Entrepreneurial Strategy for ROLI: Overcoming Premature Market Challenges

This report discusses the current strategic issue faced by ROLI, a London-based musical instrument manufacturer, and provides recommendations for overcoming the challenges. It explores the background of the company, the issue of working in a premature market, and the key links between theory and practice of entrepreneurial strategy making. The report also suggests growth strategies for the business and highlights the stages of small business growth that can be applied to ROLI.

ENTREPRENEURIAL
STRATEGY

EXECUTIVE SUMMARY
This report is written in context with ROLI which is London based medium size company
offering musical instruments to their customers. This company is established in the year of 2009
and founded by Roland Lamb. Main product manufactured by the company is seaboard. Main
issue which is discussed in this assignment is working of ROLI in premature market due to
which sales of company is less. To overcome this problem different stages of growth are
mentioned so that current strategic issue can be resolved properly. At last, recommendation to
gain growth is also discussed.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of the company...................................................................................................1
Current strategic issue faced by the concerned organisation..................................................1
Appropriate model for growth of entrepreneurial business ...................................................1
Growth strategies for business ...............................................................................................1
Key links between theory and practice of entrepreneurial strategy making..........................1
CONCLUSION ...............................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Entrepreneurial strategy is referred to the procedure of creating new products and
formulating approaches in constrained working environment. Entrepreneurs are those individuals
that take risks so that a unique and innovative product can be offered to customers that will allow
them to earn high profits (Buwule and Mutula, 2017). This assignment is prepared on ROLI
which is a UK based music technology, offering innovative musical instruments to their
customers, mainly seaboard. This firm is founded in 2009 and headquartered in London. This
assignment will mention about the current strategic issue faced by concerned company and
linkage between practice& theory of entrepreneurial strategy making.
MAIN BODY
Background of the company
ROLI is a medium sized musical instrument manufacturer, headquartered in London, UK.
Instruments which are prepared by company are used by high scale musicians like A.R. Rahman,
Hans Zimmer etc. First prototype of Seaboard instrument is designed by company to overcome
the mechanical interface limitation of piano keyboard. Products of company are sold in around
40 nations (Shan, Song and Ju, 2016). First instrument of ROLI is a seaboard which is a
synthesizer controller based upon piano keyboard. Instrument posses surface made from pliable
silicon due to which musicians are able to play in between keys of a standard keyboard of piano.
Other products of company is BLOCKS which is a customer-oriented control system able to
connect with Bluetooth. Company has also developed some software like NOISE app and the
Equator software synthesizer. All of these products are innovative and new for common
customers due to their innovative features (Fadda and Sørensen, 2017).
Current strategic issue faced by the concerned organisation
ROLI offers innovative musical instrument such as Seaboard and Blocks to their
customers along with software like Equator software synthesizer and Noise app. Other services
associated with company are social music sharing platform named Blend and virtual instrument
developed Fxpansaion. Products of company are very innovative and overcome the limitations in
existing musical instruments. In this context, company has also received some awards like
designer of the year, 2015 product of the year etc. But still, company is not gaining wide
popularity in marketplace. There are different business issues which are faced by the company
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like working in premature market, limited business growth etc. Main strategic issue faced by the
company are “Running business in a premature market where problem of low demand is severe”.
This issue takes place because people do not have much knowledge about the products offered
by company (Garg and Eisenhardt, 2017). Also, these products are expensive due to their
innovative aspects. This is the reason demand for innovative products of ROLI is quite less in
comparison with the traditional music instrument. Due to this, company is not able to earn high
profits and revenues in market place and growth of company is very limited. This issue has
impacted the popularity of company in a negative manner (Salama, 2016).
Key links between theory and practice of entrepreneurial strategy making and appropriate theory
for growth of entrepreneurial business
There are different theories and models which can be used by the business owner of
concerned company to manage growth of company (Omotosho and Anyigba, 2019). This is
because at present company is performing their business operations in a Pre-mature market and
the best way to sustain in market is to attain growth. In this context, a theory is applied below so
that current business issue at ROLI can be resolved in a proper manner:
Stages for small business growth
Maintaining the issues and growth patterns in a small business helps entrepreneurs in
attaining expected outcomes. Stages of growth for small business will help the business owner of
ROLI in resolving their current business issues. Along with this, it will help the company in
formulating further strategies so that high revenues can be earned in small scale business.
