RedBalloon Business Case Analysis

This assignment analyzes the business success of RedBalloon, a company founded by Australian entrepreneur Naomi Simson. It examines the company's competitive positioning, superior market standing due to its unique experience offerings, strong employee culture, and customer-friendly interface. The analysis also provides recommendations for enhancing RedBalloon's profitability and growth through brand partnerships and strategic investments in complementary businesses.

Running head: ENTREPRENEUR
Entrepreneur
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
Introduction:...............................................................................................................................2
Background:...............................................................................................................................3
Entrepreneurial Traits:...............................................................................................................3
Opportunity recognition and Idea development:........................................................................4
Nature of Businesses Developed and Competitive benefit:.......................................................6
Recommendations:.....................................................................................................................7
Reference....................................................................................................................................8

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Introduction:
In this report, an attempt is made to analyse an Australian Entrepreneur who have
accomplished success in business venture. Entrepreneurship is a method of scheming and
operating a business in the unique way to gain profits in the most effective manner.
Entrepreneur is an individual who commenced a business operation that usually assisted by
small amount of fund that is the capital of the business to run the whole operation of the
business. Naomi Simson is one of the brightest entrepreneurs in Australia. She commenced
her entrepreneurship journey in 2001 with a second hand computer and $ 25,000 to start
Redballon that is a retailer of gift that is based in Australia. These have served more than 3.5
million customers. She was in the list of Top 30 entrepreneurs female in Australia on the year
of 2016.
Figure 1: Red balloon
(Source: red balloon.com)
Background:
Naomi Simson born on 1964 in Australia is a founding director of Redballon venture
that is based on Online retailing of gifts that is established in Australia. This is under the Big

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Red Group that is the parent company of Redaballon and this operates under them. She has
received various kinds of awards like Lifetime Achievement silver Stevie Award on the year
of 2013 (Schaper et al. 2014). She is known by a range of tags like entrepreneur, business
person, speaker, influencer, blogger, author and innovator. She has wrote various books like
Ready to Soar, I want what she’s having, and Live what you love. She is a judge and an
enthusiastic investor in the TV show of Shark Tank in the Channel Ten. Before starting
Redballoon she worked with big businesses like KPMG, IBM, Ansett Airlines and Apple in
the field of Marketer in the corporate world.
Entrepreneurial Traits:
The traits of a thriving entrepreneur are to achieve the set targets and goals on time. There
are assortments of characteristics that possessed by an entrepreneur for commencing a
business and running it successfully like:
 Motivation and passion for the work and task will decide the triumph of the business.
The dedication and going an extra mile is very much required to grow the operations
of the company and earn profits. Naomi Simson always works hard enough to
complete the task in hand at the most effective manner. She is passionate and
dedicated to her company (Azmat and Fujimoto 2016).
 Creativity is the chief driver for the term entrepreneurship and new businesses
requires doing the job by applying a new innovative method to complete the task at
most efficient manner possible. Naomi Simson is an influencer and innovator in the
world of business. She is also very enthusiastic judge and investor in TV show
broadcasted in Channel Ten.
 Tolerating of risk in the business is the toughest and bravest character that of an
entrepreneur to posses. The future of any new venture is uncertain but there should be

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a self-belief and appropriate work is in line to achieve the goals in time. Naomi
Simson has received various awards in her lifetime. These awards are usually given to
praise the businessperson for taking of the risks and for making the world an
admirable place to subsist (Ratten and Dana 2015).
 Dynamism is the best way to do business in this present condition. The adaptability to
new changes in the elements of business and flexibility in accepting the new changes
in the business and also gathering inputs for the business betterment. Naomi Simson
started Redballoon that is established in online retail industry that requires adapting to
the changing rules of the world of business.
Opportunity recognition and Idea development:
The process of recognition of opportunities that a businessperson like Naomi Simson
is well understood about the corporate world so she was unable to persist with her job in
highly promising future with a good salary package and perks that usually fulfils the desires
of an employee. She acknowledged the fact that she worked as a marketer in big companies
like Apple, IBM, etc. Now, she owns various types of businesses like RedBalloon that online
retail for gifts. The acknowledgment opportunities she gained many triumphs in her
company. She has an opportunity of branding and selling the brilliant gifts in the e-market by
applying her expertise knowledge of the field of marketer (Alaslani and Collins 2017). The
opportunity should be combined with possessions she can invest to gain the maximum and
run the business for long run as effectively as possible. This is detected that the company
RedBalloon facilitates a solitary dais by advertising and bringing in concert of companies in a
group that delivers experiences. Now, she can connect the dots just by looking at the past as

