By: Jesse Born
Select which business model Alex should pursue and defend your answer. Alex should pursue a crawl-walk-run strategy as it serves a purpose of testing the market for the potential of succeeding. In addition, Alex can incorporate the other three strategies as well to help specifically with maintaining the going concern of his business. Having little experience of being in the business world due to in-progress education, this will help him plan the strategy needed to attract angel investors when approaching the walk phase of the strategy. Having the analytical mindset to formulate a cost-benefit analysis of his company, he will use this as a foundation for beginning the operations of the company. During the beginning, Alex should figure out how he plans on distributing his product whether it would be online or start with the local community. At the walk stage, Alex would be looking at the company today and analyze what’s going on with the business and begin approaching angel investors about investing in a very unique product that looks promising with the past trends of growth in sales. More than likely, Alex will be staying at the walk phase until his business is thriving and able to sustain a competitive advantage and be financially solvent due to past year’s profits. When this is accomplished, Alex can make an executive decision to implement one of the other strategies and give him more time to think of an exit strategy that would be in the best interest of him and his investors. However, the first goal for Alex is building enough capital to purchase a patent to avoid competitors from duplicating his sole product. Angel investors would be more inclined to invest in Alex’s company when there is a patent for the O-Fold and five-year business plan that demonstrates the profitability and goals he has for his company. Perform a SWOT analysis for the business model you selected.
The strengths of the...