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123413 Bu Business Model.edited

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Marketing
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Montclair State University
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Running head: BUSINESS UNLIMITED 1
Business Unlimited: Getting a foot in the Door
Case Analysis
Name
Institution
Date

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BUSINESS UNLIMITED 2
Questions
1) What elements of the BU business model set it apart from its competitors? What does this
mean for the brand’s positioning?
Business Unlimited (BU) is a family business run by Rosen brothers and has a long term reliable
family manufacturer and supplier in Thailand (Venkatesan, Farris, & Wilcox, 2014). BU
business model is differentiated from competitors on a number of attributes: First, unlike most
retail shoe shops, "where customers come in to try on shoes," BU is an online store working with
a factory in Thailand to "create one-of-a-kind boots using customized measurements." Secondly,
in the course of business, “the Rosen brothers never meet with their customers in person nor
even handle the boots personally." Instead, communication is made via email and telephone to
obtain the customer requirements and communicate to the factory. Thirdly, unlike most retail
stores, the BU business did not have physical stores nor employees on salary. The fixed cost
incurred is only related to website hosting and maintenance and "a few other incidental fees."
This minimizes the costs, thus allowing BU to gain a higher profit margin (remains with
approximately 50% in gross profit margin) and also charge lower prices than competitors.
BU works make use of a family-run shoe factory in Thailand to make and supply boots to
the customer through a direct to customer distribution approach. The marketing is based on
Adwords aimed at reaching out to potential customers. This is followed by email and telephone
communications to get customers interest to convince them to place an order for the boots. The
product are positioned from the start as a customer can custom measure products to ensure they
order for most comfortable and fitting boots. It also develops a boost for the new niche markets
such as plus size, Exotic, and equestrian. Overall, the BU business sets it apart from competing
shoe retailers in the market.

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Running head: BUSINESS UNLIMITED 1 Business Unlimited: Getting a foot in the Door Case Analysis Name Institution Date BUSINESS UNLIMITED 2 Questions 1) What elements of the BU business model set it apart from its competitors? What does this mean for the brand’s positioning? Business Unlimited (BU) is a family business run by Rosen brothers and has a long term reliable family manufacturer and supplier in Thailand (Venkatesan, Farris, & Wilcox, 2014). BU business model is differentiated from competitors on a number of attributes: First, unlike most retail shoe shops, "where customers come in to try on shoes," BU is an online store working with a factory in Thailand to "create one-of-a-kind boots using customized measurements." Secondly, in the course of business, “the Rosen brothers never meet with their customers in person nor even handle the boots personally." Instead, communication is made via email and telephone to obtain the customer requirements and communicate to the factory. Thirdly, unlike most retail stores, the BU business did not have physical stores nor employees on salary. The fixed cost incurred is only related to website hosting and maintenance and "a few other incidental fees." This minimizes the costs, thus allowing BU to gain a higher profit margin (remains with approximately 50% in gross profit margin) and also charge lower prices than competitors. BU works make use of a family-run shoe factory in Thailand to make and supply boots to the customer t ...
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