BOBSLA
Developing a strategic business model to address key challenges and capitalize on opportunities for Bobsla E-Snowmobiles company in the competitive market, focusing initially on hotels as potential clients.
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Presentation Transcript
BOBSLA E-motion on Snow John Molson MBA International Case Competition Barna Consulting Firm Naomi Di Cocco Carlos Piola Estifer Baldera Fernando Sierra
AGENDA 1 Key Issues 2 Overview 3 Strategy 4 Action Plan 5 Financials 6 Risk Assessment
KEY ISSUE Bobsla E-Snowmobiles KEY ISSUE Absence of a business model for your company. Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
KEY ISSUE Bobsla E-Snowmobiles KEY ISSUE CHALLENGES Absence of a business model for your company. Limited capital Limited production capacity Seasonal use of your product Competition from combustion and other e- snowmobiles Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
KEY ISSUE Bobsla E-Snowmobiles KEY ISSUE CHALLENGES Absence of a business model for your company. Limited capital Limited production capacity Seasonal use of your product Competition from combustion and other e- snowmobiles GOAL To develop a strategic business model to grow the company. Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
KEY ISSUE Bobsla E-Snowmobiles KEY ISSUE CHALLENGES Absence of a business model for your company. Limited capital Limited production capacity Seasonal use of your product Competition from combustion and other e- snowmobiles GOAL RECOMMENDATION To develop a strategic business model to grow the Focus initially on Hotels that would use the Bobsla as an entertainment service to their clients. company. Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
OVERVIEW Key Issues Overview Strategy Action Plan Financials Risk Assessment
TENDENCIES ENVIRONMENTAL AND MOBILITY 23.1% -50% 40 million President Biden Road transport EY analyst are announce a new target accounts for almost estimating a number for the United States to one-quarter of of 40 million electric achieve a 50-52 percent Europe s total vehicles in Europe reduction from 2005 greenhouse gas (GHG) for 2030 from 3 levels in economy-wide emissions 1 million in 2021 3 net greenhouse gas pollution in 2030 2 Source 1: European Environment Agency, Transport Emission of Greenhouse Report, Nov 2021 Source 2: White House Statement from April 2021 Overview Key Issues Source 3: European Environment Agency, Transport Emission of Greenhouse Report, Nov 2021 Strategy Action Plan Financials Risk Assessment
KEY TAKEAWAY Mobility is transitioning from combustion to electric Key Issues Overview Strategy Action Plan Financials Risk Assessment
SNOWMOBILES MARKET OVERVIEW Largest markets Characteristics Average snowmobiler Market size Expensive 1.4 billion market in USA (51,000 p/y) Sophisticated 45 years 2020 projected to Canada (43,000 Heavy and Riding 1,111 miles be 1.8 billion in p/y) Dangerous p/y 2027. Russia Heavily polluting Have not evolved Spends 2-3k dollars Just 0.2% is (85% of global much from a year on electric. market) invention. snowmobile recreation. Source: Provided by the company Financials Key Issues Overview Strategy Action Plan Risk Assessment
TRADITIONAL VS ELECTRIC MARKET OVERVIEW Traditional E-Snowmobiles Environmentally friendly Speed Autonomy Price Source: Team Creation Source: Team Creation Risk Assessment Overview Strategy Action Plan Financials
E-SNOWMOBILES LANDSCAPE BOBSLA AND COMPETITORS Brand Price (USD) Ratio compared to traditional Range Characteristic I-cat-pro 30,000 3x 50 km Electric version of snowmobile Electric version of snowmobile, design for utility Mattro 38,000 3.8x 50 km Aurora Sled 35,000 3.5x 50km Electric version of snowmobile 10 Year deal between Polaris & Zero, first vehicle to be lunch in the end of 2021. Polaris & Zero TBA TBA TBA Taiga 15,000 1.5x 130km Cool, fast, powerful e-snowmobile. Lighter, revolutionize, safer, fun e- snowmobile. Bobsla TBD Less than 1.5x - Source: Information provided by the company Financials Key Issues Overview Strategy Action Plan Risk Assessment
E-SNOWMOBILES LANDSCAPE BOBSLA AND COMPETITORS Brand Price (USD) Ratio compared to traditional Range Characteristic I-cat-pro 30,000 3x 50 km Electric version of snowmobile Electric version of snowmobile, design for utility Mattro 38,000 3.8x 50 km Aurora Sled 35,000 3.5x 50km Electric version of snowmobile 10 Year deal between Polaris & Zero, first vehicle to be lunch in the end of 2021. Polaris & Zero TBA TBA TBA Taiga 15,000 1.5x 130km Cool, fast, powerful e-snowmobile. Lighter, revolutionize, safer, fun e- snowmobile. Bobsla TBD Less than 1.5x - Source: Information provided by the company Financials Key Issues Overview Strategy Action Plan Risk Assessment
KEY TAKEAWAY Your products are more competitive than most of the current available products, and you are differentiating by having a more fun, safe and fresher design at a good price. Key Issues Overview Strategy Action Plan Financials Risk Assessment
STRATEGY Key Issues Overview Strategy Action Plan Financials Risk Assessment
