Fleetway: Where The Fun Never Stops Harvard Case Solution & Analysis

Fleetway: Where The Fun Never Stops Case Study Solution

Advantages:

• It has the potential to improve the margins of the profitability of the Fleet system in the future, as the company will be able to charge more for the services of the escape room.
• Gives consumers “endless fun”
• Divides the customer base of the company.
• Improves the competitive advantage of a competitive company in the industry.

Cons:

• The target market for Escape Rooms is for rich or affluent consumers, accounting for 14% of the total customer base.
• Requires start-up costs additional costs.
• Increases high costs.
• High probability of failure as it differs from other rides and games currently offered by the company.

Other 4: Go to Both:

One possible solution to this problem is that Fleetway should start both projects namely the installation of both “Go-Kart and Escape Room” to reduce the threat of competition and its status in the industry. The pros and cons of this alternative are discussed below:

Advantages:

• The company puts itself back on the market.
• The company will find a competitive edge in the market and will reduce the threat of competition.
• Divides and develops a customer base.
• Improves revenue generation, and provides better revenue by satisfying consumer needs.

Cons:

• Higher start-up costs and higher company costs.
• High probability of failure.

Recommendation

Based on the projected increase in the revenues in the different years from 2019 to 2020 I increased the percentage of revenue and expenses with a high scenario in 2019 and then in the year 2020 I used the low scenario and finally in last I used the half revenue scenario. It seemed the revenue is increased in the year 2020 with low revenue and expenses scenario. and based on the calculations I experienced that if the revenue is half then the revenue is also decreased but the net income is negative so it will be not feasible to analyze if the revenue if half. Further information is provided in the excel file.

(Further information is provided in excel)

Appendix

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