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Avatech HW16

Avatech is a startup founded by Brink Markle to develop technology for proactively detecting avalanche risks. They have created a prototype snowpack sensor. Markle is considering four potential business models: 1) Focus on intellectual property and licensing technology. 2) Partner with equipment manufacturers. 3) Become a differentiated brand targeting early adopters. 4) Create a digital ski safety platform integrating multiple data sources. Markle has asked for an analysis of the strengths and weaknesses of each model and a recommendation for how Avatech should establish itself in the emerging snow safety industry.

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51 views2 pages

Avatech HW16

Avatech is a startup founded by Brink Markle to develop technology for proactively detecting avalanche risks. They have created a prototype snowpack sensor. Markle is considering four potential business models: 1) Focus on intellectual property and licensing technology. 2) Partner with equipment manufacturers. 3) Become a differentiated brand targeting early adopters. 4) Create a digital ski safety platform integrating multiple data sources. Markle has asked for an analysis of the strengths and weaknesses of each model and a recommendation for how Avatech should establish itself in the emerging snow safety industry.

Uploaded by

Kyle Judah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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GROUP MEMO – AVATECH1

You have just been hired by Brink Markle, the founder of Avatech. Inspired by
his enthusiasm for backcountry skiing, he founded a startup based on the idea of
proactively detecting avalanche risks for the safety of skiers. Markle and his co-
founders have developed a working prototype of a proprietary snowpack sensor.
From his own life-threatening experience as well as through talking to other
enthusiasts and professionals, Markle is convinced that he has identified an
important “pain point:” the current safety equipment was targeted at reacting to
situations when users are actually trapped by an avalanche, rather than
proactively avoiding one. As they were showcasing the prototype and pitching
their ideas to a group of investors, Markle and his team have realized that
different investors were seeing different potential outcomes for the business.

Reflecting on different feedbacks that he received, Markle has developed four


potential “models” for bringing Avatech to market:

• The Intellectual Property Model. Under this approach, Avatech would focus
on building a reputation and intellectual property portfolio for being the
leading innovator in snow safety. The goal would be to hire expert
researchers and engineers in this field and aim at building a solid patent
portfolio, which they would license out to other sporting equipment
manufacturers.

• The Collaboration Model. Under this approach, Avatech would focus on


building tight partnership with other established sporting equipment
manufacturers. This strategy will allow Avatech to take advantage of the
existing supplier and distribution channels and become a complement to the
incumbent companies’ existing product portfolio. This would require


1
This case assignment was developed by Scott Stern and Jane Wu solely for the purposes of
classroom discussion. It is not intended to illustrate either effective or ineffective handling of an
administrative situation, nor as a source of data. Some case details have been adapted to
facilitate the learning objectives of the case. It should not be quoted, reproduced, distributed, or
shared in hard copy, electronic or any other form without express permission from the authors.
Feedback is welcome to [email protected].
Avatech to hire additional experienced business development people to build
partnerships.

• The Leading Innovator Model. Under this approach, Avatech would focus
on positioning itself as a differentiated sporting equipment brand with strong
technological expertise. They would particularly aim at penetrating the early
adopter group. In order to strike out on their own, Avatech would need to
build its own value chain of suppliers and distributors.

• The Platform Model. In this model, Avatech would transform itself into a
digital ski safety platform that integrate multiple sources of safety data, from
Avatech users to forecasting services. This would require Avatech to hire
software developers and data scientists to build the platform and analytics.

Markle has asked you to consider the strengths and weaknesses of these four
alternatives.

Considering that the snow detecting equipment industry is still in its infancy,
which of these approaches (or a variant of your own design) would help a start-
up such as Avatech establish a customer value proposition and also position
Avatech to be able to succeed on an ongoing basis?

Provide a detailed action plan and the rationale for justifying your choice.

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