The Entrepreneurship Activities of Club Message - Case Study Example

INDIVIDUAL CASE STUDY Contents Contents 2 Executive summary 3 Problem (Issue) ment 3 Data analysis 3 Key Decision Criteria 4 Alternatives analysis 4 Recommendations 5 Action and Implementation Plan 6 Exhibits 7 References 11 Executive summary Club Message (CM) was founded by Jeroen Glabeek and Gilbert Gooijers who were entrepreneurs in the field of SMS service provided by the company. The entrepreneurial approach of the founder members and the strategies for expansion of the business in the international markets has been reviewed in this paper. The impacts on the financial performance of the company and the possible strategies for future growth adopted by the company have been discussed. Problem (Issue) statement The problem statement is, “Analyze the entrepreneurship activities and innovative strategies of CM and the effects on their business operations”. Data analysis The analysis of the case study on the ringtone and SMS-provider, Club Message (CM) reveals the entrepreneurship and innovation challenges faced by the founder and the co-founder at the initial stages of operation and the strategies adopted by them to expand their business in the international markets (Stokes and Wilson, 2010, p.65). Jeroen Glabeek and Gilbert Gooijers, the founder and the co-founder were classmates and shared same interest in academics during their college days with the activity of radio broadcasting as a commercial business. Glabeek and Gooijers considered the proposal of their customers to send ringtones and sms to the overseas European markets such as Spain and tying up with the telecom service providers in those countries. In the course of their step towards innovation and entrepreneurship, they also considered their failed venture in the past in Poland. Taking into account the prospects of the international markets, the company considered at the development of software in the mobile phones of the customers all over the world (Kumar, 2008, p.57). In order to attract customers, they started to make their customers aware of the wide reach of the sms service and the response of the people after reading their sms. The clients of CM were able to send the plan of their activity to their customers and the overwhelming response of the customers led to the increase in sms traffic over the years as shown in Exhibit 1. The increase in the sms traffic and the growth of business reflected in the financial statements of the company. From the time the company started in 2000, the company has moved from a net loss position in 2000 to a net profit position of €1233602 in 2009. The income statement of CM over the years has been given in Exhibit 2. Key Decision Criteria The decision criteria for success and sustainability of CM’s business are the analysis of the entrepreneurial and innovative measures in the business of sms service. The success and sustainability is decided by the impact of measures taken to meet the challenges in the competitive industry, the impact on the financial performance and the possible growth prospects in future. Alternatives analysis The business activities and the success implementation of sms services of CM over the years were due to the entrepreneurial leadership qualities of the founder members and their innovative steps taken to overcome the challenges due to the competition in the industry and the government regulations (Burns, 2010, p.75). Van Glabeek identified the major competitors in the Dutch telecom industry namely KPN, MBlox, UK based sms service providers, etc. The market trends indicated the implementation of sms chat service and ringtones by several players. CM launched premium sms service where they required the receiver to pay for the sms sent to them rather than the payment to be made by the receiver. The company also focussed on the development of software used in the mobile phones of the customers. In the process the company emerged from being only a sms service provider to a technology based firm. These were innovative steps of CM which provided the users with rich experience. In the course of sms trading, CM utilised the opportunity of price differences in interconnection fees charged by their competitors. The regulations of the government required the company to notify the subscribers of the charged rate and the customers also had the option to stop the services if felt necessary. The details of the competitors, services and the content providers have been presented in Exhibit 3. Despite the government regulations, CM has been able to increase the business revenues with the help of planned and innovative solutions offered to their customers through the workforce of the company over the years as shown in Exhibit 4. In their efforts for internationalization of the sms service business, CM launched new application with the technology software like the sms firewall, mail services, banking services, 24 hour support, etc. The innovative efforts of the entrepreneurs included launch of club DVD, etc. For future growth, CM has planned to expand its business in the markets of Eastern Europe, Latin America and other emerging countries. The future plans for growth have been developed by the founders in the areas of mobile payments, location based services, advanced sms trading, etc. Recommendations Based on the study of the case of CM, it could be recommended that the expansion of the sms service of CM in the international markets should be supported by the appraisal of market specific risk factors. The lessons from the failure of the Polish market should be taken into consideration while deciding on further expansion of CM’s business to overseas markets. CM should carry out research and development on the market demand for sms services, ringtone services, etc. and develop innovative strategies to penetrate the market and retain market shares. The government regulations should be strictly complied by CM in order to avoid fines and losses in the business (Hatten, 2011, p.81). With the expansion of sms services, CM should also develop its expertise in handling huge database of subscribers to whom the latest changes in tariffs should be informed. All these strategies are recommended for establishing sustainable business of CM. Action and Implementation Plan The plan of action for future growth of CM includes identification of the emerging markets in the Asian countries where the demand for sms services are on an increasingly high note. CM would undertake an analysis of the political interventions, government regulations, market demand, social acceptance, competitive scenario and the availability of finances in order to take investment decisions for expanding the business of sms service of the company. CM would carry out research and development on providing sms chat, ringtone services in order to attract the customers in the competitive environment. The company would link up with the local telecom service providers or set up joint ventures in order to penetrate the market and increase the market share of business in the future (Verstraete and Jouison-Laffitte, 2011, p.56). This would lead to efficient service delivery in the local with the help of local telecom providers. The implementation plan for CM would emphasize on increasing the strength of the service network in order to establish a brand image in the new markets. Exhibits Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 References Kumar, S. A. 2008. Small Business and Entrepreneurship. New Delhi: I. K. International Pvt Ltd. Stokes, D. and Wilson, N. 2010. Small Business Management and Entrepreneurship. Stamford: Cengage Learning. Burns, P. 2010. Entrepreneurship and Small Business: Start-up, Growth and Maturity. New York: Palgrave Macmillan. Hatten, T. S. 2011. Small Business Management: Entrepreneurship and Beyond. Stamford: Cengage Learning. Verstraete, T. and Jouison-Laffitte, E. 2011. A Business Model for Entrepreneurship. New York: Edward Elgar Publishing. Read More