Getaway

Ryan W. Buell; Amy  Klopfenstein

Case | HBS Case Collection | September 2020

Getaway

by Ryan W. Buell and Amy Klopfenstein

Abstract

Since its founding, Getaway’s service offering – tiny, modern cabins in the woods, located within a two-hour drive of major metropolitan areas – had been met with tremendous demand. Overworked and overconnected city dwellers reveled in the opportunity to take a break from their hectic lives, disconnecting in nature, and savoring meaningful moments with the people closest to them. What began with a fixed, nightly cabin rate of $99 a night had graduated over time to daily yield management, and a steady increase in prices to match rising demand. $159.. $179... $199.. With the onset of the global pandemic in March of 2020, the prospect of getting away to the woods, in rigorously-cleaned, socially-distanced cabins, became even more appealing to homebound consumers, and there was a step change in demand, and prices skyrocketed, crossing $369 in some markets. Should the company make as much money as quickly as possible to fund further growth, or does that risk that consumers will determine Getaway is too expensive and either never come, or never come more than once?

Keywords: Entrepreneurship; Service Operations; Management; Demand and Consumers; Marketing; Strategy; Accommodations Industry;

Language: English

Format: Print

32 pages

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Citation:

Buell, Ryan W., and Amy Klopfenstein. "Getaway." Harvard Business School Case 621-054, September 2020.

Zameer Kassam Fine Jewelry (ZKFJ) designs custom engagement rings that tell the story of a couple’s relationship. The case describes the company’s process for engaging clients, which has historically been a relatively offline, high-touch experience. Obliged by social-distancing guidelines with the advent of the COVID-19 pandemic in early 2020, Zameer Kassam and his team had been forced to take many facets of the business online. Although clients still seemed delighted by their rings, Kassam wondered what might be being lost for his clients and employees in this new virtual medium. On the other hand, perhaps there were aspects of the process that could be improved through online delivery? Such a transition could represent an opportunity to grow the business.

Case | HBS Case Collection | May 2020 (Revised September 2020)

Soofa: Displaying the Right Path?

Jeffrey J. Bussgang, Amy Klopfenstein and Amram Migdal

In November 2019, Sandra Richter, co-founder and CEO of Soofa, a network of advertising-supported digital bulletin boards, must decide between two different fundraising and expansion plans for her company. One plan entails raising $15 million in a Series A round and pursuing an aggressive expansion strategy, while the other represents a more modest $3 million raise to bring the company to operating profitability. Richter had developed the $15 million plan with an executive introduced to her by her venture capital board members with extensive fundraising and startup experience; however, after months of pitching to investors, the aggressive expansion plan had failed to produce a term sheet. Richter must decide whether the rapid expansion is the right course of action for the company as she begins to question whether her business could realistically meet the plan’s projections even if she could secure the financing to fund it. Meanwhile, Soofa’s capital was rapidly dwindling. Richter must raise another round of capital by early 2020, or will be forced to lay off the majority of her staff and close her operations. Should she continue pursuing the aggressive expansion plan, pivot to the more modest plan based on operating profitability, or attempt to pursue both plans simultaneously? And how should she navigate the growing tension on her board given the company’s struggles?

Keywords: Business Ventures; Business Model; Business Plan; Business Startups; Entrepreneurship; Decision Making; Decisions; Ethics; Geography; Geopolitical Units; Finance; Investment; Markets; Market Entry and Exit; Demand and Consumers; Network Effects; Media; Society; Urban Development; Sustainable Cities; Technology; Hardware; Technology Platform; Strategy; Business Strategy; Expansion; Relationships; Partners and Partnerships; Capital; Venture Capital; Advertising Industry; Technology Industry; Media and Broadcasting Industry; North and Central America; United States; Massachusetts; Cambridge;

Citation:

Bussgang, Jeffrey J., Amy Klopfenstein, and Amram Migdal. "Soofa: Displaying the Right Path?" Harvard Business School Case 820-098, May 2020. (Revised September 2020.) View Details

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