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Urban Axes First Mover in US Experiential Entertainment Case Solution

Solution Id Length Case Author Case Publisher
2403 1202 Words (5 Pages) Marilyn Anthony, Shreshthi Mehta Ivey Publishing : 9B21M021
This solution includes: A Word File A Word File

Urban Axes is a relatively new company that originated within Philadelphia in the United States. Despite its remarkable financial performance thus far which exceeded initial expectations, the organization holds massive potential for further development in an unexplored American market for axe throwing businesses. The company must indulge in marketing and advertising to increase its brand awareness amongst Americans and especially millennials, since they command a substantial consumer spending power of $1.3 trillion dollars .

Following questions are answered in this case study solution

  1. Franchising as an ideal option for Urban Axes

  2. The comparative disadvantage of pursuing Regional Expansion for Urban Axes

  3. Conclusion

Case Analysis for Urban Axes First Mover in US Experiential Entertainment Case Solution

Adopting a franchise model is an ideal method of not just capitalizing on the forecasted millennial-led boom in the American entertainment services industry for Urban Axes, but also an opportunity for growing the art of axe throwing nationwide. The franchise model is an ideal route for Urban Axes to take due to several reasons. Since Krista and her partners refuse to abandon their day jobs and view Urban Axes as a side hustle, opting for a franchise model would help them avoid the burden of having to expand the business geographically, which is a demanding task due to the significant amount of market research required to implement it. Axe throwing is an activity stereotypically associated with strong adults that are men. This perception can be harmful for Urban Axes since it severely limits its target market. Hence, the decision of portraying Krista as the face of the company alongside franchising will not only ensure that women are lured into availing Urban Axes’ services, but also the financial muscle required for marketing purposes and reinforcing acceptance of diversity and inclusivity for all people regardless of their age or gender. Moreover, with the franchise model, the franchisees will have to pay a good amount of capital for the purchase of the franchise and brand name of Urban Axes. Alongside this, a yearly subscription fee will be paid to the company owners, and this fee is forecasted to rise if the franchise runs successfully in the preceding year. Furthermore, the initial setup costs will also be dealt with by the franchise owners rather than Krista and her partners. Finally, the franchise model shall also be beneficial from economic perspective for Urban Axes’ owners, since the franchise owners will have to bear the losses after receiving licensing from the company. Also, in case the franchise model proves to be successful, Urban Axes will establish itself as a unique brand that offers a unique activity such as ace throwing without Krista and her partners having to spend huge sums on marketing and advertisement. The franchisees may engage in research and development of the game at their own expense, which can be beneficial in the future for the company since all the data shall be shared and can be used after the franchise licensing expires in case the company’s long-term ambitions revolve around operating independently. 

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