Different stages for growth achievement are mentioned below:
Existence: In this phase, main problem faced by a small company is lack of customer
base due to which sales of a company became less. This further results in reduced revenues and
profits (Johnson, 2016). ROLI also faced this problem when they start their business, this is
because products of company are advanced and innovative due to which customers do not have
much knowledge of using them. This is the reason demand of products was low along with
revenues of company. During this time, company was barely existing in marketplace in the
minds of customers.
Survival: This is the second stage for a small business to gain wide popularity. At this
stage, products of a company became somewhat popular and potential customers starts
acknowledging about the merits of these products. Main issues in this stage that can be faced by
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a company are related with capital and cash flow. ROLI which is a musical instrument company
has initiated their business in 2009 and company also faces lack of capital and assets to manage
their business operations. To overcome this situation, business owner at ROLI has raised funds in
2014, 2016 and 2017. Total funds raised by company in 2014 and 2016 are around 39.8 million
dollars. These funds have allowed the company to perform their business activities without
shortage of money (Johnson and Van de Ven, 2017).
Success: This is the most critical stage for a business where an entrepreneur has two
options i.e. whether to expand the business of company by exploiting their accomplishments or
to maintain stable sales and profits. In context with ROLI, company is at present facing this
situation. Low growth has limited the profitability of company. Hence, Owner in ROLI is going
to use the platform of company for growth. Here, business owner of ROLI will consolidate the
firm and marshals the resources for business growth.
Current business issue of company is “Running business in a premature market where
problem of low demand is severe”. To increase the demand of their product, ROLI is needed to
initiate business campaigns and workshops where customers will be allowed to use the products
of company for free. By this, they will be able to acknowledge the innovative features of product
and this will attract them to buy those products. Also, concerned firm can advertise their
products and software to the musicians or other people which are interested in music. This will
increase the interest of music oriented people in the products of ROLI. This will help the
company in gaining expected growth in business so that high revenues and profits can be
attained (Karami, 2016).
Take-off: After implementing some strategies to achieve growth, this stage is related
with growth at fast pace. At this stage, main issue faced by the owner of a small or medium sized
company is to attain rapid growth in business so that high advantage over rivals and other
business persons can be gained properly. At this stage, an entrepreneur is required to delegate
some important responsibilities of business to other key employees so that complex tasks can be
performed in a simplified manner. In case of ROLI, after implementing growth and success
strategies for business, business owner is required to share some burden of business with other
talented individuals. If business work will be divided and given to people as per their expertise,
this will help them in getting high outcomes irrespective of complexities. Also, owner of ROLI
will be required to manage their managerial and financial aspects in a systematic manner so that
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expected acceleration in growth can be acquired (Spigel and Harrison, 2018). This will benefits
the concerned company in high selling of their seaboard and other products that will results in
wide recognition and revenue making. If company fails to gain rapid growth, owner can still
continue successfully with the present growth of company. Failing at this stage will not leads to
failure of entire business.
Resource maturity: This is the last stage that will be faced by an entrepreneur during
growth of a business. At this stage, a business gained desired success and sales due to which
growth percentage of company is good. But at this stage, products of a company are already
brought by customers do to which market became saturated. To further gain growth in such
situation, business owner of ROLI will be required to check and monitor the features of their
product so that inefficiencies can be removed and new aspects can be added as per latest trend.
By this high growth can be gained in saturated market as new features will force customers to
buy the product and services of company (Linton and Kask, 2017).
Five stages mentioned above is a theoretical concept which is used by the business owner
of ROLI to solve their issue related with less business growth. This issue takes place because
products of company are based on new technology and people have no idea how to use it. This is
the reason demand for products of ROLI is less. With the help of these stages, a practical
solution and strategies have been identified by owner so that high growth in concerned medium
scale business can be gained.
