Shark Tank

Shark Tank

The six business investors in Season 7 Episode 8 of The Shark Tank have different paths to success. They help the aspiring entrepreneurs to meet their goals and to make profits like them. The six sharks are aware of what they need in a potential partner. For instance, Barbara Corcoran wants to mentor a hardworking and visionary entrepreneur tyo foster creativity in the industry.

            The AfreSheet is a revolutionary start-up that introduces fitted sheet to the American market. The bed sheets are waterproof, silky and the top layer can be peeled off to reveal a new clean sheet. The product is ideal for the elderly population, young children, and busy college graduates that do not have time for laundry. Maxwell Cohen (the founder of AfreSheet Inc.) saw a business opportunity when he was in college. He learned that his peers hardly changed their bedsheets. As a creative entrepreneur, he solved the unhygienic dilemma by introducing the cottony peel sheets. Not only does this revolutionary product save more than 50 gallons of water but also time.

The Problem

College students often find it difficult to maintain sanitation. It is a tedious task to keep up with the learning program, to attend parties, and to be clean at the same time. Even worse, most learners lack adequate financial resources to pay for regular laundry services. Therefore, they require a lasting solution to quickly fix their problem. While the solution may not be permanent, it can be adequate because the peeling up of layers can last a semester. The education process is stressful and tiring to a learner. At the end of the day, each student wants to retire to a warm silky bed. However, most manufacturers of bed covers and bed sheets do not factor this into consideration.

Target Market

AfreSheet product targets young population, especially college students. The entrepreneur understands that the vastness and marginalization of this market segment by its competitors. Given that AfreSheet is a new solution, it attracts the attention of teenagers learners and young adults. Within a year, the market will expand significantly because it meets the needs of the targeted population. Other types of customers that are willing to pay for the product include the elderly, the conservationists, and the blue collar job workers living in temporary shelters. Maxwell Cohen’s intention is to significantly cut time, energy, and effort that would otherwise be spent arranging the bed and laundry.

Market Size

According to the US DoE, the number of college students surpassed 20 million in the year 2015 (Sherry et al., 2015). Therefore, Maxwell Cohen’s investment in AfreSheet is a viable option given the presence of a large ready market. It is true that a section of this population embraces hygienic bedroom measures like regular laundry. However, the vast majority face a significant challenge regarding cleanliness. It is notable that the issue is far reaching, specifically for the juniors and senior. In the case of freshmen, they are yet to adjust to the learning environment and to take personal responsibilities for their wellbeing. On the other hand, the senior students work hard to graduate with good grades. Most of them spend nights and days in the library and sleep for a few hours. As they strain for better results, their hygiene and personal health may deteriorate.

Business Model

Given that AfreSheet is a start-up corporation, it has limited financial resources. Therefore, the leadership has significantly cut the operational cost through the utilization of online platform to market their products. Maxwell Cohen and his team understand the impact that the social media has on the business. For instance, advertising the products through social media reaches out to a wider audience of its market segment. Notably, most college students own a social media account, and the firm can post adverts on its profile for free. In the long- run, AfreSheet saves a remarkable amount of money thus increasing the annual revenues. However, the organization must diversify its products to minimize vulnerability in case of market shocks. The revenue should stream in from different sources rather than from a ground-breaking product that may fail to deliver.

Greatest Risks

Business organizations should not encourage poor hygienic practices. The choice of AfreSheet’s management to release a product that encourages laziness and untidiness is a significant risk. In fact, the idea borders unethical business practices and whether or not the society embraces it is subject to debate. The entrepreneur is taking a bold step by investing in a negative business opportunity. In fact, sanitary professionals and activists can initiate lawsuits targeting the start-up on grounds that it violates health protocols. Therefore, Maxwell Cohen should be prepared to answer the potential allegations or else the organization may not survive its first year on a national stage.  If the buyers embrace the product, it will be a matter of time before counterfeit products from the competitors can flood the market. In the end, the market saturates and the firm’s revenue fall sharply. Yet, not all will be lost as the company can avoid this risk by patenting AfreSheet.

Competitive Landscape

New ideas and incorporation of technology define the modern business landscape. Each start-up has to invest in the latest technology to market the new products (Hitt et al., 2012). An organizational website, for example, is a critical business element, especially when introducing a new product to the market. In addition, it is imperative for an organization to invest a decent amount of money on research and development. The strategy studies the consumer behavior and the latest trends. Competitive firms consider the customer’s tastes and preferences during the production process. While AfreSheet targets the students, there is a lack of clarity whether profitability or provision of market needs drive Maxwell Cohen’s ambitions. People could solve such matters by defining a comprehensible mission and vision for the company. Then, the leadership ought to outline the step-by-step measures on how to meet the corporate long-term goals.

Competitive Advantage

The customers choose this solution because it is not only waterproof but also silky. Other than AfreSheet, there is no other business entity in the US that produces and sells a bed sheet with seven peel-away layers to keep the bed neat and clean. Chances are that Maxwell Cohen exaggerates the benefits of his product but its uniqueness attracts the college students and other customers. Besides, the entrepreneur has mastered the technology and how to employ social media for product promotions. Most his competitors are yet to exploit all avenues for their products to be recognized by a larger market segment.

Founder’s Ability to Execute

            The founder is self-driven, disciplined, and passionate. He exhibits leadership traits that are crucial in solidifying the start-up’s position in the industry. It is notable that his new product is a result of his experience rather than the need to generate revenue. Maxwell Cohen is a young entrepreneur with a resourceful mindset should he get an adequate support from investors and stakeholders.

Recommendation

As a shark, I would invest in Maxwell Cohen’s vision because he has proved his worth as a business entrepreneur. Clearly, his sheets solve chronic hygiene challenge that the young college students face. Besides, his idea marries with my plan to create sustainable low-cost products using green technology.

References

Sherry, M., Thomas, P., & Chui, W. H. (2015). International Students: A Vulnerable Student Population. Higher Education, 60(1), 33-46.

Hitt, M. A., Keats, B. W., & DeMarie, S. M. (2012). Navigating in the New Competitive Landscape: Building Strategic Flexibility and Competitive Advantage in the 21st Century. The Academy of Management Executive, 12(4), 22-42.