The Earth Buddy Case Summary
In order to start up a business, it is vital to make big decisions regardless of the future outcome. Harary, Rabie, and Varadi who are known as the founders of Spin Master made two very important decisions in the beginning of their journey. Those decisions consisted of which toy they wanted to launch first and how they would introduce it. In this particular market, a product that is introduced by the company can either make or break the effort put into the business venture. Spin Master wanted their first item to be unique and creative while meeting the expectations of the target market The Earth Buddy was the first product that increased recognition and respect in Spin Master’s company. Most of the decisions that were made by the three university
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A main decision error that the company can fall into is making predictions and decisions based on earlier success. It is proven that in the toy industry the average lifetime of a product is known to be 18 months which makes it important for the company to be up to date with style. The company shouldn’t make the mistake of innovating a product in this constantly changing environment because each product should have a unique competitive advantage. These types of decisions should not be made because it is programmed and known to be available heuristics which should be avoided at all times. The original product should not be reinvented since it will not allow for an opportunity to reach success at its peak. According to the fast pace speed of the market, representative heuristic is also something that should be avoided since a reinvention will take away from the original invention. Since the toy industry is mainly marketed towards children, it is crucial that predictions based on reactions are not made. If these types of predictions are made, then framing error will take place which is defining something as a positive or negative without looking at the product as
A main decision error that the company can fall into is making predictions and decisions based on earlier success. It is proven that in the toy industry the average lifetime of a product is known to be 18 months which makes it important for the company to be up to date with style. The company shouldn’t make the mistake of innovating a product in this constantly changing environment because each product should have a unique competitive advantage. These types of decisions should not be made because it is programmed and known to be available heuristics which should be avoided at all times. The original product should not be reinvented since it will not allow for an opportunity to reach success at its peak. According to the fast pace speed of the market, representative heuristic is also something that should be avoided since a reinvention will take away from the original invention. Since the toy industry is mainly marketed towards children, it is crucial that predictions based on reactions are not made. If these types of predictions are made, then framing error will take place which is defining something as a positive or negative without looking at the product as