Harvard Case - Becca Brothers: Da Click
"Becca Brothers: Da Click" Harvard business case study is written by Sherwood C. Frey. It deals with the challenges in the field of Negotiation. The case study is 2 page(s) long and it was first published on : Jul 23, 2004
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At Fern Fort University, we recommend that Becca Brothers carefully consider the potential benefits and risks of entering the online advertising market through 'Da Click.' This decision should be based on a thorough analysis of the market, the competitive landscape, and Becca Brothers' existing resources and capabilities. A strategic approach that balances growth opportunities with risk mitigation is crucial for Becca Brothers' long-term success.
2. Background
Becca Brothers is a family-owned and operated business specializing in outdoor advertising. They have a strong track record of success in the traditional advertising market, but are facing increasing competition from digital advertising platforms. 'Da Click,' a new online advertising platform developed by Becca Brothers, seeks to leverage their existing network of billboards and other outdoor advertising assets to attract advertisers seeking a broader reach.
The main protagonists are:
- Becca Brothers: The family-owned business facing the challenge of adapting to the digital advertising landscape.
- David Becker: The CEO of Becca Brothers, who is hesitant to invest in 'Da Click' due to the perceived risks of entering the online advertising market.
- Sarah Becker: David's daughter, who is passionate about 'Da Click' and believes it has the potential to revolutionize the advertising industry.
3. Analysis of the Case Study
Strategic Analysis:
- Porter's Five Forces: The online advertising market is highly competitive, with numerous players vying for market share. This is evidenced by the presence of established giants like Google and Facebook, as well as emerging startups. The threat of new entrants is high due to the low barriers to entry in the digital space. The bargaining power of buyers is also high, as advertisers have numerous options for placing their ads. However, Becca Brothers' existing network of outdoor advertising assets could provide a unique value proposition, potentially mitigating the impact of these competitive forces.
- SWOT Analysis:
- Strengths: Strong brand recognition, established network of outdoor advertising assets, deep understanding of the traditional advertising market.
- Weaknesses: Lack of experience in online advertising, potential for high development costs, limited technical expertise.
- Opportunities: Growing demand for digital advertising, potential to leverage existing assets for online advertising, opportunity to reach new customer segments.
- Threats: Intense competition from established players, rapid technological advancements, potential for regulatory changes in the online advertising industry.
Financial Analysis:
- Investment Costs: Becca Brothers needs to consider the significant initial investment required for developing and launching 'Da Click.' This includes costs associated with platform development, marketing, and staffing.
- Return on Investment (ROI): The potential ROI of 'Da Click' depends on factors such as the platform's ability to attract advertisers, the pricing strategy, and the operating costs.
- Financial Risk: Becca Brothers needs to carefully assess the financial risks associated with entering the online advertising market. This includes the possibility of low adoption rates, high operating costs, and competition from established players.
Marketing Analysis:
- Target Market: Becca Brothers needs to identify its target market for 'Da Click.' This could include advertisers seeking a broader reach, businesses looking to target specific demographics, and local businesses seeking cost-effective advertising solutions.
- Marketing Strategy: A comprehensive marketing strategy is essential for attracting advertisers to 'Da Click.' This should include a mix of online and offline marketing tactics, such as social media marketing, search engine optimization (SEO), and partnerships with local businesses.
- Pricing Strategy: Becca Brothers needs to develop a competitive pricing strategy for 'Da Click.' This should consider the value proposition offered, the pricing strategies of competitors, and the cost of delivering the service.
Operational Analysis:
- Platform Development: Becca Brothers needs to ensure that 'Da Click' is developed with a user-friendly interface and robust functionality. This includes features such as targeted advertising, real-time analytics, and secure payment processing.
- Customer Service: Providing excellent customer service is essential for retaining advertisers. This includes prompt responses to inquiries, effective troubleshooting, and ongoing support.
- Data Security: Becca Brothers needs to prioritize data security and privacy for both advertisers and users. This includes implementing appropriate security measures and complying with relevant regulations.
