Esb Vignettes Case Analysis

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ESB Vignettes Questions 1. From the viewpoint of a wealthy and successful technology investor looking to invest in a new startup opportunity, list the two to three major criteria you would use to evaluate these business opportunities? Define each criterion and state how you might measure them—in other words, evaluate whether an opportunity fits this criterion well. a. Market size $/year. b. High/low barriers to entry number of patents and level of difficulty involved with providing similar services. c. Time to market we’d measure it simply by looking at how long it is expected to take before each option can make it to the market. This gives us an upfront understanding of how long we can expect to wait before making money. 2. As an investor, which one of these four businesses would you choose to invest in? Why? d. If we had to choose right now, we’d have to choose Apollo Health. This is because there will always be a demand for health care, and that demand is increasing as the population increases. In addition, the market has low barriers to entry, this option has low start-up costs, and has the shortest turn-around time for becoming profitable. 3. Now put yourself in the role of the entrepreneur rather than the investor. Assuming you are qualified to be a member of the founding team for all four new companies, which would you choose to join (assuming compensation, location, etc. were equivalent)? Why? e. We’d choose to join Apollo Health for the reasons stated in question 2, as well as the following: i. Revenues per year will grow as more Apollo clinics are established. ii. Efficiency sells. iii. Passionate about helping people. 4. What would you see to be the biggest risk (or two) for each company? f. Rational Footwear Seems like a very tough sell: iv.
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