The aim of this paper is to analyze a case study of a start-up, The Right Stuff, which sells a hydration product helping athletes and first responders to avoid dehydration. The paper will explain the companyâs business model, provide a business model canvass, and analyze its entrepreneurial process with the help of the Timmons model.
Business Model
The companyâs target markets include team athletes, individual athletes, and non-athlete markets such as military, first responders, and long-distance airline passengers. The Right Stuffâs business model seeks to increase the product range, thereby serving to different groups of customers in every segment of the market. Therefore, the start-upâs founder, David Belaga, has developed the following flavors for his product: orange tangerine, citrus, berry, and zero flavor. The business is value-driven and focused on the premium value proposition.
Business Model Canvas
Table 1 shows the business model canvas (BMC) for The Right Stuff.
Based on the analysis of the companyâs business model, it can be argued that the hydration product producer will be able to make a profit in an extremely short period of time. The support from high-profile athletes across a wide range of sports will help The Right Stuff to quickly gain popularity in both professional and mainstream athlete communities, thereby rapidly scaling the business. The same can be said about the company’s attempts to reach new customer markets. Dehydration is a real problem that is associated with numerous side effects. By using innovative technologies and the latest scientific advances, the company will be able to eliminate unfavorable symptoms of dehydration for athletes around the world.
The Timmons Model
The Opportunity Factor
The Right Stuff proactively seeks opportunities for scaling its business. There are three target markets that can provide it with secure revenue streams. The company has acquired sufficient funds to address its expense challenges and achieve its milestones within a 3-to 5-year period. However, the business can explore the opportunity of producing recovery drinks for boosting athletesâ muscle functions.
The Team Factor
A board of advisors has a solid background in science, sports, and business. Other team members have been engaged in marketing activities for almost two decades and have extensive knowledge of market trends.
The Resources Factor
The main strength of The Right Stuff is the patent for the unique product that has been licensed by a National Aeronautics and Space Administration. The founderâs experience in consumer products also sets the company apart from its rivals.
Final Assessment
All three components perfectly align with each other. However, The Right Stuff has the potential to expand its revenue sources by producing recovery drinks for athletes.
Conclusion
The companyâs entrepreneurial process is well-balanced and aligned with the industry. The Right Stuffâs business model is sustainable and has a significant chance of achieving rapid growth within a reasonable timeframe.
Reference List
Business model canvas explained 2011. Strategyzer, New York. Web.
Imke, S 2016, Applying the business model canvas: a practical guide for small businesses, CreateSpace Independent, New York.
Terjesen, S 2014, âThe Right Stuff: a NASA technology-based new venture and the search for markets on Earthâ, Entrepreneurship Theory and Practice, vol. 40, no. 3, pp. 713-726.