Summarize Globe Sherpa’s business model.
Globe Sherpa’s business model like any other business success design identifies sources of revenue as well as the provision of products that are customer based. For instance, the company has raised revenue of over $ 3.5 million to date, which is meant for further investment. Furthermore, the company also plans to integrate its online tickets with an aim of finding urban transportation options. In other words, Globe Sherpa Company plans to integrate the car sharing options, the transit times together with other features so as to diversify consumers’ choice. This defines its business models as that which is based on profitability and customer satisfaction.
Describe the company's strategic position.
Although Globe Sherpa faces stiff competition in the industry, it has a favorable strategic position particularly due to its products that are acceptable national wide (Osterwalder & Pigneur, 2013). This is along its vision of building scalable solutions for its clients across the country. Another probable cause for its favorable strategic position is the advancement in technology, for example, in mobile ticketing. Using the mobile ticketing app, customers can buy TriMet tickets from their mobile phones, a service that is not available in its competing firms. Nevertheless, the company’s founders Michael Gray, and Nat Parker note there is a need for additional financing for expansion to move out of the crowded and competitive space.
Summarize key risks that the company faces.
The first critical risk that Globe Sherpa is facing is an increase in competition that may end up reducing her market share if not well huddled. Furthermore, an increase in the competition implies that pricing also becomes competitive which may further affect the company’s profitability adversely (Jolly, 2003). Besides, the company faces a significant financial risk that may lead to a loss of revenue due to encroachment by competitors. In essence, failure to expand its business, which largely depends on the availability of finances, may lower the company’s profitability significantly.
Jolly, A. (2003). Managing business risk. London [u.a.: Kogan Page.
Osterwalder, A., & Pigneur, Y. (2013). Business model generation: A handbook for visionaries, game changers, and challengers. Hoboken, N.J: Wiley.