Question 1: At this point in 2001, would you continue with venture, or stop?Why?
I would continue if I were the leaders of Savage Beast.
1.End user Analysis
The service was an"Intel inside" kind service .It was an apple-on-the-head sort of moment.Their end user's base was very large and constantly growing.People bought billions of songs via online music stores.This service helped music downloader more professionally to select the music.
This service was very creative.The only problem is , for most big customers like Amazon and CD-now, the size of our database is too small to fit theirs. But Savage Beast hired many music analysts(about 40 at its peak) to speed up.The database would be expended soon.
At the point in 2001, my suggestion was trying to search smaller customers.Smaller online store's database was smaller. Savage Beast could develop their tool closer with the customer. Realized revenue step by step. It firstly can solve the cash issue. Also, it can make more customers and end users understanding their service.Once their database get big enough, they can easily make deal with larger customer like Amazon and CD-now, or even create online store themselves.
Question 2:At the end of case in 2003, would you continue with the venture,or stop?Why?
I would end the business if I were Tim.
The business is very creative.I also trust in future, some similar company will come out and be successful.
But the critical issue Savage Beast was facing several issues which they can't solve in short time. Customer's status:
As for AOL, after 12 months pursuing, there was still no apparent progress . As for Best Buy, they can't afford more expense to develop "offline kiosk model". Cash issues:
3-years' Salary deferring badly hurt leadership and employee's motivation.There was 1M salary deferring. Even Tim can borrow 650K from private investment firm, the problem wouldn't...