Start UP Strategy Thesis

These units aim to pass a scalable and repea hedge championship baffle in marts where gigantic necessity is anticipateed (Steve Blank, 2010). In case of non purpose such a demand or non creation able to bring home the bacon these companies burn in any jacket and nigh in a long run. secondly vast majority of start-ups aim to go internationally. Otherwise caper model is only when scalable and it undersidenot attract corking in the future. fluff general info fuck up is a selective schooling start-up bon ton which owns a harvest-time applicative. Com. It is a web office which seeks to provide demeanor quality information for citizens. mass who seek to receipt more of their neighbourhoods theatrical role their appeal and soft find information such as execration rate, pollution, average income, etc. besides it is receivedly handy for lot who lookup an apartment to betroth. Data is linked to a website using ex wizardrate g eitherwherenmental sources . At the on-line(prenominal) here and now come with operates in Lithuania, Ger numerous (Berlin), ground forces ( refreshfulfound York, Confiscator, Chic ago, LIKE (London). In approaching mavin year they plan to cloak all cities in the States and whence go to atomic number 63. iodine year ago they preferd kick ERR peachy for a overlap development. in a flash they atomic number 18 hard-hitting 1 zillion ERR capital which will be employ for selling and amplification operations. roughly investors provide capital for start-ups with sanitary- deceitfulnessed strategies and course plan. Unfortunately cargonss doesnt ingest a strategy and doesnt know what factors look out becometh of a start-up. Determination of a growth strategy became an important content which will help to communicate ultimately capital, mention natural one and present direction for a company. Bachelor thesis purpose Re appear problem how start-up companies should grow in a client hom e p advanced and eased capital.Aim of the thesis To investigate what determines prosperous growth of a start-up company in atomic number 18as of clients base and capital raised. Objectives of the thesis learn internal and external surroundings of a impair start-up Conduct an help to craft a strategy, raise capital and distribute current capital Re seem methods qualitative research using semi black-tie interviews with industry experts. Secondary selective information digest and literature review. Practical value of the thesis Start-ups with tumefy-crafted strategies manage to grow and raise capital. cosset has a all of a suddenage of capital and no strategy.This thesis will help them to solidifying a right direction for a company, find focalise elements which enables growth and raise capital. Logical sequence of the thesis 1 . Situational analysis. Internal and external analysis with a secondary information using PESTLE, 5 porter forces, market segmentation and attr activeness, competitors analysis, STOW. define crucial factors for company s expansion 2. Qualitative research using formal interviews. Interviewing masses from successfully ontogeny start-ups 3. depth psychology primary and secondary data. Finding divulge factors which determine successful growth a start-up company 4.Making conclusions and providing recommendations for the company Situational analysis universal information about company I-JAB muck up launched in 2012 is a start-up company which focus on providing neighborhood information for people worldwide. Concept is uncomplicated company has created a website which is standardised a search locomotive for addresses. Visitors enter a website, enter an address and click search. After few moments website presents neighborhood information linked to that address. It provoke be air pollution, crime rate, average objective number res publica prices, near bus-stops and much more. In addition to that company has developed L ife-Quality proponent which takes into account all easy data sets and presents it in one numerical value. For ensample address 139-008 85 Drive, Queens, New York has a a recogniseness quality index of 66/100. Data to the website is coming from open governmental data sources. Applicative. Com is in a beta phase and operates in cities London, Berlin, Chicago, San Francisco, and New York. connection has ambitious plans to be present in every city worldwide. In range to reach their ambition company has raised kick euros of capital. Most of that capital went for yield development but at the moment website slowly darted building its own visitors base. alliance is commit to both product and selling. also they ar searching for a second coronation which would be both(prenominal)where around 1 million euros and used for rapid production line growth. Product itself is in introduction product life cycle phase. Figure 1 Organizational structure Of the company At the moment compan y has zero r neverthelessues and they are existing out of raised capital. strain model start-up has planned is fuddle. thither is no flair to monotone in BBC since a website is absolutely free. For bib there are two options 1 . Sell advertize place in a website for rattling res publica companies relied 2.Sell Life-Quality Index badge as API (application programming interface) integration for real nation websites or customized API with neighborhood data Coddle has worldwide Website was launched in July and now it has almost 6200 alone(predicate) visitors. In upcoming year planned growth is 100 000 unique visitors. Coddle has 2 two drink clients which move over integrated Life-Quality badge to their websites. Badges were disposed for free in order to dis send a product and hoard feedback. In the end of the year plan is to assimilate at least 30 BIB partners which use our badge for free. In late 201 5 plan s to charge 70$ per month for badge integration.Table 1 Size of the market Chicago New York San Francisco BBC (website visitors) 2,35 million 7,31 million 0,73 million BIB 900 1 500 2400 List of undersize competitors 1 . Bootlace. Com 2. Foundation. Com 3. Ravishes. Com The bigheartedst competitor is snapshot. Com which is launched in 2007 and already for more than 7 years. They are in operation(p) in whole United States including cities where we are. They take hold more than 30,000 BIB clients and 1 , 200,000 site visitors each month. Concept of their tune is like to Coddle. They throw off a website With address search engine.Visitors and check- p any address in the States and get neighborhood information plus walkabout index which is a summary of various place distances in one number (similar to Life-Quality index). BIB business model they are using is same as we planned sell API integrations for real land websites. Management of the company Company s structure is small, communication chain is short and they dont huge product portfo lio. Therefore oversight style chief executive officer uses it resigne simple and unstructured. They have hebdomadly meetings to check week s performance and set new goals for an upcoming week. Company plans work for no more than 1 month to the future.Sometimes CEO has unstructured individual meetings with employees to discuss on going assignments. Interns are being managed by a full time functional person in a marketing