4. Recommendations
- Conduct a thorough market research and feasibility study: Becca Brothers should conduct a comprehensive market analysis to assess the demand for online advertising services, identify potential competitors, and evaluate the feasibility of 'Da Click.' This analysis should include a detailed assessment of the target market, the competitive landscape, and the potential financial returns.
- Develop a detailed business plan: A well-defined business plan is crucial for guiding the development and launch of 'Da Click.' This plan should outline the platform's features, marketing strategy, pricing strategy, financial projections, and key milestones.
- Invest in technology and expertise: Becca Brothers needs to invest in the necessary technology and expertise to develop and operate 'Da Click.' This includes hiring skilled engineers, designers, and marketing professionals with experience in online advertising.
- Build strategic partnerships: Becca Brothers should explore strategic partnerships with other businesses in the advertising industry. This could include partnerships with media agencies, technology companies, and other advertising platforms. These partnerships can provide access to new markets, resources, and expertise.
- Focus on customer experience: Becca Brothers should prioritize customer experience by providing a user-friendly platform, excellent customer service, and robust data security measures. This will be critical for attracting and retaining advertisers.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Becca Brothers has a strong reputation for providing high-quality outdoor advertising services. Expanding into online advertising aligns with their mission to deliver effective advertising solutions to businesses.
- External customers and internal clients: The recommendations address the needs of both external customers (advertisers) and internal clients (Becca Brothers employees). By developing a user-friendly platform, providing excellent customer service, and investing in employee training, Becca Brothers can ensure that both groups are satisfied.
- Competitors: The recommendations acknowledge the intense competition in the online advertising market. By focusing on developing a unique value proposition, leveraging their existing assets, and building strategic partnerships, Becca Brothers can differentiate themselves from competitors.
- Attractiveness: The recommendations consider the financial attractiveness of 'Da Click.' By conducting a thorough feasibility study, developing a detailed business plan, and investing in technology and expertise, Becca Brothers can increase the likelihood of a positive return on investment.
6. Conclusion
Becca Brothers has a significant opportunity to capitalize on the growing demand for online advertising. 'Da Click' has the potential to be a successful venture, but it requires careful planning, execution, and ongoing adaptation to the dynamic digital landscape. By following the recommendations outlined above, Becca Brothers can increase their chances of success in this competitive market.
7. Discussion
Alternatives:
- Focus solely on traditional advertising: Becca Brothers could choose to focus solely on their existing business model of outdoor advertising. However, this would likely lead to declining market share as the digital advertising market continues to grow.
- Partner with an existing online advertising platform: Becca Brothers could choose to partner with an existing online advertising platform instead of developing their own. This would require less investment but would also limit their control over the platform and the data generated.
Risks:
- High development costs: The development and launch of 'Da Click' could require significant upfront investment, which could strain Becca Brothers' financial resources.
- Low adoption rates: There is a risk that 'Da Click' may not attract enough advertisers to achieve profitability.
- Competition from established players: Becca Brothers will face intense competition from established online advertising platforms like Google and Facebook.
Key Assumptions:
- The online advertising market will continue to grow.
- Becca Brothers can successfully develop and launch 'Da Click.'
- Becca Brothers can attract enough advertisers to achieve profitability.
8. Next Steps
- Conduct market research and feasibility study: (Within 3 months)
- Develop a detailed business plan: (Within 6 months)
- Secure funding for development and launch: (Within 9 months)
- Develop and launch 'Da Click': (Within 12 months)
- Monitor performance and make adjustments as needed: (Ongoing)
By taking these steps, Becca Brothers can navigate the challenges and opportunities of the online advertising market and position themselves for long-term success.
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Case Description
The Becca Brothers series of cases is part of the "Da Click" collection of short cases written for use with high-school students. Da Click is a successful local rap band that has attracted the attention of the national record company Becca Brothers. The situation is a multi-issue negotiation over the group's first recording contract. There are issues that are congruent, distributive, and integrative, thus presenting the opportunity for creating and claiming value.
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