Crowdfunding is considered an alternative to traditional angel and venture capital funding that has helped get many business ventures off the ground. The basic idea of crowdfunding centers on pitching a business idea to a large group of people and seeking financial support. Although crowdfunding has existed for hundreds of years, it has recently gone to online platforms. The most successful platforms to date have been Kickstarter and Indiegogo, which have helped many ventures raise initial funding. This case is concerned with two different startups, one started by a twin sister duo (Marla and Annie) and the other by a Babson College student (Hanson). Enerchi Bites is a startup featuring a new food product that was developed out of a passion for fitness and yoga. Identical twin sisters (Marla and Annie Feldman) started experimenting with different combinations of foods with a chia-seed base. Once they had developed three different flavors, they began distributing their products at various yoga conventions. They quickly built some buzz about their new products and were faced with the problem of scaling their new venture. They decided to try a Kickstarter campaign where they would attempt to raise $10,000. They figured this was the amount they needed to help scale up their operations. After the completion of the Kickstarter campaign, the sisters found the final results disappointing as they netted only about $5,000 after expenses from advertising and the rewards that were due to the campaign backers. Think Board is the creation of a Babson student, Hanson Grant. This business venture was born out of one of Hanson's earlier ideas. He had created white board t-shirts. He found that the t-shirt idea was not going to work and was thinking through how to use this to his advantage until his friends connected the dots for him. If he put pieces of the material together, he ended up with an oversized dry-erase board that could be printed to feature any pattern. With the interest from his friends, Hanson thought that he could use Kickstarter to gauge the market and the opportunity. He planned to raise $10,000, but his intent was more focused on marketing his new product. He successfully raised the money and more important than that, his focused marketing paid off as he was contacted by a news station to give an interview. The publicity made the campaign worthwhile for Hanson.
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Case Analysis of Crowdfunding: A Tale of Two Campaigns
Crowdfunding: A Tale of Two Campaigns is a Harvard Business (HBR) Case Study on Innovation & Entrepreneurship , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Crowdfunding: A Tale of Two Campaigns is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Crowdfunding: A Tale of Two Campaigns case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Crowdfunding: A Tale of Two Campaigns will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
Crowdfunding: A Tale of Two Campaigns
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Innovation & Entrepreneurship, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Crowdfunding: A Tale of Two Campaigns, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The Crowdfunding: A Tale of Two Campaigns case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Innovation & Entrepreneurship Solutions
In the Texas Business School, Crowdfunding: A Tale of Two Campaigns case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Crowdfunding: A Tale of Two Campaigns
Step 1 – Problem Identification of Crowdfunding: A Tale of Two Campaigns - Harvard Business School Case Study
The first step to solve HBR Crowdfunding: A Tale of Two Campaigns case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Kickstarter Hanson is facing right now. Even though the problem statement is essentially – “Innovation & Entrepreneurship” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Kickstarter Hanson, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Crowdfunding: A Tale of Two Campaigns.
The external environment analysis of Crowdfunding: A Tale of Two Campaigns will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Crowdfunding: A Tale of Two Campaigns case study. PESTEL analysis of " Crowdfunding: A Tale of Two Campaigns" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Crowdfunding: A Tale of Two Campaigns macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for Crowdfunding: A Tale of Two Campaigns
To do comprehensive PESTEL analysis of case study – Crowdfunding: A Tale of Two Campaigns , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact Crowdfunding: A Tale of Two Campaigns
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on Crowdfunding: A Tale of Two Campaigns
Government policies have significant impact on the business environment of any country. The firm in “ Crowdfunding: A Tale of Two Campaigns ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Kickstarter Hanson is operating, firms are required to store customer data within the premises of the country. Kickstarter Hanson needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Crowdfunding: A Tale of Two Campaigns has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Kickstarter Hanson in case study Crowdfunding: A Tale of Two Campaigns" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Kickstarter Hanson in case study “ Crowdfunding: A Tale of Two Campaigns ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Kickstarter Hanson in case study “ Crowdfunding: A Tale of Two Campaigns ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on Crowdfunding: A Tale of Two Campaigns
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Crowdfunding: A Tale of Two Campaigns ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Kickstarter Hanson can compete against other competitors.
Government Scheme & Subsidies Impact on Crowdfunding: A Tale of Two Campaigns
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Crowdfunding: A Tale of Two Campaigns case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on Crowdfunding: A Tale of Two Campaigns
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Kickstarter Hanson needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact Crowdfunding: A Tale of Two Campaigns
Social Factors that Impact Crowdfunding: A Tale of Two Campaigns
Technological Factors that Impact Crowdfunding: A Tale of Two Campaigns
Environmental Factors that Impact Crowdfunding: A Tale of Two Campaigns
Legal Factors that Impact Crowdfunding: A Tale of Two Campaigns
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Crowdfunding: A Tale of Two Campaigns case study. PESTEL analysis of " Crowdfunding: A Tale of Two Campaigns" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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