Eastwind Trading Co. (A) case analysis where two professional women are considering a business venture. They have to measure the character of the opportunity, what options it opens if they're going to start a venture, and how they may finance the brand new venture.
Howard H. Stevenson; Martha Gershun
Harvard Business Review (393119-PDF-ENG)
March 15, 1993
Case questions answered:
Assess the nature of their opportunities, the possibilities each decision opens up if they want to pursue the company, and how they could and should finance a new business.
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Case answers for Eastwind Trading Co. (A)
The Harvard business school’s article Eastwind Trading Company (ETC) begins with two professional women who are considering a business venture. Prior to making their ultimate decision, they must assess the nature of their opportunities, the possibilities each decision opens up if they want to pursue the company, and how they could and should finance a new business.
While exploring and evaluating Martha and Gail’s opportunities, we realize that pearl buttons are distinctive products and assure the durability that Eastwind Trading Company could have. Given the fact that not too many companies are utilizing the same unique product, ETC has the advantage and potential to be long-term.
Moreover, the individuality of the product creates a competitive advantage, which makes it a great opportunity overall. However, in my opinion, Gail and Martha could add value to their company by using pearls in jewelry or other accessories. Thus, the product could be sold at higher margins due to its unique nature.
According to this analysis of Eastwind Trading Company, the market is currently rising. If the market continues to rise, the demand for pearl buttons will also climb, which will ultimately increase value. Nevertheless, handmade pearl buttons are an expensive market. It requires an abundance of time and skill to create such complex products, which in turn costs money.
After evaluating their opportunities, Martha and Gail need to consider their…