Spin Master Essay

510 Words3 Pages
1. Harary, Rabie, and Varadi are successful and young entrepreneurs and founders of Spin Master. Since their start-up company had been facing the unique and ill-structured problems, they needed to take heuristic problem-solving as solution. It leaded them to become more non-programmed decisions type. At the beginning of their start-up company, their first decision was that they had to find out a way to create the product “The Earth Buddy” that fits the market need. It was creative approach and unstructured movement. Then fortunately the product caught Roots Canada Ltd. attention because it was environmental friendly and perfect matched for urban-adventurer image of Roots Canada Ltd. After that, Spin Master became famous as they have Roots for their reference and received an enormous order of 500,000 products from K-Mart in the United State. But the order from K-Mart were huge, so they decided to move their operations from Harary’s kitchen to a factory staffed by 200 employees to start the production. However, the product “The Earth Buddy” sales in the first six months was an unqualified hit. Later, they needed to make an important decision to create a new product that makes the company as successful as their beginning to follow up. They create a toy “Devil Sticks” can be used at public events and it had huge success again by…show more content…
Based on the history of Spin Master, it can be clearly seen that rapidly creating innovative products is one of the main selling points to its consumers of the company. Their new profound decisions and creativity in making a new is admirable but there is a trap called “escalating commitment”. This could happen if Spin Master decides to increase the investment of innovation that costs more time and money, but the result may not satisfy if it does not match the market
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