Diego Arreola Venture Strategy Day 1
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Transcript of Diego Arreola Venture Strategy Day 1
Why Kakigori?• There is a long tradition of shaved ice
deserts in Mexico, but these are mainly focused on cheap “snow-cone” style offerings from street vendors.
• The constant warm climate in Mexico would make for a year-round product.
• Wide offering of Kakigori machines from Japan and a large supply of cheap high-quality ingredients makes for a simple but novel product that offers large margins.
• Simple set-up, preparation costs, and equipment acquisition assure that Kakigori stations can be easily scalable to any market and location.
New Entrants:Entry Barrier Low
High Imitation Rate
Suppliers:Fresh Fruit Vendors
Specialized Equipment
Buyers:Price Sensitive
Product Novelty
Competition:Local Products
Traditional Vendors
$472,500. Net Profit $284,157
2016
$1,102,500. Net Profit $663,033
2017
$157,500. Net Profit $94,719
2018