Jupiter Report Case Study Analysis
How JupiterBouncecan take the opportunity
JupitarBounce can take the opportunity by making the supplying chain efficiently. It should depends to the suppliers whose dedication should be towards the firm and that will not have the high bargaining power because of less collaboration with other companies.
3.5 Threat of Substitute Products
There is high threat of substitutes for the JupitarBounce because of the substitutes companies. The service quality of these firms is standard and higher that creates the threat of substitute. The substitutes create the profitability upward because every company brings innovation and best quality service which expands the industry. Moreover, customer goes towards that company which has the innovative and contemporary service.
How JupiterBouncecan take the opportunity
JupitarBounce should focus its services not just emphasize on products on in other words it should be service oriented. It should also assess the customers’ demand and provide according to it. Moreover, the differentiation and innovation can make the company opportunist and achieve the competitive advantage in the industry.
PEST Analysis
PEST Analysis is the main phenomena to evaluate your business according to the external environment. The external environment is the bottom line of any business which must be assessed properly. It comprises of Political, Economic, Social and Technological factors.
Political
Political factors for JupiterBounce are quite favorable as they are growing their business in USA. The political stability of USA is positive regarding business. There is a government support for businesses and moderate taxes. The USA is the largest country where the laws are transparent and effective. The democratic setup is the main factor which helps the capitalism and aids the people to start their business and have the proper regulations over them. The Neiman Marcus can grow its business and have the positive political factors.
Economic
Economically, USA is the largest country in the world which has the stable economy and the per capita income is high there. The GDP is in trillions every year. People are having high standard of living and the inflation rate is moderate there. As the Dollar prices are high and the country has a good manufacturing and service industry. The economic factor for the JupiterBounce is positive as it deals in the entertainment and arts industry and the businesses are becoming well-developed and expanding because of economic stability.
Social
Socially, JupiterBounce has influencing factors because of the luxury goods. The main focus of them is women apparels. There is majority of immigrants and cosmopolitan society there. Everyone has a different choice which leads to the firm to assess the demand of people. There are some pessimist factors for the JupiterBounce which can become hindrance for the growth and expansion. The other issue could generate when the liberal mind-set of people cannot give the hype to the new businesses and they prefer what they are used to. (Wiley Encyclopedia of Management, 2015)
Technological
Innovation and the use of new technology is the competitive advantage for the USA and the rapid growth of businesses are happening because of technological factors. JupiterBounce has the access of the technology and it can easily perform its operations on the technological grounds. The use of machineries and the equipment can be easily available for it. Moreover, they can manufacture the goods with the proper machineries and will not face the inadequacy in the technological aspect. We can predict the firm is having the support of technological ground in services by the use of technological gadgets can easily be applied.
The PEST analysis of JupiterBounce identifies that the firm can have the positive factors according to its macroeconomic and the firm can have the growth and expansion in the upcoming years.
Alternatives & Recommendations
In order to obtain finance from its Emergency Bridge Loan, of approximately $25000, the company went to SBDC for financial and capital needs. The bank, after assessing the company’s situation approved the loan. The profitability of the company has been impacted by the pandemic, and to keep its operations smooth, Jupiter needs more financing, which could be generated through the following alternatives
Crowdfunding
Jupiter can generate funds through crowdfunding, whereby small funds are generated by large group of people in an online platform. The funds can be generated through reward (whereby investor provides funds in hope of getting returns as rewards) based crowdfunding or through the equity based crowdfunding (whereby the provision of funds by the investors require the equity ownership).
The crowdfunding has its own benefits as well as disadvantages. For instance, through the crowdfunding the company has a chance to exceed campaign goals, without providing any repayments or fulfilling the credit requirements. However, the crowdfunding is a very lengthy process and may not be suitable for few businesses.
Peer-to-Peer Lending
Another possible way through Jupiter could generate funds of $25000 is the peer-to-peer lending, whereby the funds provided by the investors are matched with the investors through online platforms. In peer-to-peer lending, the loan is quite different from the equity, as the interest payments over the loan are used to provide returns to the investors.
The P2P lending has modest level of returns and risks. The lending model is suitable with most of the businesses. Moreover, unlike the crowdfunding, the P2P lending is a fast funding process. In addition, through P2P lending the Jupiter Company can obtain loans at competitive interest rates, as compared to other loans. However, in P2P lending the company has to provide the returns back to investors through interest payments and the principal payments and sometimes it may require high revenues or credit fees.
Bank Line of Credit
Another alternative for the company is to apply for a bank’s line of credit in order to support its ongoing operations. The line of credit provides the facility whereby the company can obtain finance as per the desired amount and the company would not be paying higher interest rates for large amounts of funds.
Recommendation
It is recommended that the company should either opt for peer-to-peer lending or the line of credit option. The main reason is that the effects of the pandemic are not permanent and with the vaccine provision, the Covid-19 will be recovered and it is expected the economies will recover soon. So, granting the equity ownership and return in forms of the crowdfunding are not the viable options.......................
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