Do I want to be the CEO of my own company, or will I get more satisfaction walking past every store, seeing my own ideas brought to life with a kind of execution I am incapable of delivering on my own? Ultimately, I need to decide if I want to give all my chips to someone else to bet for me, or give it a go myself (1/2) The unanimous opinion in the syndi - A4 is that Vicki Tsai should not take up the current acquisition offer due to the below reasons: POTENTIAL FOR GROWTH ● Her idea of selling high-end products based on 200 yrs old Geisha beauty techniques has potential to grow as there is a growing interest in East Asian Beauty Markets; evidenced by acquisitions of various Asian brands by giants like L’Oreal. ● Growing pluralism in beauty standards would help in selling Asian concepts of skincare and beauty ● There is a growing demand for chemical-free beauty products, and TATCHA can target this segment for growth. BRAND POSITIONING ● Currently, there is only one product - aburatorigami available under the brand TATCHA, hence the brand and product positioning is not very strong in the minds of the customer. ● The inspiration for the products was ancient Japanese beauty aesthetics and her desire to share the Geisha legacy with the world ● If an acquisition happened at this stage the acquiring company may opt for mass-market positioning, hence diluting the values of TATCHA. Do I want to be the CEO of my own company, or will I get more satisfaction walking past every store, seeing my own ideas brought to life with a kind of execution I am incapable of delivering on my own? Ultimately, I need to decide if I want to give all my chips to someone else to bet for me, or give it a go myself [2/2] CONVICTION ● The growth of the idea for TATCHA was born out of Vicki’s own struggles with skin care and her concern of chemicals present in it. ● She has invested her savings along with maxing out her credit cards, putting her in debt. ● Hence, we can say that her conviction regarding TATCHA is very high , which would be very difﬁcult to replicate and maintain by an acquirer. Which part of the value chain would you use to create value for customers? MARKETING Improve procurement of raw materials through more reliable sources that will be able to maintain continuous supply Scale packing and shipping operations use low cost labor to utilize Tsai’s time to focus on R&D of new products SCALING OPERATIONS Current marketing strategy is targeted towards make up artists and fashionistas through magazines. Tsai should focus on marketing the product to larger audience through other channels such as email, web, and print. Build loyal customer base through targeted loyalty programmes Build promotional alliances for joint marketing with distributors and retailers based on incentive structures WHAT SUGGESTIONS DO YOU HAVE FOR THE COMPANY? FUNDING Vicki can try and reach out to VC firms, Angel Investors to help resolve the fundings issues that she is facing. She can leverage her Alum network for access to funding POSITIONING She needs to concentrate on differentiating her product for the consumers hence she can try and generate word of mouth buzz by targeting celebs and influencers and fashion week PEOPLE & PROCESS Tatsha needs to find alternate sources to procure Aburatorigami to scale their business Vicki should look to onboard a member with cosmetic product specialization CUSTOMERS Promote customer growth by initiating loyalty programs hype/hoard effect. Leverage relationship with 200 retailers.