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Internal Entrepreneurship At The Dow Chemical Co Case Solution

Solution Id Length Case Author Case Publisher
1683 604 Words (3 Pages) Bala Chakravarthy, Hans Huber IMD : IMD145
This solution includes: A Word File A Word File

Dow Chemical Company currently sustains leadership position in the market and has strong brand name and positioning at national and international stage. Basic supporting infrastructure is available in the form of fixed capital, required skills and other supporting tools. Initial investment is also low due to online nature that eliminates the need of updating and maintaining many physical assets. e-Eproxy.com business requires no substantial capital other than skills to start and manage the e-commerce activities.

Following questions are answered in this case study solution

  1. Financial Feasibility 

  2. Market Feasibility

  3. Analysis of Organizational Capabilities

  4. Competitive Analysis 

  5. Technical Feasibility

Case Analysis for Internal Entrepreneurship At The Dow Chemical Co Case Solution

The projected costs and cashflows reveal that firm does not require to invest more than proposed budget. Moreover, initial projections also predict that firm will quickly achieve the break-even point through high return on investment. Top management has demonstrated commitment and allocated $1 million budget to support the new venture. Hence, cost of borrowing is low and firm is likely to face no major funding issues due to venture’s low-cost nature. Operation cost analysis suggests that firm will have minimal fixed costs and variable cost will also be low as operations will be managed online. Projected cashflow and profitability suggests firm will recover the initially invested money within a year. Overall, proposed project’s financial feasibility suggests Dow Chemicals to seriously consider e-Proxy for new e-commerce venture. 

2. Market Feasibility    

Market has potential to grow with time. Unserved segment “low price- acceptable quality” appears to be promising segment. Dow can take first mover advantage by setting the low-price rules and exploring the unserved low-end market. Quick money could be made from internet-based initiatives. This opportunity could allow organization to expand into other market segments and attract a large customer base due to ease of use. The market could be segmented and targeted segment requires low quality and usage ease. Dow can serve this niche by leveraging its organizational capabilities. standard test market strategy will be used to make necessary forecasting. 

3. Analysis of Organizational Capabilities

Dow Chemicals currently sustains market leadership position. It can take first-mover advantage and explore opportunities offered by quickly expanding e-commerce sector. Xiameter- basic framework is already available that could be used to enter the new market.

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