 Sebastian Fixson and Paul Mulligan
Sebastian Fixson and Paul Mulligan explain why millennial generation students find this case so appealing.
Empowering customers
The underlying idea for The Grommet concept originated with CEO Jules Pieri, who as a designer felt that many of today’s products cheapen the experience of purchase and ownership. In other words, she felt that simple consumption as traditional capitalism made users unappreciative of the work that product makers put in their creations. Based on this insight, Jules (and her co-founder Joanne, Chief Discovery Officer) were trying to find a way to empower customers to shape commerce collectively through the sum of their individual purchases (hence, their term ‘citizens commerce’). The term ‘The Grommet’ is a reference to the high level of quality that well-made products exhibit.
Fascinating approach
Interestingly, we met the protagonist originally through Babson alumni. We teach innovation and operations courses at a business school that is famous for its focus on entrepreneurship, so on some level, the company was right up our alley. But beyond that essential fit, the company’s attempt to improve on capitalism as a whole is a fascinating approach.
Business model
While the business model that The Grommet has built reflects the underlying philosophy of its founders, several of its features are typical for any B2C (business-to-consumer) business in that it tries to find and select products that it thinks the customers want, and then tries to match the anticipated demand for these products with sufficient supply.
Positive student response
In the current environment in which the interest in entrepreneurship has risen sharply over the last decade, and in which the millennial generation in particular is looking for ways to make the world a better place, the case of The Grommet is a very interesting example that lies right at the intersection of these two trends. Our students respond to that very positively.
The Grommet's Jules, Joanne and Ray added: 'It has been a pleasure to see the excitement on the faces of the Babson students who have experienced the case. When we meet one of them they have great enthusiasm coupled with incisive questions.'
 Substantial inventory challenge
Growing a business that sells a large number of different products means dealing with a substantial inventory challenge. Especially during a growth phase, the demand for working capital rises significantly. But the Rakuten investment not only provided direct access to resources, it also suggests that in the long run a tie to established retail companies might be advantageous, perhaps even necessary.
About the authors
Sebastian Fixson is Associate Professor of Technology and Operations Management at Babson College, US.
e
sfixson@babson.edu
Paul Mulligan is Associate Professor of Technology and Operations at Management at Babson College, US.
e
mulligan@babson.edu |
Where?