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observing changes in markets, demographics and technology in the industry. This is
dedicatedly utilized for her own benefits and gains.
The process of idea development is vital for the entrepreneur for the business to
triumph. Naomi Simson similar to any entrepreneur had to endure a procedure when creating
her venture proposal. At first, she acknowledges a prospect in a market that was created that
to be known as RedBalloon. She then assessed the proposal or thought and inspects if this
fulfils the requirements of her consumers. She initially created making an investment in a
website for $ 25,000. She advertised the company RedBalloon in the most innovative manner
by tying to a briefcase. She walks all the places in Sydney by hoping websites link to be
visible to the public. After few sale of her products, she used to receive the calls by acting as
a call centre for receiving the direct feedback from the customers (Maritz 2015). Later on
Naomi Simson found an expert web developer who did the entire web-developing job on
casual basis and he was the first employee of the company from the initial stage. In the initial
years of the company, they have to persuade and beg for business with suppliers. The initial
years were tough times for Naomi Simson as for the suppliers this online retailing was new
concept that required time for them the concept and adapt to this new version of retailing.
Additionally, because of her earlier experience in the work and communications was capable
of having corporate clients.
Nature of Businesses Developed and Competitive benefit:
Naomi Simson has founded the company RedBalloon with a second hand computer
and $ 25,000 as capital from her home. She shifted her from home to a new building as the
number employees got increased to more than the capacity of her house. The company
RedBalloon is retail shop based in online to sell their gift vouchers for an array of
experiences. Starting from spa dates to skydiving provided by the company just fulfil the

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desires and tastes of all type of customers (Maritz et al. 2015). She made the company just
exclusively for retailing purposes but it got wider to provide everything possible in one place.
Naomi Simson is the brightest entrepreneur and a businessperson who knows to appreciate
the loyal customers of RedBallon by providing them vouchers for free just for their loyalty.
This voucher is given to the employees of RedBalloon for their work in the company. She
also praises a tactics of creating a bond with key companies that composed of trustworthy
brands. Therefore, it is detected that Naomi Simson’s key target market is big corporate and
her secondary targets are the customers who desires for to have experience as a gift that is an
alternative (Chow 2015). The good reputation in the market is due to the big corporate
companies as its clients. The customers will observe the company to be trustworthy brand to
transact. The reputation is earned this usually not demanded or bought from any market place
in the globe. Redballoon divided the operations into two parts, in one it carries’s on to sell
experiences and in the other is a gift-wrapped product like flowers and handbags that will be
delivered in physical.
Competitive gain is a stage where the company is ahead than most or all the players or
competitors in the market to endow with a service or a good that are inimitable in its own
ways. Naomi Simson has started and founded the company named RedBalloon has
competitive gains as it provides experiences that are offered by very few companies in the
world. Naomi Simson’s company has a superior positioning in the market that is uncontested
because of their excellent work done by RedBalloon. They fulfil all type desire and needs of
their clients to give them the great experience with the RedBalloon. The employee of this is
self-motivated as they share the same mission and vision in their life to provide great
experience to the customers (Ramadani 2017). They have a great culture in their workplace.
This site is updated from time to time to develop it be more customer friendly interface for
their clients. This company is stands tall than other in the same is due the service and goods

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provide at affordable rates and experience is the top notch that is the most vital for the
company like RedBalloon as they never compromise with their quality.
Recommendations:
Naomi Simson is one the female who was listed in top 30 entrepreneurs in Australia.
She runs a business that is the most trustworthy plus has good reputation in the market. It is
advisable to hold the reputation of the company RedBalloon and make this venture more
profitable by associating the brand with more credible brands in the market.
Naomi Simson is an enthusiastic investor and judge in a show of Channel Ten where
she is an angel investor. She can select a good business that is most appropriate to linked with
her company RedBalloon and it most likely to succeed in the future with little bit of risk. That
might enhance the RedBalloon’s experiences to new highs for its clients.

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Reference
Alaslani, M. and Collins, J., 2017. The Blocked Mobility Hypothesis and Muslim Immigrant
Entrepreneurship in Sydney, Australia. Review of Integrative Business and Economics
Research, 6(3), p.333.
Azmat, F. and Fujimoto, Y., 2016. Family embeddedness and entrepreneurship experience: A
study of Indian migrant women entrepreneurs in Australia. Entrepreneurship & Regional
Development, 28(9-10), pp.630-656.
Chow, G., 2015. Key factors and forces that shaped the baby-boomer generation of ethnic
Chinese entrepreneurship in Australia (Doctoral dissertation, SWINBURNE UNIVERSITY
OF TECHNOLOGY).
Maritz, A., 2015. Senior entrepreneurship in Australia: an exploratory
approach. International Journal of Organizational Innovation (Online), 7(3), p.6.
Maritz, A., Jones, C. and Shwetzer, C., 2015. The status of entrepreneurship education in
Australian universities. Education+ Training, 57(8/9), pp.1020-1035.
Ramadani, V., 2017. Alex Maritz is an Associate Professor of Entrepreneurship and
Innovation at Swinburne University of Technology, Melbourne, Australia. Alina M. Zapalska
is the Professor of Economics and Director of the Honors Program at the US Coast Guard
Academy, where she teaches Economics since 2005. Her extensive and varied teaching
experience spans 30 years in the US and. Entrepreneurship and Management in an Islamic
Context, p.243.
Ratten, V. and Dana, L.P., 2015. Indigenous food entrepreneurship in Australia: Mark
Olive'Australia's Jamie Oliver'and Indigiearth. International Journal of Entrepreneurship and
Small Business, 26(3), pp.265-279.

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Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.