Video Concepts, Ince
Team 2
Video Concepts, Inc. 1. Describe Video Concepts’ business model. Has it been successful? Would you consider Chad Rowan to be a successful entrepreneur? Why or why not?
A company’s business model is defined as, “management’s blueprint for delivering a valuable product or service to customers in a manner that will generate ample revenues to cover costs and yield an attractive profit” (Thompson, 2012). Video Concept’s business model is based on providing value to its customers through high quality service, the ability to reserve videos, and its free home delivery. Video Concepts’ profit formula revolves around using its $1.99 rental price per night to generate revenues and increase its market share.
Chad Rowan has proven himself to be a successful entrepreneur through both the success and growth of his lawn service business which he operated throughout high school and college, generating enough profits to pay for his college tuition, and by starting Video Concepts and growing it into a profitable, viable business. Chad also takes proactive steps in ensuring the viability of his business through employee training and maintaining his business strategy; however, his current struggle is largely due to his lack of strategic management. Chad did develop a strategic vision of “expanding Video Concepts into several similar-sized towns within a couple of hours driving distance,” but this is where his strategic process stopped. Chad failed to set any financial or strategic objectives, resulting in a lack of a way to measure the success of his business. Without any objectives against which to measure success, Chad was unable to evaluate progress towards meeting his strategic vision. 2. Describe the macro-environment of the video rental industry.
Two major components of the macro-environment that affect the video rental industry include demographics and technological factors. Lexington, North Carolina is a town of only about 28,000 people. The small size
Video Concepts, Inc. 1. Describe Video Concepts’ business model. Has it been successful? Would you consider Chad Rowan to be a successful entrepreneur? Why or why not?
A company’s business model is defined as, “management’s blueprint for delivering a valuable product or service to customers in a manner that will generate ample revenues to cover costs and yield an attractive profit” (Thompson, 2012). Video Concept’s business model is based on providing value to its customers through high quality service, the ability to reserve videos, and its free home delivery. Video Concepts’ profit formula revolves around using its $1.99 rental price per night to generate revenues and increase its market share.
Chad Rowan has proven himself to be a successful entrepreneur through both the success and growth of his lawn service business which he operated throughout high school and college, generating enough profits to pay for his college tuition, and by starting Video Concepts and growing it into a profitable, viable business. Chad also takes proactive steps in ensuring the viability of his business through employee training and maintaining his business strategy; however, his current struggle is largely due to his lack of strategic management. Chad did develop a strategic vision of “expanding Video Concepts into several similar-sized towns within a couple of hours driving distance,” but this is where his strategic process stopped. Chad failed to set any financial or strategic objectives, resulting in a lack of a way to measure the success of his business. Without any objectives against which to measure success, Chad was unable to evaluate progress towards meeting his strategic vision. 2. Describe the macro-environment of the video rental industry.
Two major components of the macro-environment that affect the video rental industry include demographics and technological factors. Lexington, North Carolina is a town of only about 28,000 people. The small size