Entropy Innovations: A Bumpy Ride Ahead?
(7 pages of text)
Mumbai-based Entropy Innovations Private Limited (Entropy) was incorporated by three friends who hoped to revolutionize the motorcycle and scooter washing industry in India through their technological solution, an automatic bike washing machine. Starting with one city in 2014, Entropy expanded gradually and aimed to become a ₹500 million company by 2020. But as 2019 drew to an end, the company was not gaining the traction the founders had expected. Although many options were available, the choices and their implications were unclear. What was the appropriate business model for the growth phase of their firm? How should they stabilize the company in the Indian market? Should they focus on the two-wheeler washing industry, or should they diversify into the four-wheeler all-terrain vehicle (ATV) market?
This case is useful for class discussion in graduate-level courses on strategic management or entrepreneurship. After working through the case and assignment questions, students will be able to do the following:
- Understand and analyze the competitive dynamics of an emerging industry.
- Assess the business model of a new venture in an emerging industry.
- Analyze industry- and firm-level challenges and expansion options for a new venture in an emerging industry.
India, Small, 2019
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