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CASE STUDY

Surbhi Sharma, Amandeep Kaur, Avinash, Akshay Sharma

Department of Business, Northern College

Global Business Entrepreneurship and Technology: B313S

Professor: Sara Ashwood

September 20, 2023

Q1.)

Ans.) Omer’s idea for a lamp store specializing in LED lamps seems like a good one for a few

reasons:

i. Passion and Education: Omar has been creating LED lights since he was in high school,

and he does it with true enthusiasm. He also has knowledge and abilities useful for

running such a business thanks to his qualification in business management.

ii. Working independently: Despite the lack of a formal company strategy, market research,

or financial preparation, Omar has managed to meet his expenditures, attract clients, and

profit from his lamp-making hobby. This shows his business dedication as well as the

possible demand for his items.

iii. Unique Thinking: Omar's concentration on LED lamps, particularly the newer,

revolutionary LED smart bulbs, distinguishes his idea from generic lamp merchants.

From this, it looks like his idea is unique and good. His objective is to distinguish his

store by utilizing his creativity and design talents.

Q2.)

Ans.) Omar's guess about how much people will spend on his LED lamps might not be right.

When starting a new business, it’s important to know how much customers will spend on that

exact product. In Omar's case, he tried to figure this out by using a government survey that

looked at how much households in BC spend on regular lamps and lampshades every year. But

that data is too general and doesn't really tell us how much people would spend on their special

LED lamps.
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The main issue is the data he is using from the government survey may be old, especially in

fields where technology and customer tastes change quickly, like LED lighting. The LED bulb

market might have changed dramatically after the data was obtained, making the

estimations inaccurate.

Another reason might be that there's a chance that the information Omar obtained

included expenditures on other lighting-related or home-decor items. Because of the lack of

uniqueness, it is difficult to identify and accurately predict how much people are ready to pay for

Omar's specialized LED lamps, which provide unique features and benefits not normally seen in

regular lamps and lampshades.

In conclusion, Omar's estimation of market potential may be inaccurate since he relied on

data that is too general and does not perfectly connect with his specialized LED bulbs.

Q3.)

Ans.) Omar's attempts to predict his future sales were mixed signals. He began by reviewing a

government survey, which revealed that the average Victorian home spends roughly $21 per year

on lamps and lampshades. Then he looked around to see how many households there were within

Victoria. Using this information, he determined that the city spends around $3.2 million each

year on lights and lampshades. Finally, he found average potential sales of $103,000 per

store(Skinner & Champion, 2020).

But here's a problem: this estimate may not be entirely correct because he was believing

that customers would pay the same price for his specialized LED lighting as they do for standard

lamps and lampshades. That's a large assumption to make because LED bulbs are a completely

different thing, with various features and pricing points.

Also, he didn't really consider who his clients would be or how much they were willing to

pay for his LED lighting. That is important since various people have varied budgets and tastes.

Finally, there's the competition. All competitors are not created equal. Some people may

be stronger at attracting consumers and completing contracts. Omar's estimate assumes that all

competitors will split the market equally, which may not be the case.

Q4.)

Ans.) Omar can use different methods to better guess how much he might sell in the future:

i. Online Tools: Omar can use special computer programs that use smart technology to

predict future sales based on various factors. These tools can help him make smarter

decisions. (Fitzpatrick, 2023b)

ii. Competitor Reports: He can read reports about the lamp business to learn more about

what's happening in the market. These reports usually have information about what

people like, who the competitors are, and how much the market is growing. (Fitzpatrick,

2023b)

iii. Financial Planning: Omar should plan out how much money he needs to start his

business. This includes things like buying equipment, renting office space, advertising,

and getting enough stock of lamps to sell. This helps him see if his business idea makes

financial sense.

By doing all these things, Omar can get a better idea of how well his lamp store might do in the

future. It's like using different parts to put together a puzzle and figure out the big picture.

Q5.)

Ans.) Omar should consider these issues:

i. Location is Important: So, first and foremost, his store's location is critical. He has to

choose a location that is easily accessible and where people are traveling. As in upscale

neighbourhoods, he can sell more LED lamps which directly gives him profit.

(Hecht,2015)

ii. Marketing and Advertising Plan: Omar has to design a good marketing and promotion

strategy. It doesn't have to be very complex, but it has to be successful. If he falls short in

this area, it might spell disaster. A good marketing strategy might result in a

larger budget, more consumers, as well as revenues.

iii. Researching Past: He can study the past if there are any patterns or trends in how

comparable things sold in the past. This can help him predict what might happen in the

future.

Q6.)

Ans.) If Omar wants to keep growing his business idea, he should create a detailed business plan

to have a clear roadmap. Here are the key things he should remember:

i. Market Research: Omar needs to gather information about the lamp market, his

competition, what customers like, and the latest industry trends. This data helps him find

opportunities and make smart decisions about things like product development and

pricing.

ii. Market Testing: Before opening a physical store, Omar could try selling lamps at events

like arts and crafts fairs or through an online store. This way, he can see how well his

lamps really do in the real world and how much customers like them.

iii. SWOT Analysis: Omar should do a SWOT analysis. It's like making a list of his

business's strengths, weaknesses, opportunities, and threats. This helps him understand
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what challenges he might face and what good things he can use to his advantage. It

guides him in setting realistic goals and making strategies that use his strengths and

opportunities while managing his weaknesses and threats.(Stumbles,2023)

iv. Funding: Omar should think about where he'll get the money to start, grow, and keep his

business going. He can explore options like loans, grants, or investors who want to

support new businesses. (Hecht,2015)

v. Expert Advice: Omar should seek guidance from experienced people in the business

world, like mentors, consultants, or experts who know his industry well. They can give

him practical advice based on their knowledge and experience.

References

Skinner, J.R., & Champion, T. (2020). Business Plan, Business Reality: Starting and Managing

Your Own Business in Canada (5th ed.). Pearson Canada.

Fitzpatrick, P. (2023, February 7). 10 Innovative Ideas For Company Growth | National Funding.

The Bottom Line by National Funding. https://www.nationalfunding.com/blog/10-

innovative-ideas-for-company-growth/

Hecht, J. (2015b, October 26). 6 factors in taking over an existing business. Entrepreneur.

https://www.entrepreneur.com/money-finance/6-factors-in-taking-over-an-existing-business/

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Stumbles, T. (2023). SWOT analysis: how to plan for success. Project Management Tips and

Tricks. https://www.officetimeline.com/blog/swot-analysis-how-to-plan-for-success