Subject category:
Entrepreneurship
Published by:
Harvard Business Publishing
Version: 21 March 1997
Length: 21 pages
Data source: Field research
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https://casecent.re/p/45135
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Abstract
Bob Reiss, a seasoned entrepreneur, "accidentally" started Valdawn in 1988 and in six years built the company into a $7 million marketer of "fun and fashion" watches. Valdawn, a "virtual" company, has very few employees or fixed assets and enjoys attractive profit margins, and, Bob believes, bright prospects for growth. Nevertheless, Bob is wary of making the investment such growth would require and wonders whether he should scale back the business or sell his interest.; To discuss: 1) the challenges of sustaining a business in a consumer niche market, 2) the sustainability of virtual companies, 3) harvesting options, and 4) ethical issues faced by small businesses.
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Abstract
Bob Reiss, a seasoned entrepreneur, "accidentally" started Valdawn in 1988 and in six years built the company into a $7 million marketer of "fun and fashion" watches. Valdawn, a "virtual" company, has very few employees or fixed assets and enjoys attractive profit margins, and, Bob believes, bright prospects for growth. Nevertheless, Bob is wary of making the investment such growth would require and wonders whether he should scale back the business or sell his interest.; To discuss: 1) the challenges of sustaining a business in a consumer niche market, 2) the sustainability of virtual companies, 3) harvesting options, and 4) ethical issues faced by small businesses.