TOUGH MUDDER Essay Example
Categories of Growth Strategies for New Ventures
From an evaluation of the operations of the company and the industry it operates in, it was found out that the company belonged to the new product in existing category ventures. The mud run series was a business that was ongoing but the owners of Mudder decide to add more flair and fun to their new business model of the run. This can be substantiated by references on reads from the concept. The new products in existing categories are characterized by the fact that they have innovative designs over the already existing products in the market[ CITATION WEF l 1033 ]. Tough Mudder made sure in bring in some military concepts in the already existing product as a way of connecting to the nation and the veteran community. The products in this category are also characterized by the fact that they have new business models that help them beat their competition. This places the company into this category since it changed the face of the business from a competition to an event.
If the categories were to be added, it would mean that there will be new ways of evaluating the new venture companies. The basic principle will be focused on how that strategy improves the growth of the company. Innovative product in existing category venture can be added to the categorization. This will target companies whose success is dependent on their new innovation. New target market venture canna so be added to the category. In this criteria the basis will be on companies that achieve growth after achieving new target market by the same product in the market.
Areas of concern
When the two co-owners of Tough Mudder presented their business plan, the evaluators were very critical of it and almost dismissed it. From the view of the evaluators, the plan was unrealistic since it broke many of the rules that kept organizations in that lie of business running. The main factor that drew criticism for the plan was the fact the it was not focused on the serious competitive trainer but the easy going kind of person. From a traditional market that is focused competition this looked as a direct fail in the market. This however, was not the case when the idea of income is brought into play. People gain more utility having than when competing which meant more participation in the event.
The second factor that drew negative feedback was the removal of the time factor in the mud run. This according to the evaluator, meant the removal of motive to attend which is, to compete. Dean and his partner on the other hand saw this as an attraction for those seeking to have fun which in real sense were more than those wishing to compete hence the viability of the plan. Changing the face of the business to an event other than a competition was another area of concern. According to the owners they knew that events have more people as opposed to competitions and they also attract families to participate hence killing two birds with one stone.
WEF. (n.d.). 27 Global Entrepreneurship and the Successful Growth Strategies of Early-Stage Comph anies.
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