Knowledge that Transforms

Snappy Auctions presents the story of an online auction business founded from the personal aspirations and efforts of Debbie Gordon who sought to bring together sellers lacking technological expertise and potential buyers. Having rapidly expanded Snappy Auctions to 100 franchise agreements since its launch in 2003, Gordon confronted the challenge in 2006 of evaluating the sustainability of her drop–off store business model and of deciding whether to seek external financing to support further rapid venture growth.

Todd Wichmann and Rich Owen must decide whether to leave their dream jobs working for Procter & Gamble (P&G) and start their own business. They need to engage in the business planning process to decide whether to purchase Oxydol, one of the oldest detergent brands at P&G. This includes assessing whether Oxydol represents a good opportunity and if they can turn around the brand's declining sales. The most difficult challenge for Todd and Rich, though, involves finding venture capital funding for purchasing a detergent brand at a time when venture capitalists invest mainly in high technology and Internet ventures.

This case concerns a U.S. start–up's efforts to license and launch a Japanese puzzle known as KenKen. The case provides a historical review of the puzzle's conceptual emergence and subsequent commercialization, allowing students to explore the general challenges associated with launching an innovative, new product into a dynamic market of uncertain size and structure. The case facilitates discussion of qualitative (i.e., business model selection) and quantitative (i.e., market size and profit estimation) issues.

Whitetracks Design, Inc. is one of the leading U.S. manufacturers of snowshoes. The business is owned by three individuals who are contemplating whether it should be sold now or continue to be operated for a later sale at a potentially enhanced business value. All the Whitetracks owners are now in their early 60s and are hoping for a comfortable retirement. Whether they retire sooner or later is dependent upon the proceeds from selling the business. Prior to selling, the owners want an accurate determination of the firm's value to ensure proper returns for years of hard work and personal investment. From an entrepreneurial standpoint, this case raises the issues of how private companies can be valued so that they can be subsequently managed for value creation. This is important as a 2005 survey found that only 60% of private company managers had at least some idea of their firms’ value, and two thirds of these managers said that such firms’ value was based upon management estimates or wishful thinking. To assist with determining the value of their business, the Whitetracks owners hired a merger and acquisition consultant, who is a coauthor of this case. The consultant will assist the owners in valuing the business and in making the decision to sell now or continue to operate the business.

Brazilian entrepreneurs founded Trikke Tech Inc. in the United States in 2000 after an unsuccessful attempt to market their product—a human–propelled vehicle similar to a scooter—in Brazil. By 2006, Trikke Tech was a new international venture with manufacturing in China, marketing activities in the United States, R&D in Brazil, patents pending in 35 countries, and sales in 17 countries. This case study describes the company's initial steps and its strategy in the U.S. market and outlines the future challenges faced by the entrepreneurs. Specifically, the case addresses the question of how to position the new product to achieve market penetration in the United States, and which strategies and marketing programs to adopt, considering the firm's limited resources.