Other growth strategies for business
There are some other growth strategies that can be adopted by the entrepreneur of a small
or medium sized business like ROLI so that strategic business issues related with growth can be
overcome. Some of these strategies are listed below:
 Expanding business at other locations: Opening of business at different places will
help the company in promoting their products to maximum customers due to which high
sales and revenues can be earned. This will allow the company to gain desired success
(Mosey and Kirkham, 2017).
 Online promotion of business: Music is a profession which is adopted by limited
people. Hence, customer base of company is diversified and less in number. To gain the
attention of potential customers, owner at ROLI can promote their business via online
and digital media.
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TOWS on concerned organisation
This framework will benefits the manager in ROLI to acknowledge their strengths and
opportunities so that they can earn high revenues. Along with this, weaknesses and potential
threats will also identified and linked with opportunities and strengths so that they can be
transformed into strengths. TOWS for ROLI is performed below:
Basis Opportunities Threats
Strengths SO
Company has won several
awards due to their innovative
and unique products. By
further innovation in their
product, company can
maximise their image in
market.
ST
In 2014, company achieve
“Design of the year award”. If
this firm will not be able to
innovate new products,
customers of company may
not retain for maximum time.
weaknesses WO
They do not have high growth
in their sales and revenues due
to operating in premature
market. Company can
advertise and promote about
their products so that
maximum people can
acknowledge about it and
company can earn high sales.
WT
People do not have much
information about innovative
musical instruments .As
technology is increasing day
by day, other companies are
also performing technological
experiments with musical
instruments. Due to this,
competition is high for
company to became a market
leader.
Porter's five forces
This framework will help the owner of ROLI to evaluate those marekt forces which are in
their favour and which are not beneficial for them. By this, it will be easy for ROLI to carry out
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appropriate modifications in their business operations to earn high profits. These forces are stated
beneath:
 Competitive rivalry: ROLI seaboard which is the first product of company and other
instruments has gained wide recognition as base of musical instruments for future. Due to
this, brand strength of company has increased. This force is low for company.
 Threat of substitutes: As technology is changing and advancing day by day, threat of
substitute is high for ROLI. Company is needed to improve their products on regular
basis to sustain strong presence in market.
 Threat from new entrants: This force is low for ROLI because in present time, few
musical companies are trying to introduce innovation and uniqueness in their products.
But this, threat can be increased in future to a great extent.
 Bargaining power of suppliers: As demand of products which are produced by ROLI is
less, materials and equipments are easily available. Hence, this force is low for company.
In future, if multiple companies will operate in same filed. This force with became very
high.
 Bargaining power of customers: People do not have much information about the
products of company due to which their demand is less. Hence, this force for ROLI is
very high because to sustain a stable customer base, company is needed to follow their
demands and opinions considerably.
Recommendations
There are some strategies that can be recommended to the entrepreneur of a ROLI so that
strategic business issues related with growth can be overcome. Some of these recommendations
are listed below:
 Owner of ROLI is recommended to promote about their products to maximum people. By
promoting and advertising through social platforms company can reach up to millions of
customers in shortest time without spending much money. This is the best way by which
ROLI can achieve expected growth (Miocevic and Morgan, 2018).
 Business owner of ROLI is recommended to expand their business at multiple locations
rather than expanding work operations at a single place. By this, company will be able to
gain attention of more number of customers and their products will be acknowledged by
people in positive manner.
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CONCLUSION
As per above given project, this can be comprehended that to achieve good outcomes, an
entrepreneur is required to adopt certain concepts and measures. Each small scale business is
needed to adopt different growth strategies so that business can be expand in a considerable
manner. By using SWOT analysis, concerned company is able to acknowledge their weaknesses
and strengths in a clear manner. Porter's five force helps a company in identifying those business
forces which can be beneficial and harmful for their business. With the help of different models
and theories related with growth, an entrepreneur can acquire desired growth in business.
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REFERENCES
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