Concept of the O-Fold: Business Model and Leverage

Topics: Strategic management, Marketing, Management Pages: 2 (659 words) Published: April 2, 2013
1. Select which business model Alex should pursue and defend your answer. The business model and leverage that students choose will likely be directly related to their confidence in the concept of the O-Fold. Some points that students should discuss in regards to their choice include: the amount of risk they are taking, the potential for profits, the time commitment required by Alex, how long Alex plans on running the business, etc. 2. Perform a SWOT analysis for the business model you selected. The following table shows a generic O-Fold SWOT analysis that shows common characteristics for each business model. Students can also list characteristics that are specific to the business model they selected. Strengths Simple manufacturing process Patent protection High profit margin Low start up cost Well defined target market –business travelers | Opportunities Increased use of carry-on luggage Airlines charging for checked luggage High quality suits are not made with wrinkle-free fabric | Weaknesses Only one product Small marketing budget Inexperienced management No reputation No working capital | Threats Wrinkle-free clothing Increased acceptance of business casual O-Fold concept will be copied if successful More video conferencing and less business travel | 3. As a part of the management team, how would you handle distribution and marketing of the O-Fold? How student‘s answer this question will depend on which business model they decided to pursue. Some options for marketing include: company website, SkyMall magazine, trade shows, etc. Distribution could be obtained through a small business relationship with a UPS, FedEX, or American Postal Service. As a start up business, it would be beneficial to outsource the distribution thus minimizing fixed costs at the expense of increasing variable costs. 4. What is the exit strategy for your selected business model, how long will it take you, and what key points will signal the...
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