KATIE'S CUSTOM ENGRAVING LOGOS - Case Study Example

Executive Summary 23 year old Katie Clarke with a degree in new media needs to decide between having a business venture and pursuing graduated education. She really wants to start the business though. Customization of products to the customers differentiated Bullet from its competitors and increased customers’ loyalty. Creating the logos is difficult. Stock images of the engraving hardware do not provide any competitive advantage, so Katie decides to establish her own business of making the custom image files.

Katie needs to make a substantial investment to do all sales and production digitally. The e-commerce business expands the consumer market beyond local. Katie is anticipating a huge opportunity of making money and is quite enthusiastic about establishing this business. Katie determines all costs associated with the establishment of the business. This business is very localized and independent with hardly any competitors or the dominant industry players. Katie considers her financial sources for investment in the business and seeks further knowledge.

Her uncle tells her that at 876 images a year, Katie would have a break-even point, though selling 1000 images a year would lend her a substantial profit and payment. Although she is capable of producing over 1000 images a year, yet she is unsure about the size of the market for the custom images as well as the market share she needs to break even. Katie thinks upon the way to determine her venture’s market potential as well as of making a realistic estimation of the market share that results from that potential.