Originally Posted by dubest:
“I wouldnt bank on it that its clear to her or to anybody else. I doubt it very much. But we will see in the final what it really is all about. Selling cup cakes is not the same as selling flour. Telling us all about it in advance (and the competition) is not a clever thing. By the time she gets round to it, the boat will have sailed and she will have missed it.
In every business there are always 'gaps'. But not usually enough to warrant making a whole new brand for them. So she will sell the regular things as well as what she perceives are gaps and hope all the customers which I suppose are bakers will come flocking to her since she has everything. As the new boy (or girl) on the block she will have a sustained opposition, meaning they will all gang together to stop her supplies. Unless she can outdo them all she wont get further. It will be very interesting to watch.
She did say I think on TV that she would go ahead with or without LS. We will have to see.”
“I wouldnt bank on it that its clear to her or to anybody else. I doubt it very much. But we will see in the final what it really is all about. Selling cup cakes is not the same as selling flour. Telling us all about it in advance (and the competition) is not a clever thing. By the time she gets round to it, the boat will have sailed and she will have missed it.
In every business there are always 'gaps'. But not usually enough to warrant making a whole new brand for them. So she will sell the regular things as well as what she perceives are gaps and hope all the customers which I suppose are bakers will come flocking to her since she has everything. As the new boy (or girl) on the block she will have a sustained opposition, meaning they will all gang together to stop her supplies. Unless she can outdo them all she wont get further. It will be very interesting to watch.
She did say I think on TV that she would go ahead with or without LS. We will have to see.”
I think it was pretty clear in her own mind in her interview with Mike Soutar, only that she didn't articulate it well in her written plan. It's been pretty obvious from early on that she isn't stupid.
There is definitely scope for her idea to work, although as I've noted I would have concerns over thin profit margins. However, it's very possible that she could set up a large enough business to sustain which is just small enough for the big boys not to deem it worth going after her - plenty of niche businesses thrive like that. Better still, she might become just successful enough that a competitor decides to buy her out - a perfect exit for both Luisa and Sugar (should he invest in her). As part of my job, I've looked at plenty of potential acquisitions in the past of businesses of a similar scale to what Luisa is proposing.
There's plenty of possible scenarios, but no one - not even Luisa - can tell what will happen until she tries. If it was that black and white, it would be easy!



