ENT 350 Shark Tank Analysis Rough Draft PDF

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Had to watch a shark tank episode from the current season and the write a paper about it. ...

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1 11/29/16

ENT 350 Shark Tank Analysis I watched episode nine of season eight of Shark Tank. I picked a company called PupBox run by Ben and Ariel, a husband and wife team. They made the proposition that the value of PupBox is making life with a little one easier by customizing each dog’s box to the its development stage and physical characteristics; PupBox also sends the owner a training guide to know what is going on with their pet. PupBox accomplishes this mission by sending a subscription box with five to seven items to the consumer once a month. The box contains products from toys and treats to grooming accessories and a training guide.that lets the consumer know what they should be doing for their dog. PupBox was created to make the lives of puppy-owners easier because when a dog is transitioning, it might be difficult for the owners to go to a retail store and pick out what they need for their dog. PupBox removes this difficulty and does it for you monthly. The Pupbox is meant to guide consumers through every step of their dog’s life. They want the consumers to subscribe when they first get a puppy and continue subscribing until it is time to get a new dog. Through their value proposition, PupBox communicates to its consumers the reasons they should choose this company rather than another one. Their value proposition says that they will customize the products directly to the subscriber’s dog and will send tips to help it during the growth and development phases. This value proposition will even draw in stakeholders because through this value proposition they see that PupBox really does care for its consumers and their pets, and they take the time to customize the products to each box.

2 The PupBox company is classified as a traditional retailer business model. They are classified as a traditional because they purchase their products from a manufacturer and then mark up the price. PupBox’s mission is to provide consumers with products for their dogs to help relieve the stress of having to go to a big box retail store to pick out and buy what their dog needs. PupBox targets consumers who have puppies. They do this because they want to have the consumer sign up when they get their puppy and thereby create a loyalty base with these customers. PupBox wants to continue to keep these customers through the entire dog’s life. The revenue streams for PupBox seem to come solely from subscription fees. The consumer pays monthly between $29 to $39 for a box filled with five to seven products for their dog. PupBox is on track this year to make around eight hundred thousand dollars and estimates to make 2.5 million next year. The cost structure of PupBox is the products they buy to put into the boxes, the shipping, and the shipping supplies. PupBox has created a basis of differentiation by not only providing products for these dogs, but by also providing a training guide that lets the consumer know what behaviors and phases their dog will typically have during a certain time period and how the owners can best provide for them. They are walking the consumer through each developmental stage of the dog. Also, PupBox customizes their boxes by the developmental stage and physical characteristics of the dog. PupBox uses a value driven business model. They are considered value driven because they are providing high quality products to consumers, and they also customize each box. For PupBox to get the products they need, like toys and dog treats, they would need to have partnered with a supplier or multiple suppliers. PupBox uses a direct channel to provide these boxes to their customers by letting them order online.

3 The PupBox company can be analyzed according to topics covered in class. PupBox decided to make a deal with Robert for $250,000 for ten percent of their company. Next, Ben and Ariel need to get an agreement created in writing that is signed by all three of them. Many disagreements arise because there is not an agreement in writing. So, this is something that would be highly valuable to all three of the parties involved. Also, PupBox created a great network by partnering with Robert because he can help grow their company in ways Ben and Ariel wouldn’t have had the capability to do on their own. Initially, PupBox would have been classified as a general partnership between Ben and Ariel. They both have equal say in how the company is run. Ben and Ariel would have made the partnership agreement. This partnership agreement states the responsibilities of each of the parties and what will happen if one of them dies or decides to leave the company. PupBox has a sales forecast this year that projects they will hit eight hundred thousand dollars in sales, and that their sales next year will be about 2.5 million. This was helpful information so the Sharks could determine how much the company is truly worth. PupBox used market segmentation to find out their target market, which is consumers who have puppies. They have created a unique positioning strategy by providing consumers with information on what they need to do for their dog during the development stage they are in. This unique positioning strategy differentiates themselves from their competitors. PupBox also uses promotion in their strategy to attract consumers. The longer their subscription continues, the better discount they will receive. So, if a consumer signs up for just one month, they will have to pay $39, but, if they sign up for a year’s subscription. it will be $29 a month. So, the consumer will receive a bigger discount for a longer subscription.

4 The major way that PupBox makes consumers aware of their subscription service is by advertising through social media. They also encourage consumers to spread their own pictures on social media and tag PupBox in them, so the subscribers will help spread the word about the company. For legal aspects, PupBox should have filed and obtained a trademark for their name and logo. A trademark protects these aspects of their business so that the competition cannot steal them and use them to their advantage. PupBox is still in the growth phase of the business lifecycle. Ben stated that they are growing at a rate of ten percent per month. PupBox will need to keep an eye on this to make sure that they are not growing too fast. PupBox did a wonderful elevator pitch to be able to get four out of five sharks interested in their company. They planned out every little detail down to bringing a puppy for each of the sharks. Ben and Ariel had obviously practiced what they were going to say because they easily transitioned from one to the other when talking. Their elevator pitch gave a short but informative description of the company. The PupBox company would also need to pay attention to their financials. This would include knowing exactly what their budgets are during a given period. This would include what the forecast projections show that their capital needs are, as well as income, and expenses. They would also need to pay attention to the income statement, as well as the balance sheet. The balance sheet says what the company’s liabilities, assets, and owner’s equity are at a given point. Also, the company would need to pay attention to the statement of cash flows, so that they would know how much cash they have a given period of time. The income statement shows the revenues and expenses during a period of time. It also shows whether they are making profit or losing profit. PupBox would want to compare the firm’s financial results with other competitors in the industry and with what the industry norm is. This way, PupBox will be able to tell how they are performing compared to other companies....