speaking to local luggage stores; establish a website and sell some there; place ads in the local paper. Once enough revenue comes in then we can advertise in travel magazines; airline catalogs and on airline websites. Another possible suggestion would be to open a small store at the airport where we can have our target market right at our finder tips.

4. What is the exit strategy for your selected business model, how long will it take you, and what key points will signal the time to exit?

As a part of the management team, I would suggest that between 4 to 5 years or once there are new entrants to the market, Alex should sell his interest and allow another more experienced company to acquire the company.

5. Research on your own how angel investing deals are designed. Then outline and defend the features of the deal that you would pitch to investors (funds provided, interest rate, equity, etc.)

The product of O-Fold is an innovative design that can be convenient for business
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