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October 05, 2011
Retail & Consumer Goods
After working together on a university business plan, two entrepreneurs had worked for three years to develop their venture: Shutout Solutions Inc. Their startup venture was established in response to an issue familiar to most hockey players: notoriously smelly equipment. While their familiarity with hockey equipment helped them identify a specific problem, subsequent research had revealed a much broader issue: the need to clean products that were made of micro-fibre. Utilizing a technology that addressed the micro-fibre odour issue, they believed they had a five year opportunity window to develop and profit from the business before it was imitated or superseded. As the considered their options, they realized that they may have to choose to focus their resources on a single product line rather than continue to develop their current portfolio of a detergent, a body wash and a spray. They also questioned whether they were using the right channel – gyms and sporting goods stores – to reach their customers. The opportunity to pursue bulk institutional sales was also intriguing, though it would require a different sales, pricing and distribution strategy. And they also considered how they might respond to an offer to sell the company in its current form.
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