Unleashing Bespoken Spirits Potential: A Dual Approach to Innovation and Profitability

Abstract

Bespoken Spirits Case Analysis [Name] As most startups, Bespoken Spirits faces the problem of determining the most ideal business model to meet their long-term goals. Whiskey distillers have used the same method for distillation where the color, taste, and the quality of the end product is determined by the ageing process (Brecht 6). The organizations in the industry have attempted to use alternative methods but failed to develop technologies for products that meet the consumers’ product need. For Bespoken Spirits, the success in their ACTivationTM Technology implies that the company has to decide on how best to use the resource to generate profits. The success of their technology and access to funding means that they have to decide on the way forward for the company. With the current resources, the company can begin producing whiskey but it has a greater long-term goal to become a multi-billion-dollar organization. The first option for the organization is to invest in developing its unique products and building its brand based on the available technologies. Entry into the business to consumer type of model would allow the organization complete control over their products and ensure that it meets the stakeholder’s needs. Stu Aaron and Janousek would control the production and innovation products, thereby limiting the control from their business partners. However, this model would require over $20 million in funding to ensure they reach their growth model. The alternative would be to apply the business to business model where the company uses its technology to provide services to other organizations (Kalyanasundaram 81). They could serve as a maturation-as-a-service (MaaS) business for breweries, rectifiers, and distillers or a customization-as-a-service (CaaS) company for restaurants, retailers, and corporations. The problem for the company is that it has to decide between either of the two approaches or employ both models to achieve the long-term goal for the organization. Recommended Strategy Each of the two models or the use of both at the same time offers opportunities and challenges for the company and its founders. With the current funding and an access to a changing market of millennials and generation Z, I would recommend that the organization uses the product and service approach at the same time. This method would ensure that the firm has control over most of their profit generation activities through their product while mitigating the problem of requiring a significant time to grow through their service branch. To implement this approach, the organization should develop three separate segments operated differently but under the same brand (Esty and Fisher 9). At the top management level, the founders would be in charge of the overall processes and the technology used by the organization. They would control the organization’s growth and be consulted on the development of new products and services for the organization. Below this level, the company...