Question

Carrie Ann thinks she has identified a hot opportunity. She has watched the demand for tattoos and body art increase over the last several years. Carrie Ann believes that this trend is now leveling off and that in the near future many people who have gotten tattoos will want them removed. In anticipation, she has developed a nonsurgical approach to tattoo removal that consists of a cream applied to the tattoo. The area is then covered with gauze, and the cream must be reapplied every day for two weeks. At the end of two weeks, the tattoo is gone. A tube of Carrie Ann's cream will retail for about $50.

Carrie Ann's business could become a fast-growth player as described in this chapter. What would she need to do to become a fast-growth company?

Answer 1

Carrie Ann has watched the increase in the demand for tattoos and body art over the recent years. CA believes that this trend is leveling off and soon the demand for its removal would increase. Expecting the change, she has developed a cream for the removal of tattoo. The tube of cream would cost $50.

 

INFERENCE:

 

Steps to be taken to make the business a fast growing company:

 

The business of CA can be turned into a fast growing company by introducing the product online. Online sales of the product would provide a lot of exposure to CA A huge number of customers across the globe can have access to CA's products.

 

Moreover, it does not need any physical setup like retail shop and inventory to carry over sales activity. It is a cost-effective and high revenue generating method of sale. It allows the business to grow at a much faster rate.

 

CA must also have an exit plan to cash out an investment that was made earlier for the business. This also increases the value of the firm through mergers and acquisitions. It is necessary because all the businesses undergo a life cycle where it experiences a decline stage. 

At this stage, the window of opportunity is closed: therefore, to explore further opportunities for growth, the business is sold to business giants or other investors.