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 also get a feel for things to expect when starting up a small business. This also will help with getting angel investors to get on board which will begin in the next phase. The walk phase is pitching the idea to angel investors, have a patent, a developed distribution channel and a marketing strategy. This may provide an exit strategy for investors and also for other companies to want to buy the O-Fold. The run phase would be the phase that Alex decides to continue with the company or sell his interest in the company. He also at this point would have to be producing large quantities. This strategy will allow Alex to make decisions at any of the three phases and he would have to restrict himself to only one.
2. Perform a SWOT analysis for the business model you selected.
The following SWOT analysis captures some of the key elements that may strengthen or hinder the progress of O-Fold: Strengths
• Innovative and practical design; light weight and easy to carry • With the increase in airline cost and the cost of luggage, having a carry-on that is spacious and convenient can do the trick. Weaknesses
• The company and product is new and doesn’t possess the consistent capital needed....