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    Identify a recent entrepreneur who demonstrated a successful harvest strategy or an unsuccessful harvest strategy and explain the factors contributing to failure (if unsuccessful) using the Capital Cow. (need another example besides Martha Stewart and her home solutions)

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    Twitter is a perfect example of a harvest strategy that utilized an initial public offering to gain investment dollars to essentially pay the debt off from previous investors. A harvest strategy essentially uses a methodology of selling a potentially stagnant product or inventory (or services) while cutting costs in other areas to essentially "harvest" what potential income is there. Twitter is reminiscent of the dot.com days, when companies started websites left and right in the hopes of cashing out of a huge initial public offering. Netscape was a wonderful example of this; however the bubble could not last, and eventually there was an enormous correction in the stock market, allowing only a few of the major websites to continue to operate, ideally profitably (Crawford, C., 2016).

    It seems that over the last decade there has been a social media boom, and several companies have taken advantage of the lucrative harvest. Facebook, LinkedIn, and recently Twitter. Facebook and LinkedIn have the advantages of having a huge advertising income streams. LinkedIn also offers various upgrades that companies and individuals can subscribe to which can get quite expensive. Twitter on the other hand is ultimately just a broadcast service (email) that gained popularity due to many famous people "tweeting" approximately 100 characters of an update. Companies would do the same, and news organizations still make claims that such-and-such "tweeted" something. This is great free advertising for the company, which lowers there overhead costs. The problem with Twitter, is that it had no real income streams. The only thing to harvest was the popularity, and the IPO extrapolated that (Koh, T. & Grind, K., 2014).

    Jack Dorsey was the entrepreneur (co-founder) of Twitter, and he clearly capitalized on the cash cow of the IPO, becoming an overnight billionaire. Now that the harvesting is complete, the company seeks to define itself seeking new income streams to become a viable investment for the future (Henricks, M., 1997). There were even recent announcements that they would remove the limit of their small "tweet" character limit to allow for larger posts. Whether or not this will gain popularity is to be determined.


    Crawford, C. 2016. Chron. What is a Harvest Strategy in a Business Plan? Retrieved from http://smallbusiness.chron.com/harvest-strategy-business-plan-52874.html

    Henricks, M. 1997. Entrepreneur. Harvest Time. Retrieved from http://www.entrepreneur.com/article/14594

    Koh, T. & Grind, K. 2014. Wall Street Journal. Twitter CEO Dick Costolo Struggles to Define Vision. Retrieved from http://www.wsj.com/articles/twitter-ceo-dick-costolo-struggles-to-define-vision-1415323289

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