Homework 1
Taking the Plunge: New Luxury Ventures Saras Sarasvathy, 2009, University of Virginia Darden School Foundation
Thomas Blanc (UIN: 124006650)
If you were David, what would you do and why?
I can’t deny David’s got several characteristics of an entrepreneur: he has determination, opportunity obsession, creativity. He has the ability to identify and take advantage of a succession of opportunities in its environment: by reading the book “Trading up” he identified a demand for new luxury goods; by talking with the hygienist, he decided to focus on pet food industry; thanks to its market research and attention to pet shops environment, he pinpointed the new “out-of-home” dog-related product category, and finally by watching a dog drinking in a park he decided to launch portable drinking water product for dogs. The “Pup Cups” product is the main strength of David’s new venture: it is a totally new product, first in the new “out-of-home” category. However there are several reasons why David is so nervous taking the plundge. Firstly due to weaknesses in his Business Model: it has only one product line, no infrastructure and no distribution channel. Secondly, there are threats in the business environment, such as big players in the dog food industry likely to launch a product before him.
The previous SWOT analysis emphasizes a lack of resources and capabilities, essential to start the new venture. Moreover, we need to take into account personal factors: David has grown up since the opportunity he had to launch a new venture after completing its MBA. He now has a good CV, a brilliant career of consulting: resigning would imply a loss of comfort for instability and risks. Once one is involved in the career development process of companies, it’s hard to stop it.
Thereby many factors suggest David shouldn’t give a call to his boss. However, despites every risks, I would encourage him to make it. He inherited the entrepreneurial spirit from his father and launching his new
Thomas Blanc (UIN: 124006650)
If you were David, what would you do and why?
I can’t deny David’s got several characteristics of an entrepreneur: he has determination, opportunity obsession, creativity. He has the ability to identify and take advantage of a succession of opportunities in its environment: by reading the book “Trading up” he identified a demand for new luxury goods; by talking with the hygienist, he decided to focus on pet food industry; thanks to its market research and attention to pet shops environment, he pinpointed the new “out-of-home” dog-related product category, and finally by watching a dog drinking in a park he decided to launch portable drinking water product for dogs. The “Pup Cups” product is the main strength of David’s new venture: it is a totally new product, first in the new “out-of-home” category. However there are several reasons why David is so nervous taking the plundge. Firstly due to weaknesses in his Business Model: it has only one product line, no infrastructure and no distribution channel. Secondly, there are threats in the business environment, such as big players in the dog food industry likely to launch a product before him.
The previous SWOT analysis emphasizes a lack of resources and capabilities, essential to start the new venture. Moreover, we need to take into account personal factors: David has grown up since the opportunity he had to launch a new venture after completing its MBA. He now has a good CV, a brilliant career of consulting: resigning would imply a loss of comfort for instability and risks. Once one is involved in the career development process of companies, it’s hard to stop it.
Thereby many factors suggest David shouldn’t give a call to his boss. However, despites every risks, I would encourage him to make it. He inherited the entrepreneurial spirit from his father and launching his new