Case Analysis: the Price of Admissions

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Josh Tavarez Entrepenurial Management Case Study Analysis: The Price of Admissions Section I – Summary of Facts Luke Skurman finished high school and looked to apply to local colleges Skurman found thatt the only two ways of finding information on colleges were visiting first-hand or talking to students who attended. Skurman and friend Joey Rahimi used their business plan along with two other class mates to launch College Prowler College Prowler based itself as a “by students, for students” approach of first-hand accounts of academics, dorms, and campus-life The team receieved assistance from a former processor along with two angel investors investing $5,000 each in exchange for 2% of the company. The National Association for College Admission Counseling trade show in Salt Lake City helped College Prowler gain attenion from major media like CNN and Publishers Weekly Glen Meakem from Meakem Becker Venture Capital in Pennsylvania invested $500,000 into the company in August 2004 Ingram agreed to distribute College Prowler's guides and helped the company establish a national presence in book stores like Barnes & Nobles. Skurman realized he had failed to set-up an effective business model where the company could generate a solid profit from their current model of distribution The company tried to increase revenue by selling ads on the inside of book covers and on the company's website. Wachovia signed on as an advertiser with a six-figure deal that included book and web banner ads along with sponsorship privilleges. Began offering online subscription based services at a rate of $39.95 per year starting in March, 2007. Made minimal profit in 2007 and came under the realization that other competitive services like Unigo were being offered free of charge Skurman

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