Solectric: Market Entry Decisions under Uncertainty
(9 pages of text)
Case (Gen Exp)
Solectric was a small solar power venture located in Sydney, Australia. The founder was an academic entrepreneur who was planning to return to his academic career. A new business development manager had been hired to explore and enter markets with varying degrees of uncertainty and potential profitability. The capital was running out and an unfocused strategy was exacerbating negligible sales revenues. Together, they were faced with the decision of which market(s) to focus on, how to allocate available capital, and how to consider the implications regarding distribution of equity and control.
Beyond financial valuation, this case also illustrates several dilemmas that many entrepreneurs face, such as:
- Balancing the needs of an uncertain new venture versus maintaining a stable career.
- Maintaining ownership versus increasing the value of a decreasing share of ownership.
- Balancing the need for the business to generate profit with the desire for the venture to serve a greater social or environmental purpose.
Australia, Small, 2012
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