Start-up growth strategy

Start-up growth strategy: A case study of Ecobloom

Jansen, Emil (TU Delft Industrial Design Engineering; TU Delft Product Innovatie Management)

van Heur, Rudolf (mentor)
de Lille, Christine (graduation committee)

Delft University of Technology

Strategic Product Design

2018-07-19

This master thesis is written for the master program Strategic Product Design in collaboration with Ecobloom and its members. The main objective was to create a holistic and strategic framework for start-ups to rapidly scale-up, while utilizing Ecobloom as a case study for implementation and evaluation.

Ecobloom is a start-up that focuses on empowering people to grow their own fresh and organic food in a fun, interactive and sustainable way. The proposition that Ecobloom currently develops and will start offering in the near future is often categorized in different ways by various consumer segments. The main cause of this effect is the hybrid characteristic of the product which means it exists out of multiple categories of products. More specifically, it combines an aquarium and indoor garden, also known as aquaponics. Many potential consumers are unfamiliar with the product category which poses challenges, but simultaneously great opportunities. One of the strengths of the thesis’ framework is that it aims to optimize the innovation adoption for ambiguously categorized (hybrid) products. The development of the product was already done for 60% when starting the thesis.

Scaling up a start-up is considered a complex and dynamic phenomenon. To create a comprehensive, yet manageable framework, an important distinction between scaling on an abstract and more concrete dimension has been made. Firstly, a start-up grows as an organization, thereby developing its ‘back-end’. Simultaneously, the ‘front-end’ is considered the actual proposition a start-up offers the market. This thesis takes both dimensions into account and combines the rather abstract and more concrete aspects of scaling to support start-ups to grow fast. During the development of both these frameworks, product development, Kickstarter preparation and other parallel processes were performed for Ecobloom. Interaction effects between these processes are highlighted to enrich the thesis further with valuable insights.

The concrete layer of the thesis takes into account consumer behavior models, attitude formation and its influence on behavior and categorization theory to optimize the innovation adoption by customizing the communicated product positioning per consumer segment. In other words, the (digital) marketing efforts are specifically tailored to the segments’ desired benefits and values of the product. A hybrid model where on- and offline marketing strategies are combined paves the way to reach innovators, early adopters and the early majority. Furthermore, the framework guides start-ups through the iterative method of online proposition validation and provides guidelines on how to scale geographically in a rational and validated manner, thereby decreasing risks and enhancing the chance of success at the moment of market introduction.

The abstract, organizational layer of the framework aims to support start-ups both short- and long- term. Therefore, it first presents a long-term focused framework which reflects adaptability and flexibility. Its future oriented characteristic with continuous exploration prepares start-ups to create and develop new innovations that strategically fit future landscapes, while exploiting current knowledge and businesses. This ambidextrous balance is crucial for start-ups to succeed on the long-term. The second organizational framework demonstrates 12 crucial elements that have been implemented by Ecobloom to succeed on the short-term and bring the first product to market. It is designed to thrive in an entrepreneurial and dynamic context.

start-up growth
Strategy
Case Study
Strategic Design

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Campus only

Student theses

master thesis

© 2018 Emil Jansen