ALTERNATIVES WHAT BUSINESS MODEL SHOULD BOBSLA PURSUE? 1. 2. 3. 4. 5. 6. Focus on Focus on B2B Focus on B2B to Sell using Focus on B2C Focus on B2C B2B to sell for to sell for Hotel rent for Hotel distributors for Direct to for hotel logistics entertainment entertainment and retailers. Customer crowdfunding sales Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
CRITERIA WHAT BUSINESS MODEL SHOULD BOBSLA PURSUE? 1. 2. 3. 4. 5. Capital Sales Implementation Brand Marketing needs Growth time positioning expenses potential Key Issues Overview Strategy Action Plan Financials Risk Assessment
B2B SELL FOR HOTEL LOGISTICS PROS CONS 1 Hotels may use the snowmobile for functional purposes such as emergency personnel on ski resorts, transportation from parking lots to remote chalets, service the ski slopes (accident intervention, ski lift maintenance, etc.) and deliver from the restaurants and bars Source: Team Creation Risk Assessment Key Issues Overview Strategy Action Plan Financials
B2B SELL FOR HOTEL ENTERTAINMENT PROS CONS 2 Hotel entertainment provides a broad possibility of uses for the product, such as excursions to wander in the woods and racing in Grand Prix challenges Source: Team Creation Risk Assessment Key Issues Overview Strategy Action Plan Financials
B2B RENT FOR HOTEL ENTERTAINMENT PROS CONS 3 Hotel entertainment provides a broad possibility of uses for the product, such as wandering in the woods and racing in Grand Prix challenges selling 15-minute tickets for 20-25. Payback would take less than two seasons. Source: Team Creation Risk Assessment Key Issues Overview Strategy Action Plan Financials
B2B USE SNOWMOBILES DISTRIBUTORS AND RETAILERS PROS CONS 4 The use of Snowmobiles distributors and retailers would get your products to different markets, but requiere big investments and production capacity. Source: Team Creation Risk Assessment Key Issues Overview Strategy Action Plan Financials
B2C DIRECT TO CUSTOMER PROS CONS 5 Selling directly to customers will provide a possibility to expand our market base and create a higher demand and appeal for the product Source: Team Creation Risk Assessment Key Issues Overview Strategy Action Plan Financials
B2C CROWDFUNDING PROS CONS 6 Crowdfunding provides multiple streams of funding at a relatively fast pace, without the need to deliver the product immediately Source: Team Creation Risk Assessment Key Issues Overview Strategy Action Plan Financials
DECISION MATRIX WHAT BUSINESS MODEL SHOULD BOBSLA PURSUE? CRITERIA ALTERNATIVES Sales growth potential Brand positioning Marketing Expenses + Capital needs Time + + Sell for Hotel logistics + + + + Sell for Hotel Entertainment B2B + + Rent to Hotel + + Using Snowmobile distributors + Direct to Customer on webpage ? B2C + + ? Crowdfunding + Positive Negative = Unchanged ? Unknown Source: Team Creation
DECISION MATRIX WHAT BUSINESS MODEL SHOULD BOBSLA PURSUE? CRITERIA ALTERNATIVES Sales growth potential Brand positioning Marketing Expenses + Capital needs Time + + Sell for Hotel logistics + + + + Sell for Hotel Entertainment B2B + + Rent to Hotel + + Using Snowmobile distributors + Direct to Customer on webpage ? B2C + + ? Crowdfunding + Positive Negative = Unchanged ? Unknown Source: Team Creation
WHY THIS IS YOUR BEST OPTION B2B FOR HOTELS AND B2C CROWDFUNDING FASTER FUNDING Possibility to receive funds by the upcoming winter WORD OF MOUTH Customers trying snowmobile at hotels may wish to acquire them for personal use MARKET POTENTIAL Target the entertainment sector which is one with high growth potential PRODUCTION TIME Possibility to deliver products at a later date BRAND POSITIONING Enhance brand image of fun and sustainable DIVERSIFY REVENUE SOURCES Streams of income from both B2B and B2C Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
KEY TAKEAWAY A combination of B2B and B2C will result in the optimal streams of funding and positioning for the brand Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
ACTION PLAN Key Issues Overview Strategy Action Plan Financials Risk Assessment
I.C.E. Strategy I-ncentivize C-apitalize E-xecute Key Issues Overview Strategy Action Plan Financials Risk Assessment
Incentivize The best way to Grow in the Current Age is to be Known We Recommend Popular Resorts such as: Aspen Skiing Courchevel Vail Ski Deer Valley Lake Louis Sun Peaks Sunshine Village Sochi Providing your services for Experiences in Resorts and Hotels Provides you with a stream of revenue while positioning your Brand to be known worldwide. Your company currently has Two Needs: To Grow To Be Sustainable Each Bobsla should have QR codes for easy scanning as well as Garments. At the time with your limited capacity you we recomend you create a Special Founder Editions for the first batch of 100 numbered Bobslas for Consumers Key Issues Overview Strategy Action Plan Financials Risk Assessment
