O-Fold Case Study

661 Words Jul 7th, 2013 3 Pages
Case Study # 2 The O-Fold Innovation
Select which business model Alex should pursue and defend your answer.
I think Alex should pursue the business model which uses the Crawl-Walk-Run Strategy. By using this strategy, he can really make use of the characteristics of the other strategies to control and make money from his business idea. The Crawl-Walk-Run strategy has a three step process of growing a company. The first step is crawl, where Alex and his brother can produce the O-Folds on their own. They can inexpensively market and distribute locally, online, door-to-door, or use flyers. He can collect market data to support his business idea and also get an idea for what to expect when starting up his business. This would help with
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- There is an abundance of untargeted clients and business opportunities. Threats - Recognized, bigger, more knowledgeable companies that have already acquired the profitable target market. - Is the target market sizeable enough to make money?

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 supplying locally to try to get a rough estimate as to how people respond, while keeping costs minimal. Going door-to-door to local residents, talking to local luggage stores, lock-in a website (before somebody snakes the domain name in an attempt to profit from the sale of it), set ads in the community paper. When enough income is attained, then advertise in legitimate travel magazines, airline catalogs and attain kiosks in the larger terminals.
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 propose that after 3 years or when he feels the expansion cycle is nearing (probably due to new entrants to the market), Alex should sell it off and allow another more experienced company to squeeze whatever they can out of the recession cycle. The challenge will be to determine the exact point when to do this.
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At what points should Alex consider bringing on additional management? What positions should he fill

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