Ben Kaufman founded Far-Out in 2009 to enable anyone with a product thought to get a web-based network of people to help improve and evaluate the idea, and potentially bring it to market. Each week, the company chose three products into the research and development procedure, out of more than 1,000 submitted online. It paid 10 percent of third party revenues, and 30 percent of direct revenue, to its community members predicated on their involvement in developing products-more than $2 million in 2012.
Despite these indications of success, the organization faced substantial challenges. Margins were not high, and needed to be dramatically enhanced before the company would become lucrative. The product development model, using both online players and internal staff, was stressed by the ever-growing amount of products.
The supply chain, relying on external production, needed to adjust to a continual stream of new products. And retail partners were not well suited to the Quirky version, retailers focused on, a few highly sold out products. This case challenges students to address the unique challenges confronting the firm, and describes the business model used by Quirky.
Quirky A Business Based on Making Invention Accessible Case Study Solution
PUBLICATION DATE: August 07, 2013 PRODUCT #: GS84-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
Related Case Solutions & Analyses:
Does IP Strategy Have to Cripple Open Innovation
Leaders Wanted: Chinese Athletic Vancouver Association
The Center for Creative Leadership
The War for Management Talent in China: SPSS China
Precision Controls
Automated Decision Making Comes of Age
Power Dynamics in Organizations
Yataro Iwasaki: Founding Mitsubishi (B), Spanish Version
Leading the Tata Group (A): The Ratan Tata Years
Ricardo Semler: A Revolutionary Model of Leadership (Spanish) Spanish