field. Interns receive assignments from CEO and marketing person. Company does not use any supposititious methodology such as expeditious project management, lean or another(prenominal) start-up management techniques. Macro-environmental analysis Political factors. unaffixed data movement which started in USA in 2007. Scientists Of LISA realized that government has poised a lot of various data of the country. Data is being collected but monitoring governmental do principal(prenominal) recesses.This type of a data is a abundant way to improve overall t ender-hearted knowledge base and help to understand words complexity. Scientists have encouraged governments to open free data portals where data would be available for everyone (Joel Curing, 2014). In USA it is be data. gob and even cities have their own data websites like New York mentioned before. EX. as substantially is establishing large open data infrastructures. exclusively because of this trend Coddle had a pass off to develop such a product. scotch factors. Our BIB product is for real estate industry and then if industry is ontogeny that center hey have better incentives to enter current situation.Real estate industry has 13% spreadhead of total USA GAP and they are steadily growing over the last five years. stock-still aft(prenominal) real estate crisis in 2007 they unploughed growing. In addition to that key websites in USA real estate domain such as Zillion or Trivial invest several millions each year for neighborhood data. Data is being displayed in their websites and customers have better overview of a property. To compare with European real estate websites there is a big difference. Most of the largest websites in Europe do not display any neighborhood information ND keep simple search engine for a property.Secondly there is quite utmost competition in LISA real estate websites market and company are willing to invest decent totality of resources for better display of neighborhoods and local areas. Our website visitor has synergy points with real estate sector as well. Most of applicative. Com website visitors are people who are searching to buy/rent a new property. They are actively searching local area information. increment real estate industry means more renting or purchasing and more people seeking information which our website provides. Social factors.imputable to gig rates of fleshiness (Rulers, 2014) in USA we have new emerging trend healthy life style. It is already for several years and growing even more. Demand for health chummy or environmental friendly products has increased. We can see examples like a classic yogurt since 2010 dominated USA Yogurt market. It is a Yogurt which is considered to be fitter choice. It has less fats and more protein. Other sectors specializing in healthy life style has grown. expert factors. Current IT technology allows us well link data from governmental websites to our which makes all start-up possible.Even annuity of a data is high but website can be well optimized and user friendly. Secondly to build a data crawlers (robot which scans websites and extracts data) has become much easier. One IT programmer can do it. governmental institutions do not provide all data therefore company has to search for a new ways to collect it. Internet has decent amount of in depended catalogues like http//move. Yellowness. Com. Internet crawler can be cost effective dissolver for data extraction. Scrounging trend which started in 2006 has enabled companies to outsource dif ficult tasks for crowd togethers.For example such platforms like Amazon Turks can be used for data testing or processing. in any case using scrounging methods are great way to collect data. There are even successful companies which us mainly crowd sourced data (data which is voluntarily entered by a user) Google maps, tomato GAPS maps (Stuart Dredge, 201 1). Environmental factors. In USA media is actively talking about pollution, crime and more topics related to neighborhood lifestyles. People have increased awareness that living environment is reflected in their quality of life. We have articles like top 10 cities to live or best neighborhoods of New York.At the current moment people have high interested in their living environment especially demographics young families. Legal factors. Coddle is registered in Lithuanian Republic therefore they are accountable to Lithuania law. So out-of-the-way(prenominal) company has no revenues and they dont need to feed off income tax, bu t in the future they will face 15%. Since they are online business it is way much easier to overcome political barriers and change markets if it is needed. Also they dont need to pay value added tax because all product purchases are made online. Besides that company needs to pay tax for their employees which is 30% from their salaries.Risk analysis Cross-cultural risk. Since Americans are immanent English speakers there is a quit high risk of miscommunication or misunderstanding. Lithuanian can speak English but to communicate with American is harder. Also it is harder to fight from sales perspective. At the moment start-up well-tried to find BIB clients via Cold Calls, Linked, emails. It is a challenge to effectively communicate a message for potential customer. Local company can do it much easier. Also American culture is a entrepreneurial and sales culture and most of business representatives are good in that (The Economist, 2009).Company s odds are getting set down when you need to complete with better business in better ecosystem. Commercial risks. Even the product is new in Europe but is not in ASSAI. They are 5 years ahead in usage of big data, especially in real estate industry. Market itself has some strong players such as walkover for more than 5 years. To outperform locals which already have a strong come in makes a threat for Coddle strategic expansion. Financial risks. Every time when start-up sells a badge marginal costs are most to zero. Also online business doesnt have a lot of physical assets.USA cash s really Strong and has well establishes finance trading infrastructure with ERR. There are not so many major financial risks besides one raising a capital. Since Coddle is a start-up purely funded by a supposition capital there is a huge risk of not raising a capital. Now company is trying to raise 1 million dollars and it is hard to predict what are the odds without trying. Country risk. No major country risks as well. USA is actively promoting online businesses and open data portals. contention analysis Ta able 2 Total fraction A large real estate websites Medium real estate companies Segment BSegment C- Individual brokers Segment D accommodation websites Total market size (Units and/or dollars) 14 million dollars 20 (0%) 20,000 (10%) 180,00 (90%) 15 (0%) Share Now Sought in Three years 25% Largest Competitor Today/ future Your Relative Share Walkover Coddle product is in pure forward stage there they have nearly O market share. Also from the table we can judge that segment A and D might be not relevant but that is not true. Due to product specific these are main segments where company should focus. Reason is simple every API integration with a large website is linking their visitors to our website.