Assessing the business opportunity for a new venture
Situation:
* Large, publicly-traded software company develops new technology
* Wants to spin-off a new venture to commercialize
* Expects new venture to be more nimble and grow without earnings drag on parent
Goals:
* Assess the business opportunity and prospects for success
* Leverage company’s intellectual property
SpringSmart role:
* Research target market
* Determine market size and key segments
* Evaluate competitors and competitive dynamics
* Assess the venture’s revenue potential and risks
Results:
* Target market would not support required revenue levels
* Identified more attractive alternative markets
* Information and analysis used to attract CEO and executive team to the venture
