Beyond: February 23

Here is what you'll gonna learn in the next 10 minutes or less!

1. SaaS Due Diligence Checklist to Close a Successful Deal
2. How did Kmart lose a 2500 Retail Store Empire?
3. How a 9.7 inches tablet Lost $3.3 Billion for HP?
4. How Nick Woodman's Turned $250K into $2.9 Billion for GoPro.

Here are this Week's Giveaways!

SaaS Acquisition Checklist

The SaaS Due Diligence Checklist to Close a Successful Deal

How did Kmart lose a 2500 Retail Store Empire?

Did you know that when Kmart filed for bankruptcy in 2002, it was one of the biggest bankruptcy filings in the US at the time?

Kmart was founded by Sebastian S. Kresge in 1899 as a five-and-dime store in Detroit, Michigan, which was earlier operating the S.S. Kresge Company discount stores since the late 1800s.

Kresge's vision was to offer quality goods at affordable prices to working-class consumers, pioneering the concept of discount retailing in the United States.

But after running the business for more than half a decade by his vision, he made way for Harry B. Cunningham who became Kresge President in 1959.

Cunningham had been studying other discount houses and developed a new strategy for the Kresge organization.

Kmart was his idea to differentiate itself by offering a wide selection of merchandise at discounted prices of as low as 50 cents, catering to budget-conscious shoppers seeking value and convenience.

In 1962, Kmart Corporation was officially launched, marking the beginning of its expansion into the discount retail market. Kmart’s frontrunner was "blue light specials", these were ad hoc and impromptu sales events, announced over the store's public address system, attracting bargain-hunting customers, this was a great strategy to get people coming in. The chain was a one-stop shop for everyday essentials, apparel, home goods, and more, capturing market share and establishing a loyal customer base.

Do you know that at one point in time, Kmart operated more than 2500 Stores in the US continent?

• In 1976, the brand made history by opening 271 stores in one year, becoming the first-ever retailer to launch 17 million square feet of sales space in a single year.
• In 1977, nearly 95 per cent of S.S. Kresge Company sales were generated by Kmart stores.
• At its peak in the 1980s, Kmart was one of the largest retailers in the United States, with annual revenues exceeding $36 billion and over 2,000 stores nationwide.
• Kmart introduced variations of its stores to cater to different customer segments and shopping needs.
• “Big Kmart” stores featured expanded product selections and amenities, while “Super Kmart” locations included full-service grocery departments, making them one-stop shopping destinations for consumers.

Did you know that Kmart, Walmart and Target, all brands were officially launched in 1962?

• Origins: Kmart, Walmart, and Target all emerged in the mid-20th century as discount retailers catering to budget-conscious consumers.
• While Kmart was initially a dominant player in the industry, Walmart and Target quickly gained momentum and market share.
• Walmart’s relentless focus on heavy discounting, operational efficiency, and aggressive expansion made it difficult for KMart to compete.
• Walmart’s everyday low-price strategy and emphasis on customer value resonated with consumers, enabling it to outpace Kmart.
• Target rose the ranks of retail success, trumping K-Mart after Walmart, it did it through an upscale shopping experience, stylish merchandise, and a focus on design and aesthetics.
• Despite its early success, Kmart struggled to maintain its competitive edge in against Walmart and Target.

5 Mistakes by Kmart that Collapsed $36 Billion Annual Revenues to Zero

1. Lack of Digital InfrastructureKmart's slow adoption of e-commerce and digital technology left it unprepared to compete in the online retail space.In contrast, Walmart and Target aggressively invested in launching user-friendly websites, mobile apps, and omni-channel initiatives to meet changing consumer preferences.
2. Failure to Innovate Store Formats:Kmart's failure to innovate its store formats led to stagnant sales and declining foot traffic.Meanwhile, their competition experimented with smaller format stores, urban locations, and innovative store layouts to cater to changing consumer preferences.
3. Neglect of Private Label Brands:For the longest time, Kmart neglected private-label brands and failed to offer exclusive products.This limited its scope of driving customer loyalty and margin expansion.
4. Poor Merchandising Decisions:Kmart's merchandising was not in tune with the market relevance and brand positioning.Customers started liking curated product offerings to reflect their tastes and trends, while K-Mart was failing at doing so.
5. Leadership Instability and Strategic Direction:High Talent Attrition at the leadership caused instability and this created problems in executing long-term growth plans, driving innovation, and executing initiatives.

How a 9.7 inches tablet Lost $3.3 Billion for HP?

Did you know that the HP Touchpad is said to be the shortest-lived Product? It only lived for 2 months!!

The idea of HP TouchPad came from the vision of Leo Apotheker, former CEO of HP, who sought to diversify the company's product portfolio and compete with rapidly growing tablet market.

Shifting consumer preferences towards portable screens and the success of competitors like Apple's iPad, pushed HP to leverage its expertise in hardware and software to introduce a compelling tablet offering.

HP TouchPad planned to differentiate itself with its integration of WebOS, an innovative mobile operating system acquired from Palm Inc. Palm Inc. was an American company that specialised in manufacturing Personal Digital Assistants (PDAs). This seamless integration offered a unique user experience characterised by intuitive multitasking, gesture-based navigation, and seamless synchronisation with other WebOS devices.

