Springy Fields: An Entrepreneur’s Dilemma  Harvard Case Solution & Analysis

Springy Fields: An Entrepreneur's Dilemma Case Solution

Threats:

In fresh markets like India and China, where scale is valued over profit; the home market sales promotion would not operate.

Customers are shifting to a mobile context, which could stifle growth if Tom Springy does not have a powerful mobile strategy in place.

Question No:4

 

Expansion Plan Impact

S, W, T Dome Franchise Retail Coaching
   Strength As tom has a loyal customer base he will be able to generate sales  

 

none

Will be able to provide the same environment in a new market Will add more value to the services
   Strength Will need nit more promotions and advertisement  

 

None

 

 

 

 

None

 

 

The team will be able to learn from professionals and will become more loyal

weakness This indoor facility will not reduce the risk of replication. The financial statement will sustain because no need to invest in a new venture  

 

Will be able to sustain the financial position

 

 

None

 

weakness  

None

 

There will be no space for competitors.  

None

 

 

None

 

Threat The threat of new entrance will not reduce in other seasons  

 

None

 

 

None

 

 

 

None

 

Threat Will be able to gain market share in winter as well Because the business model is easy and can easily be copied by another player in the market so franchise will reduce this risk  

 

 

 

 

None

 

 

 

 

 

None

 

 Question No: 5

Cost leadership strategy

The strategy of Tom’s recreation league is cost leadership, at a low cost, they are providing services and facilities that can satisfy the customers. He can work on this strategy because of low expenses. Overall value chain focuses on low costs, such as: low fixed costs, using low-cost websites-based marketing, a small number of staff (only one assistant in summer), and rented facilities.

Question No:6

Balanced Scorecard and strategy map

Question No:7

Financial Implications of strategy:

The net income from franking over 20 years is $1,061,200, and the net income from the dome option is $1877.1, which is much lower than the earnings from the first option. Tom has to take the debt of $675,000 if he chooses the dome option.As we know he is avoiding taking debt for investment which is amore risky option for him. And the payback period is 6.08. years which is not a good factor.

Question No:8

Advantages and drawbacks of expansion options:

As tom is a risk-averse person and searching for the expansion option with low risk, so Trenching is less risky than the dome option,but in Trenching; the quality might get compromised, which would have a negative impact on the reputation of Tom’s sports league. However, this would not be the case in dome strategy. If Tom chooses the Trenching option; he will be able to continue his desired lifestyle the “European lifestyle”, but in the dome option; he will not be able to do so.The concerns such as desired lifestyle and community engagement future support the Trenching option.............................

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