This literature review will endeavor through the use of the given case study and other scholastic articles will show the opportunities and challenges experienced by its founders and the strategies employed to introduce a new consumer product onto the market.
This case study examines the start-up of 1uptoys. 1uptoys was a Dutch start-up that wanted to break into the electronic toy market. The company was founded by Roland Mannak in early 2006. Mannak had been a guest for dinner in his friends Patrick Grasso and family in december 2005. Having witnessed one of Grasso’s kids receive a gift which was a fairly simple “air-drums” Mannak releised he could a better product which would produce far more complex sounds.
The case study looks at the challenges and barriers the company and its founders faced. The challenges range from getting funding and enticing investors to getting their product from prototype to a functional product ready for sale. In a market that is seasonal and very flippant, the founders go through a series of setbacks. Assad
Strategic Management Defined:
Strategic management is distinguished from day-to-day operational management by the complexity of influences on decisions, the organisation-wide implications and their long-term implications (lecture notes SMC)
1uptoys strategic position:
When 1uptoys was founded in 2006 the environment in which the company was entering was split into two main categories. One was a traditional toy sector, such as dolls and building sets, the other was the new area of video games. Mannak knew that the video game industry was an up and coming area to be entering into. According to the case study Mannak aim was to position the company between the electronic toy and video game market. This Mannak believed was where the gap in the market was and it was his intentions to fill the gap with 1uptoys products. It was noted in the case study that it was the end of 2005, at a time when the world was not yet familiar with Wii and Guitar Hero.
Reading the case study it doesn’t do any actual SWOT analyses. To look at the organization in a strategic capabilities it is important that SWOT is performed. This will help understand where 1uptoys are and how the organization is progressing.
1uptoys were a new company who were entering an area not yet developed by the big players.
The team within the organization had very little experience. Ronald Mannak was the brainchild of 1uptoys. Mannak main area of studies was architecture. Although he had developed a successful website which he sold, Mannak had only an interest in computers and computers games. Mannak was also hopeless at negotiating as Martin Luxen observed,
“I have never met anyone who could match Ronald as a networker.” Unfortunately his negotiation skills were less well developed. As his start-up coach recalled, “Ronald needed to improve there. He wasn’t that good when it came...