Entrepreneur Dilemma: Alliance or Solo? Case Study

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Problem Statement

The main problem facing Brent currently is to decide on whether to form an alliance with Imagine or embark on his initial goal of developing a workbook for marketing plan. Forming an alliance with Imagine would help Brent increase his client base. Nonetheless, it would mean that he would spend most of his time offering consultancy services, thus having no time to work on the workbook.

He currently fears that failure to work on the workbook would give another person a chance to work on the same, thus benefiting at his expense. Based on the current situation, he can only pursue one option. He can only work as a consultant or do away with forming an alliance with Imagine and work on developing the workbook.

SWOT analysis

Strengths
  • High number of small business in need of marketing workbook
  • High experience in marketing strategies
  • Flexible and willing to take risks
  • His image as a successful entrepreneur
  • An established network of business contact
Weaknesses
  • Lack of financial resources to develop the workbook
  • Long duration required to develop the workbook
  • Lack of experience in graphic designing
Opportunities
  • High number of small businesses emerging in the US and Canada
  • Collaborating with local community
  • Increase in the number of people that use marketing publication to do their purchasing implies that the demand for the workbook would be high
Threats
  • Threat from big marketing companies
  • Chances of another person working on the same project before Brent capitalizes in it

Situation

Currently, Brent is contemplating on forming an alliance with Imagine or going it alone. For the duration he has worked with Imagine, his client base has increased leading to an increase in his revenue. On the other hand, he has not had time to work on his workbook as he spends all the time offering consultancy services. By working with Imagine, Brent is guaranteed of getting many referrals from Imagine. Besides, his operational costs would go down, as they would share a building with Imagine.

However, he feels that the alliance would deny him an opportunity to develop the workbook, which he feels would have high returns upon reaching the American market as well as the Canadian market. Magazines, books, and newspapers accounted for significant sales in Canada in 1994. Hence, Brent believes that his workbook would get a positive reception in the market.

Brent has already come up with strategies for selling his workbook, which will ensure that he benefits from the sales. Additionally, the selling price of the workbook relative to its production cost shows that he would make a substantial profit from each copy of the workbook. This aspect leaves him in a dilemma on whether to work on the workbook or form an alliance.

Various alternatives

Brent has two alternatives: the first alternative is forming an alliance with Imagine and delaying his workbook by one year. This move would give him a chance to accumulate money to use in developing his workbook. He would have to dedicate all his energy to offering consultancy services.

The second option is to go it alone. Brent can decide to continue working independently. He can continue offering consultancy services and developing his workbook, which would require him to allocate some of his time to offering consultancy services and the rest to working on his workbook.

Evaluated

Both alternatives would have merits and demerits on Brent’s ambition. If Brent decides to go it alone and stop working with Imagine, he would have to grapple with raising money required to publish his book.

This element implies that he would have to spend some time working as a consultant and some time working on the workbook. Ultimately, he would have to take time to compile his workbook. Nevertheless, he would have the freedom to adjust his schedule according to his will. In other words, working independently would give him the freedom to plan his program (Knight, 2007).

On the other hand, if he decides to form an alliance with Imagine, he would have an opportunity to raise the required amount of money without many challenges. The alliance would help him to increase his client base. Consequently, his revenue would go high, thus giving him an opportunity to raise the required amount of money faster than when working independently.

In spite of raising the required amount of money without difficulties, Brent would have to put aside his workbook and focus on offering consultancy services. Forming an alliance would limit his freedom. He would have to cooperate with Imagine in offering his services. This requirement would leave him without an alternative but to delay his workbook by one year, which might be detrimental if another person learns about the idea and works on the workbook ahead of him.

Recommendation

Based on the situation, I would recommend Brent to stop forming an alliance and first work independently. This move would give him a chance to work on his workbook and complete it on schedule.

Reason for the recommendation

The workbook looks promising. Hence, it would be imperative for Brent to work on the workbook under all costs. Working independently is the only option that would give him time to compile the workbook. Forming the alliance would increase his workload, thus leaving him with no time to compile the workbook in time.

Reference

Knight, R. M. (2007). Technological innovation in Canada: A comparison between independent entrepreneurs and corporate innovators. Journal of Business Venturing, 4(4), 281-288.

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IvyPanda. (2018, December 11). Entrepreneur Dilemma: Alliance or Solo? https://ivypanda.com/essays/case-study-entrepreneur-management/

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IvyPanda. 2018. "Entrepreneur Dilemma: Alliance or Solo?" December 11, 2018. https://ivypanda.com/essays/case-study-entrepreneur-management/.

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IvyPanda. "Entrepreneur Dilemma: Alliance or Solo?" December 11, 2018. https://ivypanda.com/essays/case-study-entrepreneur-management/.

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