Subject category:
Marketing
Published by:
Ivey Publishing
Version: 2005-11-24
Length: 16 pages
Data source: Field research
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Abstract
Two entrepreneurs have created a not-for-profit on-line back office system that can be used at no charge by any of Canada''s 70,000 charities to reduce their operating costs. The cost of maintaining the system has been underwritten by major financial service firms. Just as the entrepreneurs are about to launch, a for-profit service announces a similar service that targets the same charities. The entrepreneurs are concerned about overlap, pre-emption and possible confusion in the market. They wonder if they should alter their planned strategy or perhaps should just abandon the project.
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Abstract
Two entrepreneurs have created a not-for-profit on-line back office system that can be used at no charge by any of Canada''s 70,000 charities to reduce their operating costs. The cost of maintaining the system has been underwritten by major financial service firms. Just as the entrepreneurs are about to launch, a for-profit service announces a similar service that targets the same charities. The entrepreneurs are concerned about overlap, pre-emption and possible confusion in the market. They wonder if they should alter their planned strategy or perhaps should just abandon the project.