Steven B. Belkin Harvard Case Solution & Analysis

Case Analysis: Steven B Belkin

Introduction

Steven B belkin was a graduate of Cornell University and Harvard business school. Hew as a business minded person and belonged to a middle class family. We can estimate his business mind with the example that he started his business when he was at the age of 12 when his grandfather gave him some used letter openers.

Steven decided to raise a raffle with an entry ticket of 1$ and put the opener as the price, he did this business very well; he further sold light bulbs door to door in his school life. Since he belonged to a middle class family and his family was facing financial crunch, in order to solve this problem he worked hard and graduate as an engineer also done his MBA from Harvard business school. He also played the role of captain of his school’s basketball and tennis team.

Problem Statement

Steven started his own business as a consultant with his classmates in the second year of his MBA where he earn good salary and learned a lot of things such as he made strong corporate contacts, also he took a great working experience as a consultant. Later, he left the job at Innovative management because of the salary issues.

Moreover,he started working in another company, which belonged to an investor who gave funds to establish IM . The company was making losses, when Steven joined that company he used turnaround strategy and changed the course of the company and again left the company because of the ownership issues. Furthermore, he set up his own company, which provides vocational services as well as works as a travel agency.

Moreover,the study highlights the future aspects and industry’s present competition.

Business and marketing strategy

Business Goals

As far as the present goals are concerned, we can clearly see that the business is focusing towards the prime customers and doing every possible thing to retain and attract them. As we see that the business is facing the main problem of financing, the business was looking for equity however,it was unable to find it.On the other hand, the business found debt financing at a cheaper rate of interest, which is 2%. Looking at the current position we can say that the current objective of the business is to find potential investors in order to have significant equity cushion.

Also, the business is focusing towards cheap rates of fares to facilitate its customers and to win price edge over its rival show ever,there are not many rivals in the market as well.

Competitive position and strategy

The firm is competing in the market on low prices, which is the key here to provide this firm a competitive advantage over rivals.On the other hand the industry has a potential growth capability and not saturated with lot of rivals. As the industry is in its early stages, therefore it can be said that its age is less than 10 years.

Moreover,The Travel Group has a strong sales force which has been chosen from IM and IM was the early player in the industry. The sales force works for sales seeking all over the US to make sure that they meet more sales although the firm is using a very nice strategy to minimize its cost by saving air freights. They save this fare by making arrangements of dates between departures and arrivals; the plane which departs passengers to Hawaii takes passengers back to the US, this step gives a huge savings in cost.

If we conclude the strategy in terms of Strategic management, then we can say that in the Focused Low Cost strategy there is a small chunk targeted by the company and that it is working on prices.

If we talk about long term competitive advantage, which is also known as sustainable competitive advantage, then in his case we do not have such long term advantage since the company is new and also the steps, which are taken by the company, can be easily copied..................................

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