Shutout Solutions Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Residual income and rewards

The main purpose of the residual value is to calculate that how much return the company has earned through its overall business activities. It residual value results in positive, then it shows that the company has achieved minimum level of return on its investment of time and resources. However, if the value presents negative numbers, then it may reveal that the company is unable to achieve minimum level of return on investment.

The case of shutout Solution shows negative residual value for both the current and prior years despite of getting first mover advantage from its innovative product, the company has found itself in a situation where they have not yet achieved their required rate of return. However the required rate of return acts as an opportunity cost of earning same profit from different investment.

-Uncertainty and change

Shutout solution has been expecting uncertain threats from its competitor as the deodorant market was already very saturated. An event had been highlighted in the case when shutout was launching its deodorant line then many of its competitors were also introducing same product with certain functional similarities. However these detergents were although showing themselves as anti-bacterial products but they were using low quality chemicals for cleaning and nothing else. Hence the quality and claim of shutout has strengthen itself to face these challenges. The company has also been dealing with the threat of new entrants in Nano-silver market, as the formula for provide long lasting cleaning has been penetrated in the detergent market

-Success & Resource ownership

The company was established with limited resources to cater a niche market and has penetrated its products throughout Canada with more the 150. These outlets contains sports items that include hockey sticks and soccer, however the company is also selling its detergent and deodorant from the same platform. The company has named its brand as Lululemon, with the increase sales of detergent and the other anti-bacterial products have also increased company’s financial stability.

-Risk taking

The first and foremost risk involved in the business development phase for Robinson and Fischl was the shipment process. As the entire manufacturing process was taking place in South Asia that included mechanized operations related to finished goods and their packaging. However, when the products will be imported to Canada it would be highly possible that the company would face some issues related to the documentation of goods manufactured in Asia.

This will result in the occurrence of huge transportation of documentation reviewing with the cost of about $34000. If there had been some mistakes in the paperwork, then the whole consignment would be returned to Asia for rechecking of the documents and along with the correct paperwork the consignment would be resend to home country to launch the product. Hence the major risk was associated with the financial as well as the time duration consumed in the residing process.

-Innovation and creativity

Robinson and Fischl were so much keen to establish their own business that was based on an innovative thought, however, it was not easy for them to immediately develop a blue ocean strategy. One of their business related course that they had to develop a business plan for which they were required to perform a particular set of research. While researching they found out about Nano-silver that had been used to remove bacteria from water. Both the students were fond of sports, mainly golf and ice hockey, by combining Nano-silver particles with sports they came up with an idea of a detergent with Nano-silver technology. This was an innovative thought which would not only clean the sport shirts but would also remove the stinky smell from it till a maximum period of 30 days. The detergent was highly innovative as it would provide a cost reduction solution to the buyer.

-Knowledge and information

The shutout has taken information from internet to get the idea of innovating a detergent that will provide long lasting anti-bacterial control. However the idea of using Nano-silver technology in detergent was a blue ocean strategy. No one has identified that if something that was being used in medicine to eliminate bacteria then that thing can also be used in other areas in order to save human beings from the germs that are common in the environment.........................

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After working together on a business plan for the university, the two businesses have worked for three years to develop their enterprise: Lockout Solutions Inc. to launch the company was created in response to the question, familiar to most players: as you know, smelly equipment. While their familiarity with hockey equipment has helped them identify specific problems, subsequent studies revealed a much broader issue: the need for cleaning products, which were made of micro-fiber. Using the technology, which turned to micro-fiber odor issue, they believed they were five year window of opportunity to grow and profit from the business to imitate his or replaced. As consider their options, they realized they would have to choose to focus their resources on a single product line, rather than to continue to develop its current portfolio of detergent, body wash and spray. They also questioned the fact that they use the right channel - gyms and sporting goods stores - to reach their customers. The ability to perform massive institutional sales was also intriguing, although it will require a different sales strategy, pricing and distribution. They also considered how they might respond to an offer to sell the company in its current form. "Hide
by Edward Gamble, Peter Frost, Stewart Thornhill Source: Richard Ivey School of Business Foundation 14 pages. Publication Date: 05 Oct 2011. Prod. #: W11261-PDF-ENG