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stickK's Dual Model Strategy

The document analyzes a case study about the company stickK and its business model options. It identifies the key issues as choosing between focusing solely on stickK's current B2C model or expanding into B2B as well. Two alternatives are generated: maintaining the B2C model or continuing B2C while expanding to also offer B2B services. After evaluating the alternatives based on criteria like costs, risks, and profits, the preferred alternative is identified as continuing B2C while pursuing B2B to diversify revenue streams and lower overall risk. The actions proposed include serving both individual and business customers, making improvements to retain B2C customers, hiring more staff for B2B, and using various marketing strategies

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SIMRAN
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126 views2 pages

stickK's Dual Model Strategy

The document analyzes a case study about the company stickK and its business model options. It identifies the key issues as choosing between focusing solely on stickK's current B2C model or expanding into B2B as well. Two alternatives are generated: maintaining the B2C model or continuing B2C while expanding to also offer B2B services. After evaluating the alternatives based on criteria like costs, risks, and profits, the preferred alternative is identified as continuing B2C while pursuing B2B to diversify revenue streams and lower overall risk. The actions proposed include serving both individual and business customers, making improvements to retain B2C customers, hiring more staff for B2B, and using various marketing strategies

Uploaded by

SIMRAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: Simran

Roll no: MBA21131

Case Preparation chart


Name of the case : Making stickK Stick: The Business of Behavioral Economics

Issues faced by the decision maker


1. Which business model will be more suitable for stickk to satisfy the social goal of the
organisation and be the most effective source for the company's future growth?
2. Is it profitable to grow up the team to cater to B2B since the current team can
effectively manage the B2C model ?
3. Does stickK have adequate resources to maintain and develop its current B2C model
if it chooses for expansion to B2B with more resources?
Alternative generation
1. stickK can maintain its B2C model and achieve its objective of assisting users in
fulfilling their commitment contracts through organic expansion.
2. stickK can continue to use its present team for the B2C model while also expanding
its capabilities to the B2B model.
Evaluation of alternatives
1. stickK can continue to develop its B2C model.
 This strategy has shown organic and rapid growth, and as of 2012, they had wagered
$17 million and increased their user base to 100,000 registered users with 70,000
contracts
 It only needs a little labour, and the existing team is efficient with this model
 The stakes will allow them to make money, and there isn't much direct competition
 It is a quick procedure with no customization and no extra financial costs
 The same design can be further enhanced to serve consumers by providing premium
services in terms of additional features

2. stickK can continue with the B2C model and also raise funding to further expand to
B2B Model
 By sensibly allocating resources in accordance with the user base, they can also
continue using the B2C model as they already have a customer base for it
 B2B will be labour intensive and will be requiring more developers to cater to
customers with customization
 it will be a lengthy procedure as compared to the B2C business

1
 Although the B2B model would require a larger initial investment but operating
profit would be higher
 It provides a consistent source of income with ongoing profits.

Decision Criteria
Cost of development
Riskiness of the model
Reliability
Maximum Profits
Preferred alternative
To increase profitability, stickK should continue to develop its B2C business while also
pursuing B2B prospects. They should broaden their consumer base and diversify their
revenue streams by serving both individuals  and companies. This will also lower the risk of
choosing individual strategies and give the company a reliable source of income.
Actions and implementations

 StickK can serve both individual customers and businesses on demand.


 Since stickK already has a customer base for their B2C offerings, they can keep
making improvements and making adjustments to the same to better serve their
clients
 To serve B2B business, they can engage more developers and accounting managers
 They can offer semi customisation and charge for more features and modifications
 They can use advertising and organic marketing strategies to promote the company
 B2B models will offer reliable revenue sources in addition to revenue from individual
clients

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