Michel Kripalani and Oceanhouse Media Questions and Answers Example

Q. 1.

i. Description of Michel Kripalani's Entrepreneurial Journey to Date.

Michael Kripalani graduated in 1989 with a degree in visual arts media and later started his first company. He created CD-ROMs and most trade show graphics. From the business of creating graphics and CR-ROMs, Kripalani acquired the skills that enabled him to start making Apps for smartphones, Apple gadgets and Kindle fire (Varaiya, 2015). He partnered with some of his college friends to make Presto Studios early in 1991. The studio was for creating high-end video games until 2002. He had to borrow $70,000 from friends and family to enhance his adventure of creating video games (Varaiya, 2015). Kripalani declared the end of the video game business and outlined that the cost of producing video games was high. Kripalani decided to work as a Director of Business Development in Montreal, Canada for five years before starting Oceanhouse media. Oceanhouse Media was formerly made to be the publisher of digital books and some digital apps for iOS and other Android devices.

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ii. Lessons Learnt from the Oceanhouse Media for Entrepreneurs.

Michael Kripalani's strategy made Ocean house Media to be ranked as number 114 by 2013. The organization was dedicated to providing various digital gadgets that were useful to both education, social association, and business approaches. After he had served in the market for five years, there was sprouting of competitors who made Kripalani think of an exit plan from his five-year-old venture (Varaiya, 2015). Kripalani, therefore, saw 2013 as a year that he could give in for mergers and acquisition as various challenges entangled the viability of Oceanhouse in the business market.

Kripalani risked in creating loopholes for the entry of other competitors in the market through maintaining a selfish attitude of owning the business as a family structure. Lack of entrance to other stakeholders rendered the facility to face stiff competition from the market. The increasing competitive pressures drove app prices towards zero thus challenging Oceanhouse since Kripalani had not tried to make differentiation of the services to prevent the aspect of being outdone from the market.

Additionally, the organization had not utilized non-equity funding which could open an opportunity for the organization to enhance its future growth. Another challenge that Kripalani was facing was the fact that the company was like a family business. Thus it lacked the necessary advice from different players in the economy (Varaiya, 2015). Oceanhouse was like an S-Corporation that only involved Kripalani and his wife Karen as the only shareholders. For that matter, the organization was serving at high risk of being outdone from the market due to lack of the financial power that could make it overcome the harsh competition from the similar mushrooming companies.

Q. 2.

i. Evaluation of the Economics of the Digital Applications of Market Regarding the Expected Growth and Profitability.

Since Kripalani expected to achieve growth, he could allow people to buy shares to enhance the capital base of the company to be able to fight any form of competition put up by the people who were eying the success of the business in NASDAQ. There were various potential apps opportunities like securing the license to work with famous artists and authors in the market. However, lack of enough capital made it a weakness for Oceanhouse Media and other companies emerged and took over the opportunities meant for Oceanhouse media. The company minimized the aspect of full-time employment of its personnel amid the reduction of employee compensation concerning the shared revenues by the individual apps created by the employees. Therefore, the element of limiting the shared compensation made the company focus mostly on the sale of digital book apps (Varaiya, 2015). Amid the dependence on digital book apps, Oceanhouse Media also concentrate on revenue collection from display advertisement and the making of mobile games. The facility, therefore, focused on selling a large number of digital apps as a way of aiming at resulting in positive profits and cash flow.

ii. How Oceanhouse Media Performed in the Economics of Digital Application

Oceanhouse Media focused on revenue creation without taking into concern satisfaction of its employees. Therefore, it started losing the essence of its employees to show their creativity after it nullified the portion of sharing benefits that the employees brought by making new apps. For that matter, the company failed to allude to the end user policy by apps for the devices that were operated by mobile devices. The availability of mobile devices made the demand for mobile apps to grow, but the Oceanhouse Media did not allude to the market due to lack of enough capital to expand the business (Varaiya, 2015). The growth and development of the digital world required the need to march apps to their developers to enable mass-market buyers to identify the providers that they could consider. Oceanhouse media failed in their approaches thus letting other providers take the advantage.

Q. 3.

i. Evaluation of Oceanhouse Media's Exit Options at the End of the Year 2013.

The exit option of Oceanhouse media was to consider consolidation. The economy had become so competitive, and the approaches that Oceanhouse were alluding to were old enough to limit its success in the mobile market (Varaiya, 2015). App stores and Google stores took the lead thus it was viable for Oceanhouse media to consider consolidation of the business or selling it altogether. Since Kripalani had spent five years developing the company, the most feasible approach was to discuss merger and acquisition due to the customer loyalty that the facility had accrued.

ii. How I Would Value Oceanhouse Media at the End of 2013.

I could value Oceanhouse media by the calculation of its assets. Additionally, the quality and qualification of its employees would add to the value of the company. Amid assets and requirement of the working staff, the company's worth would be calculated according to the market segmentation that it has established in the market according to the measure of customer loyalty.

References

Varaiya, N. P. (2015). Michel Kripalani and Oceanhouse Media: A journey of Serial Entrepreneur. Baylor University, p.302-320.