Solome Tibebu: Evaluating Possible Business Models

Case Solution

Laura C. Dunham
North American Case Research Association (NACRA) ()

A young college-age entrepreneur wants to start a business with a line of interactive video games that she created to help teenagers with severe anxiety. She considers three possible business models, each targeting a different customer segment with different value propositions, while remaining true to her vision of supporting teens with anxiety disorders. After doing some basic research, she is not sure which business model to follow and what her next steps should be. The case allows students to examine the process by which entrepreneurs develop and evaluate business models, while highlighting a critical issue for many start-ups, namely the need to focus. As students establish their recommendations for next steps, they understand the importance of the kind of disciplined research that entrepreneurs must undertake to test the hypotheses that are embedded in their fledgling business models.

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