Capitalize Make your Strengths Known After Creating Hype for your products and orders are being dispatched we recommend the creation of a lifestyle Brand and inclusi n of support of consumer clubs into your business. By 2025 the company should begin to look for Offline providers if the Capacity is being met and market potential could be accelerated. Begin Delivering the Bobslas to Consumers in 2023 as well as starting to deliver a Direct B2C Model We Urge you to host events with your partners to provide a sense of community with your existing consumer base. Key Issues Overview Strategy Action Plan Financials Risk Assessment
Execute Create the possibilities for this to become a Reality We Urge you to be a Lean Data Driven Company: KPI KPI By this we recommend you use data to take decisions such as: Projected Sales Based on Pre Orders and Demand base desires Events your fanbase and potential fan Possible adjustments or improvements to vehicles Units Sold Per Market Service Tickets After Sales Services customer desire Social Media Posts & Engagement Cost Acquisition Costs Revenue per Customer Key Issues Overview Strategy Action Plan Financials Risk Assessment
IMPLEMENTATION Q4 2021 2021 Q1 2022 2022 Q2 2022 2022 Q3 2022 2022 Q4 2022 2022 Q1 2023 2023 Q2 2023 2023 Q3 2023 2023 Q4 2023 2023 Q1 2024 2024 Q2 2024 2024 Q3 Q3 2024+ Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2024+ Start Pre Orders and Start Pre Orders and Crowd Crowd- -funding funding Start -- Finish Locate and Negotiate Locate and Negotiate with Hotels/ Resorts with Hotels/ Resorts Start ------------------------------------------------------------------------------------------------------------- ------ Events & Clubs Events & Clubs Start ------------------------------------------------------------------------------------------------------ Start --------------------------------------------------------------------------- Finish Merchandise Sales Merchandise Sales Increase Production Increase Production Start ------------------------------------------------------------------------------------- Pre Pre- -Order Delivery Order Delivery Start ------------- Finish Start B2C Market------------------- After Sales Service After Sales Service Start-----------------------------------------------Finish Seek Offline Seek Offline Partnership Partnership Start Source: Team Creation Key Issues Key Issues Overview Overview Strategy Strategy Action Plan Action Plan Financials Financials Risk Assessment Risk Assessment
FINANCIALS Key Issues Overview Strategy Action Plan Financials Risk Assessment
ASSUMPTIONS 01 02 Critical Mass Will be reached at around 125 units production Cost of Capital 12% Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
INVESTMENT AND SOURCE OF FUNDING Funds needed: 500m USD Funded by: Crowdfunding Angel investors Figures in USD thousands Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
FUNDING Sell 5% of company for 3m USD Figures in USD thousands Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
PROJECTIONS Revenue growth coming from: Transition to alliance in 2024 Figures in USD thousands Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
SUMMARY By 2032 Revenue Global market share Operating income $62m USD 3.7% $22m USD Source: Team Creation Key Issues Overview Strategy Action Plan Financials Risk Assessment
KEY TAKEAWAY By leveraging crowdfunding you'll be able to launch your brand without initial external funding Key Issues Overview Strategy Action Plan Financials Risk Assessment
RISK ASSESSMENT Key Issues Overview Strategy Action Plan Financials Risk Assessment
RISK ASSESSMENT Risk Mitigation Plan # Risk description RISK CONSEQUENCE Lo w Medium High Technology has been patented for 20 years Competitors copy our product 1 High 2 5 Global warming affects snow periods Contribute to environmental programs 2 RISK LIKELIHOOD Medium 3 4 6 The product is used for other purposes than those sold for Strong brand positioning and marketing 3 Invest more heavily on R&D 4 Safety issues 1 Lo w Have 3 backup potential subcontractors Loss of subcontractors 5 Lo w Risk Level: Medium High Pandemic is prolonged Market for individual use 6 Source: Team Creation Risk Assessment Key Issues Overview Strategy Action Plan Financials
KEY ISSUES What business model should Bobsla pursue? Source: Team Creation
KEY ISSUES STRATEGY RECOMMENDATIONS What business Use B2B and B2C model should to target both hotel Bobsla pursue? entertainment and crowdfunding to diversify streams of funding Source: Team Creation
KEY ISSUES STRATEGY RECOMMENDATIONS What business Use B2B and B2C I - ncentivize model should to target both hotel C - apitalize Bobsla pursue? entertainment and E - xecute crowdfunding to diversify streams of funding Source: Team Creation
KEY ISSUES STRATEGY RECOMMENDATIONS RESULTS What business Use B2B and B2C I - ncentivize Revenue of model should to target both hotel C - apitalize USD$62M and Bobsla pursue? entertainment and E - xecute operating income crowdfunding to of USD$22M, for a diversify streams of total market share funding of 3.7% Source: Team Creation
THANK YOU FOR YOUR TIME We are open to any comments & questions John Molson MBA International Case Competition Barna Consulting Firm Naomi Di Cocco Carlos Piola Estifer Baldera Fernando Sierra
