Analysis - Mylibros.Com

Topics: Hispanic and Latino Americans, Spanish language, Spanish people Pages: 9 (2617 words) Published: September 30, 2012
“Analysis -”

1. Executive Summary
Firstly, we, team Breakthrough will analyze with theories and principle such as “Bird in the hand”, ”Affordable Loss”, “Institutional”, “SWOT” and “Resource Based View”. Secondly, we will judge whether we should invest or not. If is not appropriate for invest, we will recommend how this firm should be with theories such as “Crazy Quilt” and “Pilot-on-the-Plane”. Lastly, this report is written based on the information as of 2009.

2. Bird in the hand
* 2-1. Components of Bird in the hand
* Starting new business or creating brand and product comes from already existing. Those consist of three components "Who I am", "What I know" and "Who I know". "Who I am" is traits, abilities attributes of the entrepreneur." What I know" is education, experience and expertise background. "Who I know" is your social networks. Those which mean Not needing to wait, Not chasing fantastic opportunities, More than just money, Other people’s means in entrepreneurship. *

* Bird in the hand for
Bird in the hand principle and its components can be clearly found in this case.

Who is CEO Jordan Koene? A bilingual Hispanic and knows English and Hispanic and present situation of e-commerce for English speakers and Spanish speakers in United States. What does he know? He has an educational background in e-commerce and entrepreneurship and he has believed the Hispanic economy is developing strongly. Who does he know? CFO Kevin Antes with a background finance and COO Chris Wallace with a background in design and its development. He also has wide connections with partners which include professionals in sales, Spanish books, education and small business. So he has enough resources to start something new.

When he had started a new business, he was a college student. Hence he has not enough money to put invest but he was not just dreaming. He had decided that selling something on the internet and he has performed it. He did not selling apparel or electronics but books and other media because of influence to a Hispanic community. In this case, The Hispanic culture is very important, because they are a major minority, so a launch marketer like his firm has no competitors but they have huge potentials to grow up. Also, lot of hints or answers in same industry for English people has already existed before he started

A key of initial success of this business is they control only the people and things they knew and they also did not chase or invest for dreaming but act locally in well -known place which reduces the risks and makes more opportunities as a result.

3. Affordable Loss
3-1. Components of Affordable Loss
Risk little, fail cheap, Affordable Loss principle is to make decisions on acceptable downside, rather than predicted upside. Also the Affordable Loss principle is evident in the cognitive process used by expert entrepreneurs. In general they either prefer the cheapest alternative or come up with creative ways of doing things at no cost to themselves. Furthermore, they explicitly see themselves as financially risk-averse and cost-conscious.

* Affordable Loss for
a) is free from discount competition risks. Their primary pricing policy will be to minimize and limit discounting and if necessary provide a discount for visual appearance not as an incentive for price shoppers. This will provide them with a competitive edge over discount book vendors. b) is free from inventory risks.

Decisions on the inventory increase will be determined by the individual books that are sold most through their affiliate network. This way they capture the market for the most demanded books allowing them to maximize revenue, minimize cost, and capitalize on profit. c) is free from risks of change in customer segments. Their customer demographic focused on...
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