PunchTab Inc. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Case Summary
• Ranjith Kumaran an entrepreneur has a bachelor of engineering degree in computer engineering. In theearly stage of his professional life, he worked in the startup business at Silicon Valley. After obtaining experience from there, he along with Amir and Khalid Shaikh (his partner at Celoxica Company)starteda business in 2003 named YouSendIt.
• The main operation of the company is to provide secure Web-based digital file delivery, for large files. They used Venture Capitals for initial financing of the company.
• In 2005 the operations of the company switched from advertising-based model to subscription-based model. After the change, Kumaran became Vice President of board member and product.Meanwhile, a new operating CEO was hired.
• After the change, Amir and Khalid left the company because the business moves apart from its main objective. At the same time, Kumaran also realized that the company becomes too much diversified and he does not have enough time to manage it.
• Meanwhile, Kumaran encounters an opportunity which is to run aloyalty program. To catch this opportunityopportunity,he intends to incorporate a new company PunchTab Inc.
• PunchTab Inc. will be an internet-based company. The company will operate thecustomer loyalty based program for websites owner, mobile application developers, and brands.
• This program will allow entities to reward their users with loyalty points for actions they took on sites like making purchases, visiting the site daily, sharing site content on thesocial network and etc.
• To analyze the success of the proposed program Kumaran launched a private PunchTab beta site. The results of this launching were appealing one and thereforeKumaran intends to increase operation and grow PunchTab Inc.
PunchTab Inc. Harvard Case Solution & Analysis
• To achieve this Kumaran discussed the idea with his co-founder Mehdi Ait Oufkir and both decided to pursue it. To finance PunchTab they identify some sources like Venture Capitals (VC), individual angel investors, super angel funds and Incubators.
Evaluation of PunchTab Business and its attractiveness
• PunchTab will be an internet-based company. This is technology oriented era as the company uses updated technology, therefore, it may obtain success.
• Furthermore, PunchTab will operate customer loyalty based-program. This will be welcomed by big brand companies having aweb presence. Because from Kumaran research we can conclude that companies of this sector (like airlines, apparel vendors, and consumer electronic stores)want this kind of program but does not intends to develop one.
• I would estimate the value of the PunchTab business to be around $ 1500000 because of the team, the idea and the previous assets and projects of Ranjith Kumaran. PunchTab is a highly attractive investment opportunity due to the reasons listed above. Furthermore, Kumaran also seems like a hardworking, innovative and a problem solving leader and he has a successful track record of creating and making the business successful. He has always learned from his failure which makes him a true experienced businessman.
• Furthermore, Kumaran conducts a detailed analysis of PunchTababout the staff which should be hired in it, about its culture, and about their strength and weaknesses. Along with this, they also describe roles and milestones of key staff. This all indicates a good management and hence a bright future of PunchTab........