A Launch That Soon Turned into a PR Nightmare

• The HP TouchPad was released amidst significant anticipation and excitement in July 2011.
• The tablet got strong sales and positive reviews and people appreciated its design and WebOS-integrated features.
• But Sales quickly plateaued as the tablet faced stiff competition from established players like Apple’s iPad.
• To stimulate sales, HP implemented price drops and promotional discounts.
• Significant discounts of up to $100 or more, making the TouchPad more accessible to budget-conscious consumers.
• Despite these, sales failed to meet expectations, and inventory began to pile up, leading to mounting losses for HP.
• HP ceased all Touchpad products in Aug 2011, just 2 months after its Launch.
• Some estimates peg the losses incurred by HP to as high as $3.3 Billion.
• This included the acquisition of Palm Inc. and the discontinuation of WebOS hardware.

3 Challenges that HP Underestimated

1. Limited App Ecosystem: Developers showed reluctance to support the WebOS platform due to its smaller user base compared to iOS and Android.
2. Competitive Landscape: Apple’s iPad and Android-based tablets, dominated the market with their extensive app ecosystems, brand loyalty, and marketing machinery.
3. Hardware Limitations: Product Limitations, including sluggish performance, subpar build quality, and lacklustre battery life, hurt user satisfaction and market perception.

5 Things Startups Can Learn from this $3.3 Billion Fiasco

1. Understand the Competitive Landscape:Thoroughly research and analyse the competitive landscape before launching a new product.Assess the strengths and weaknesses of competitors to identify gaps and opportunities for differentiation.
2. Secure Developer Support and Build Ecosystem:Invest in building a robust developer ecosystem for your platform or product.Actively engage with developers and provide incentives to encourage the creation of apps and services that add value to their product offerings.
3. Timing Is Key:Avoid launching a new product when major players are releasing new offerings.The TouchPad’s launch coincided with the release of Apple’s iPad 2.Startups should time launches to maximize visibility and impact.
4. Effective Marketing:Develop a comprehensive marketing and promotion strategy. Design marketing initiatives that effectively target key demographics, and differentiate their product from competitors.
5. Listen to Customer Feedback:Actively seek and listen to customer feedback to iterate on product features and functionality.Always Prioritize user experience and continuously iterate on user experience and performance.

How Nick Woodman's Turned $250K into $2.9 Billion for GoPro.

Did you know that Nick Woodman sold Shell jewellery out of his van before starting GoPro?

Nick Woodman founded GoPro in 2002, out of his passion for capturing high-quality footage of his Surfing adventures.

He saw a gap in the market due to the lack of suitable cameras for capturing action sports, so he created a portable, durable, and easy-to-use camera that could withstand extreme environments.

Nick started the company with his wife, with $30,000 in savings, in addition, he borrowed $235,000 from his mother and father.

Woodman and his surfing friends all aspired to become professional surfers as 'going pro', hence the name 'GoPro'.

Unique Selling Point

• GoPro’s unique selling point was its rugged and versatile design.
• It was specifically engineered for capturing action-packed moments in extreme environments.
• The camera’s compatibility with a wide range of mounts and accessories enabled users to capture unique angles.

Instant Success Made GoPro a Sports Fan Favorite

• GoPro employed targeted marketing strategies to reach its core audience of outdoor enthusiasts, athletes, and adventure seekers.
• The company sponsored athletes, produced user-generated content, and leveraged social media to showcase the camera’s capabilities.
• Collaborations with extreme sports events, athletes, and content creators.
• Nick came up with its first camera, the HERO 35mm, a waterproof film camera designed for surfers.
• Clocked $350,000 in its first year of sales.
• GoPro raised a total funding of $288 Million over 3 rounds.
• It was responsible for 21.5% of digital camcorder shipments in US in the first half of 2012.
• The company’s revenue expansion has been impressive, with a top line in 2011 of $234.23 Million leading to a 2012 top line of $526.01 Million and finally 2013 revenue of $985.73 million.
• The company went public in 2014 and made a debut at $31.1.

There are no free Lunches, GoPro had to grind initially in the market to create its own Brand Equity and that meant facing tough challenges

GoPro faced stiff competition from established players in the consumer electronics industry including giants like Legrand AV, PowerVision Technology Group, Olympus, Canon, Sony Group and Samsung Electronics

The Brand had to Keep pace with the changing technology landscape and evolving consumer preferences.

GoPro initially struggled with brand perception and pricing concerns and it took them some time to create their brand niche.

5 Strategies that turned $250K into $2.9 Billion

1. Continuous Product Innovation:GoPro continued to innovate with new camera models and enhanced features.The introduction of features such as waterproofing, image stabilisation, and voice control helped GoPro maintain its competitive edge.
2. Product Diversification:GoPro diversified by introducing cameras tailored to different utilities and price points.Strategic partnerships with retailers, and online platforms expanded its global reach and accessibility.
3. Building Brand Community:The brand drove user engagement by encouraging content creation and facilitating the sharing of that content in its community.The GoPro Awards program incentivized users to share their most epic footage, creating an ecosystem of user-generated content.
4. Content Storytelling:Compelling video content featuring extreme sports, wildlife encounters, and everyday adventures was a key part of Go Pro’s brand storytelling and it catapulted it into a Sports fan favourite brand.
5. Embracing Digital Media:Go Pro connected with consumers through various social media channels and that gave them a bump in user engagement and brand awareness.