Question

CASE STUDY

Miss Yinnary is one of the many women who own their own businesses and her experience is not very different from others, who must contend with being a mother, a spouse and a family cheerleader in addition to owning and operating a business. She is the owner of the famous Y-Hotel. It was her first business, though she had some family background in this business. Her two sisters were also in the same line of business. But she borrowed some money, put in some of her savings and started her own venture. She was the first woman ever to enter into this business, most of her clients could not understand that a woman could be interested in the hospitality industry. To Step up her game in the hospitality Industry , Miss Yinari is seeking someone who understands innovative entrepreneurship to assist her.

During her rise to success and in management of her hotel business, she also needs to manage a family, stay teaching in university and dealing with community affairs.

In her mind, there is nothing more exhilarating than owning her own business, and for her, the fun is in facing the challenges of turning the hotel into a first ever hotel that provide customers an unforgettable experience with innovation

In the present time, more women are making this choice, pursuing entrepreneurship rather than staying as housewives or traditional careers. For the past few years, the number of women starting new ventures is three times as large as the number of men. There are several good reasons for this trend. Some women find that owning a business is the only way to combine a decent income with time for their children by having the flexibility to control their schedules. Others see themselves as unlikely corporate managers and recognizing the gender problem that exists for achieving success, they choose the entrepreneurial route. Still others see entrepreneurship as a way of controlling their lives, pursuing interests that would be impossible in a corporate job.

The dual roles of mother and entrepreneur often conflict, and husbands and wives

tend to develop separate career tracks that often cannot be reconciled. Women can

also find it lonely in a business world, especially if clients are predominantly men,

this was a problem for Yinari too.

Many women, however, have businesses that fit well with their interest and with

women customers. These include services in beauty care, nutrition, education,

entertainment etc. Nevertheless, being in business often exacts a double price for

women, yet for those with determination like Yinari, the rewards are always waiting.

Your Task as Business Consultant , Prepare a report regarding the following issues below :

F. Refer to Dave McClure’s pirate metrics, explain each and every point of the metrics of your innovation

G. Is there a possibility to make unrelated diversification under the same company for Miss Yinnary? Please Explain your thoughts

Answer 1

Ans.

Acquisition: Acquisition in this context implies drawing the attention of the potential buyer. This is generally done by creating a website so that traffic gets generated on the website. Then comes analysing the source from which this traffic is coming in. So once identified the traffic that comes from ads, social media or campaigns, it is imperative to focus on that traffic driving source and invest more time and energy on that. In hotel business acquisition is generally done with good marketing.

Activation: Activation process comes in to the picture once regular visits of potential customers increase. In activation intent is to get clients engaged. So a good approach would be to request visitors to enter their credit card details and also a free membership for a period of one month which is a standard approach across the industry. In hotel business, customer’s engagement can come up for example with good discounts, discounts for family visit, with drinks snacks free. Stay three days and pay for 2 days. Besides coming up with offers during festivals and vacations will also garner interests of visitors to lock the deal. This is what will encourage clients to actually do business and take up the offering. It is driven by benefits and excellent service.

Retention: Retention primarily focuses on clients who have already used the service and was satisfied as such effort is needed to retain those clients as regular inflow of business is expected from those clients. Retention of clients is done by giving out some benefits to existing clients. This phase signifies clients trust on your service and products. In hotel business hygiene, security, comfort and good food is what clients look for with a touch of showcasing clients as member of a larger family. There is some emotional connection that gets developed with clients that also results in ore businesses due to word of mouth of these loyal customers.

Referral: As discussed above once the loyalty is developed by excellent customer service and good will with clients, referral of the business is just a natural outcome. Besides review on online platforms about business also gets an edge as part of referral as good service review always encourages a first time user to opt for the service.

Revenue: As existing customer flocks in along with newly referred clients, spike is revenue also rises. This is a very ideal situation to be in for any businesses. So by assessing weekly and monthly sales one can assess the focus area of the business and the challenging areas. In this phase it is early growth that will help business to understand the areas and aspects which are helping them to grow, as such more investment can be done to garner more business which in turn will lead to more revenue.

Unrelated diversification will not be a good idea as it will disturb the focus areas of this AARRR principle. If you look at AARRR principle every aspects comes up with focus areas. So engaging in unrelated diversification would disturb the focus areas of every aspects of AARRR principle. Since Miss Yinnary intend to develop her business in to first of its kind providing unforgettable experience it is incumbent that diversification should fall in sync within the purview of hotel. Providing trending amenities such as gym, Jacuzzi, swimming pool, sauna massage parlour and multiple other facilities would be a very good diversification in line with business. This can be tapped by assessing the above AARRR principle, provided there is a necessary demand of clients for these amenities. Offering a departmental store to operate within the hotel will go against the ethos of hotel business. The store in this case may appear as utterly unrelated diversification. Hence unrelated diversification should be avoided to run an exemplary business.