HuStream Case Study
Order Instructions:
1. What is the long term business strategy for HuStream? In which areas should the business model be directed? You may use any appropriate business model to analyze their business.
2. How should HuStream’s co-founders seek the funding needed to support their company’s growth? Discuss the revenue model.
3. What partnership model should the co-founders pursue to promote the use of digital ecosystems to enhance their customers experiences and value propositions
4. Describe the IT platform HuStream has developed to date. Is this platform aligned to HuStream’s business strategy? If so, how has the user experience helped or hindered?
5. What principles of strategic execution should HuStream use?
SAMPLE ANSWER
HuStream Case Study
- What is the long term business strategy for HuStream? In which areas should the business model be directed? You may use any appropriate business model to analyze their business.
HuStream seeks to reach a larger customer base through the Do it yourself (DIY) business model. This involves productizing its interactive video technology, such that it allows customers to easily access and generate their own videos using its SDK interface without the need for professional support. This is to be achieved through the Pay as You Go model in the form of per-video-profit-model, where HuStream will charge a per-episode fee and negotiate prices downwards with increasing volumes (Denne, 2007). In order to enhance efficiency, this business model should be directed to the developers, creative teams and the client services team. While the development and improvement of the online platform is highly relevant to the business strategy through ensuring innovation and uniqueness, knowing the clients’ needs and their views on the quality and pricing are also of importance in defining the business strategy outcome.
- How should HuStream’s co-founders seek the funding needed to support their company’s growth? Discuss the revenue model.
HuStream’s co-founders should follow the fee-for service revenue model to support the growth of the company. This is a model in which customers pay for the services they use at any particular time (Mayer, 2012). HuStream aims at providing customers with a platform in which they can access DIY videos and it would be most appropriate to charge customers as they use the services. The revenue generated can then be used to support the company’s growth.
- What partnership model should the co-founders pursue to promote the use of digital ecosystems to enhance their customers experiences and value propositions
HuStream co-founders should utilize a sub-contracting partnership model that brings together the co-founders, channel partners and external software developers (Lawton and Michaels, 2001). HuStream must establish partnerships with related companies to bring desirable skills and resources in a bid to promote the use of digital ecosystems. The partnership model should encompass a relationship where the co-founders control a majority stake while the others take a supportive role in terms of subcontracts, where each will be compensated by the level of effort put in or through a contract agreement. The external software developers will play the role of bringing in modern technology, innovative applications and software development skills while channel partners will market and sell the products. Channel partners should include entertainment industry and website owners.
- Describe the IT platform HuStream has developed to date. Is this platform aligned to HuStream’s business strategy? If so, how has the user experience helped or hindered?
HuStream began with the use of a cloud-based platform on the internet from which clients can conveniently access and use to build interactive material according to their needs. This is aimed at providing users with unique experiences through features and functionalities that help customers create their own stamps. HuStream has also developed a video production hub which initially helped customers produce high quality video content using the software development kit (SDK). With advancement in technology and changing customer needs, HuStream seeks to pursue a product-based model, where the user-friendly SDK interface will help customers generate their own videos. This is in line with the organization’s strategy and through the SDK interface; HuStream will achieve its objective of productizing its business and hence reduce focus on service-based model. The user experience has enhanced this strategy because it has worked by reducing the need to rely on professionals to develop videos and manage accounts.
- What principles of strategic execution should HuStream use?
In enhancing strategic execution, HuStream should ensure that the principles of focus, leverage and accountability. Focus demands that the company stays committed to its goals. This includes providing the best solutions for customers through innovation, following the business strategy and maintaining fruitful partnerships (Parise, 2006). Given the limited resources that are available to companies against the growing demand from customers, leveraging these resources of great importance as it will ensure that the company can achieve greater milestones for less. Consequently, profitability and company growth will be assured. Lastly, accountability is of essence and following consistent actions in line with the company’s objectives will ensure that HuStream achieves the desired results. Accountability is about ensuring that HuStream can deliver what it promised to customers in terms of performance and quality (Parise, 2006).
References
Denne, M. (2007). Pricing utility computing services. International Journal of Web Services Research, 4(2), 114-127. Retrieved from http://search.proquest.com/docview/203139084?accountid=45049
Lawton, T. C., & Michaels, K. P. (2001). Advancing to the virtual value chain: Learning from the dell model. Irish Journal of Management, 22(1), 91-112. Retrieved from http://search.proquest.com/docview/207641214?accountid=45049
Mayer, L. H. (2012). The “independent” sector: Fee-for-service charity and the limits of autonomy. Vanderbilt Law Review,65(1), 49-122. Retrieved from http://search.proquest.com/docview/927738318?accountid=45049
Parise, M. J. (2006). Strategic Execution Manual. Virtualbookworm Publishing. College Station, TX.
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