The Kollection is a website created by David Lovin designed to boost surfacing musicians for fans to have easy access to the new artists. It was founded in the summer of 2010, when Lovin stumbled upon the opportunity to create a new, effective way for fans to browse new music. It offers downloads to fans with ease and for free! It is a small venture, consisting of Lovin and six other authors.
Recognizing Opportunities that Create Startups
While browsing new music online, Lovin realized quickly how the blogs seemed to be stuck in the past.
Knowing that he had the skills and training necessary to turn this boring experience into something trending, he decided to jump into making his own blog. Lovin is thereby creating a new benefit idea startup. Strangely enough, Lovin can draw from a few different sources that allowed him to have the courage to launch his own site successfully: his previous work experience with designing websites, his interest in music, and an accidental discovery of the need in the market.
He was browsing sites while on vacation, stumbling upon the realization that he could take this idea and improve it using his former work experience.
Lovin has a great idea and the knowledge needed to make The Kollection a hit. He also has a good team of authors whose concerns are aligned with the business. Nevertheless, his lack of capital hurts his chances of thriving. There is fierce competition, as others begin to easily replicate the idea.
Lovin has inadvertedly gained a bit of notoriety after a copyright issue in 2012, severely handicapping his operations on-site. He is also a college student and holds a part-time job, so he has little time to invest in the company. If Lovin could fully commit himself to this venture, I believe he has the expertise to make The Kollection a household name. But if he does not change the pace of the website soon, it could easily be left in the past as new technology emerges.
The Broad-based Strategy at The Kollection
Lovin is following a differentiation-based strategy, using the uniqueness of his site to build a competitive advantage in the market. While not a cost-based strategy, a differentiation-based strategy may be a better choice for this venture simply for the fact of so little starting capital. Lovin is relying on the superiority over his competition to keep his customers coming back.
Feasibility Analysis for The Kollection and its Promise of Success
Based on my feasibility analysis, I feel that unless drastic changes are made for The Kollection, there is very little promise of growth. With current management and the competition, I dont believe that the industry will stay at the current level long enough for Lovin to revitalize the venture successfully.
Recommendations for the Future of The Kollection
I would recommend that Lovin try to sell The Kollection. He does not have the time nor the capital to boost the site aggressively enough to make a decent profit. He is currently unable to keep merchandise production moving, which was used as his primary source of generating income. He is currently unable to pay his authors, which puts him at risk of losing them and he cannot run the site by himself. He may find someone with the time and resources that can make it a continuing success.
Lovin stumbled into a promising venture promoting new artists using his own improved website. While success came quickly with the new idea, Lovin did not have the resources available to keep the business moving smoothly. With lack of capital and direction, The Kollection began declining rapidly. Where he was bringing in a profit through merchandise and ads, he became unable to afford the production costs and started losing that steady income. Unless something is done to drastically change the direction of The Kollection, such has a new owner, the site will become something of the past.