Neechie Gear: Pivoting In an Aboriginal Start-Up Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Neechie Gear: Pivoting In an Aboriginal Start-Up Case Study Analysis

Plan B: Wholesale Business Model

Plan B was an attempt to build a wholesale business model which he thinks will be less expensive comparatively to retail stores.

Pros

As working in sort of wholesaler it would be beneficial for the business as the buying rate is much less than the market rate which seems a great profit.
Having the items in stocks can overwhelms a customer’s variety demand as the strategy is to provide items to different retailers at a wholesale price.
By this scheme Netmaker can line up the maximum orders in advance.

Cons

While focusing on the history of Netmaker’s business strategies he has a poor history of wholesaling as in he makes a great profit in 2013 by retail models and then when it comes to wholesale model in 2014 the profit has been declined so this season may become disastrous.
Keeping in mind the concept of wholesale market it requires a lot of assets in comparison with retail market which as an entrepreneur is not easy.
Travelling cost is also increased as the products vary and has to send to different stores in maximum stocks.

Plan C: Focus on Wholesale and Website Sales

As plan A and Plan B didn’t give him the expected growth so he considered some more plans. Plan C is to pay 100% attention on his clothing line through targeted wholesale sales and website sales more and minimizing his other activities.

Pros

By excluding other activities Netmaker can only focus on the wholesale sales and websites sales which keeps his mind on one track.
One of the Pros of only focusing on clothing is to improvise the quality of them by taking by thinking in one direction.

Cons

By implying Plan C his other activities like motivational speaking and event sales would come to an end and it is considered as a huge con as Netmaker earns an additional amount by taking part in those events.
Only focusing on the clothing line by wholesale sales and website sales it require a huge budget which will be affected if Netmaker stops attending those events and motivational speeches.

Plan D: Investment in Pop up Shops

Netmaker proposed his plan D as to invest in setting up a network of pop up shops across Canada. He already setup some shops in Edmonton, Calgary and Winnipeg as these are the most populated places ad can give him a great market. This plan gives him more popularity among the individuals. For making this plan work Netmaker need some investors or partners to give him a hand for executing such idea also he need more workers to join him for looking up after those pop up shops. The revenue will increase but firstly Netmaker has to invest some amount on maximizing the products and fulfilling the workers’ demands.

Plan E: Hiring Sales Manager

Another Plan of Netmaker which is Plan E emerges the concept of investing or hiring sales manager who can set up his daily tasks and handle the Saskatoon retail outlet.

Pros

By hiring a sales manager who can look after Netmaker’s Saskatoon retail outlet will give him a relief from hectic work load.
Now Netmaker can invest his time in other activities as motivational speaking and event sales.
By focusing on the other activities he can earn a desired profit.
He can freely promote his work on events and be the part of people’s eye.

Cons

Hiring an experienced and qualified aboriginal person is a very difficult task as there are minimal people with business degrees or relevant experience who can help him in growing his firm.
If there are aboriginal qualified people with relevant experience available, they are instantly hired by the government.

Decision Criteria

The following points could be considered as the criteria to evaluate various plans.

Increase in sales
Increase in profits
Effective management
Hiring

Decision Matrix

	Plan A	Plan B	Plan C	Plan D	Plan E
Increase in sales	6	5	8	5	5
Increase in profits	6	5	8	5	4
Effective management	3	2	6	6	7
Hiring	3	7	7	6	6
Decision	18	19	29	22	22

After the over view on each and every perspective it is hereby concluded as Netmaker’s should drop the idea of wholesale sales and stick to the retail stores. Hiring an aboriginal person is also a plus point so Netmaker can focus on the other activities and earns the additional cost of $2000 from motivational speaking and events which will also minimize his time schedule and provide him relief from reaching everywhere.

Recommendations

From the above internal and external analysis of the company and the evaluation of various plans considered by Kendal, the optimal solution in this situation is to hire an aboriginal business partners irrespective of the salaries and set up various pop up shops in the areas with high traffic to promote its retail side of business. The hiring of the aboriginal partner will help Kendal to grow the business and divide its responsibilities along with the participation in various community functions that play an important role in the promotion of the business................................

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