Sendwine Analysis

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John Kuechly September 13, 2014 Sendwine Case Questions 1. A. Based on the company’s past performance, I would invest in a $30 million “B” round. B. I would base my decision on a couple different criteria. The historical performance of the company would be my first criteria. Another criteria would be the different types of needs of the different customers. I would also use the business model and how it can grow from its current base as the final criteria. C. In terms of historical data, I would use this data to make future predictions since it is the most reliable set of data. This data is the most reliable predictor since it takes into account the seasons of performance and how people perform during each season. In terms of needs, the types of needs most satisfied by the Sendwine Company are unstated and delight needs. In terms of unstated needs, a customer expected and received excellent service from Sendwine in that they were able to effectively send the gift to their loved ones. With delight needs, the Sendwine Company was able to provide the extra service of wrapping the gift and sending it to the customer’s intended recipient. With the business model, the company targeted key segments of the population that would eventually continue to exponentially grow and provide a service to them that they ultimately would continue to use. On top of this the company operated in a manner that saved on a multitude of costs to include, but not limited to shipping, distribution and the amount and type of gifts that customers could buy. 2. I would not seek to diversify into additional gift categories in time for the 1999 holiday season. I would not do this because I would want to build a solid base before I expanded further. I would want to keep the faith of the initial customers, and try to gain more customers in the same segment I am currently in. I would want to

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