Study Guides (248,149)
Canada (121,345)
Business (1,240)
BU121 (203)
Laura Allan (111)
Final

BU 121 : BU121 GEL Analysis Example -New Venture Project (CAME 4th IN THE FINALS)

10 Pages
492 Views
Unlock Document

Department
Business
Course
BU121
Professor
Laura Allan
Semester
Fall

Description
2013 KinPower Mawadda Basir Tom Daly Muhammad Raza & Marie Rosszell [GEL ANALYSIS] An investigation of the three main success factors for a business -Great Customers, Easy Sales, Long Life- and how KinPower's business model meets these criterion. Table of Contents Introduction..................................................................................................................................................3 Section 1: Great Customers..........................................................................................................................3 Section 2: Easy Sales.....................................................................................................................................4 Section 3: Long Life.......................................................................................................................................5 Section 4: Overview of Compensating Tactics and their Results..................................................................6 Conclusion.....................................................................................................................................................8 Next Steps: KinPower's Action Plan..............................................................................................................9 Appendix.....................................................................................................................................................10 Basir, Daly, Fatu, Raza & Rosszell 2 Introduction American football coach Vince Lombardi once stated, “perfection is not attainable, but if we chase perfection, we can catch excellence.” Using the GEL analysis to identify KinPower’s strengths and weaknesses, we can chase perfection by determining the compensating tactics necessary to catch excellence. Great Customers. Easy Sales. Long Life. These are the three components of GEL that KinPower will strive to perfect for an attainable and successful business career. Section 1: Great Customers Table 1.1 “G”: Great Customers, pg 17 Desired Excellent Average Poor Compensating Tactics Yes No Customer Number High KinPower x Characteristics Ease of Finding Easy KinPower x Spending Patterns Prolific KinPower x (Many) Customer $ Value of Sale High KinPower x Value to Repeat Sales Many KinPower x Company Ongoing Sales Low KinPower x Support The characteristics of KinPower’s market are very profitable due to the high number of customers, the ease with which they can be located, and their relatively favourable spending patterns. In proportion to the output KinPower can produce, the number of potential customers is extremely high; KinPower can acquire less than 5% of the student population and it would still need at least 5 booths operating for a minimum of 8 hours a day every business day to cover the demand. Customers are easy to locate as they are all in one location (the university) at some point. Our advertising can then be targeted to key points around campus, which is a relatively small marketing area. Through our survey, we also found that setting up in high traffic areas such as the Athletic Complex and the Concourse would be preferred – thus allowing us to simultaneously advertise our services to passers-by. In regards to spending-patterns, students do have a low discretionary budget. However they are also drawn to novel and helpful success tools. Our survey of 200+ students showed that approximately 85.6% of students are stressed during exam time, and 70.3% surveyed said they would use our service because they believe it will relax them. Basir, Daly, Fatu, Raza & Rossze3l Therefore there is demonstrated demand, and at a price point of $5, the low-cost feature of our service is designed to be student budget-friendly and unmatched by competitors (see exhibits 1-3). While the value of each purchase is low, the potential for repeat sales and the lack of sales support needed makes KinPower’s target customers valuable. As there are no variable expenses only fixed start-up costs, the low dollar value is not a threat to our long-term profitability. As a social venture, sustainability is the goal and any profits generated are donated to the Anxiety Disorders Association of Canada (ADAC). Adding in the one-time use, and "walk-in" nature of our service encourages repeat sales. As this is not a product, but an immediate service, ongoing sales support is non-existent except in the instance of injury, in which case the situation would be monitored. Overall our customers bring considerable value to KinPower. Section 2: Easy Sales Table 1.2 “E”: Easy Sale, pg 32 Desired Excellent Average Poor Compensating Tactics Yes No Value to How Important Important KinPower x Customer Competitive High KinPower x Advantage Price/Value Low KinPower x Relationship Customer Entry Points Many KinPower x Acquisition Sales Support Little KinPower x Cost Required Promotional Low KinPower x Activities KinPower's value to students stems from bringing down a service that is often categorized as a luxury to something students can afford. It is also novel and furthers a prominent social cause. While KinPower’s premise can be easily replicated, the incentive for competitors to copy our business model is extremely low due to its minimal revenue potential. Furthermore, we have the first-mover advantage, which generates brand loyalty, and we also possess the knowledge and experience of starting such a business. This means we can franchise our business idea rather than expand to new locations on our own, thus trying to avoid competition or unauthorized replication at other universities. Basir, Daly, Fatu, Raza & Rosszel4 KinPower has two main entry points which target both the studious and athletic. Minimal customer support is necessary for these locations because no maintenance or trouble-shooting is required, and our drop-in style requires very little human capital in terms of administration. Regarding promotional activities, creative ideas will be necessary to get past all the other advertisements on campus; however the time in which KinPower operates (exam time) usually brings with it very minimal club or campus activity, -thus laying open the entire campus for our strong marketing. Section 3: Long Life Table 1.3 “L”: Long Life, pg 47 Desired Excellent Average Poor Compensating Tactics Yes No Profit Per Margins High KinPower x Sale Cross-Selling and Up- Much KinPower x Selling Ongoing Product Costs Low KinPower x Inve
More Less

Related notes for BU121

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit