Ten years ago, Linda Turner was in an exercise class and saw a pregnant woman struggling through
Question:
Ten years ago, Linda Turner was in an exercise class and saw a pregnant woman struggling through her routine. After class, Turner asked the woman if she knew of any products that would help her be more comfortable. Because none existed, she began developing a prototype of the BellyBra—a support device designed for women in their third trimester. The BellyBra has tank-top shoulder straps and fits snugly all the way down below the wearer’s enlarged stomach area. Turner experimented with different fabrics, including white lace and CoolMax fabric that pulls heat away from the body.
The BellyBra prototypes tested well with consumers, but because Turner was a stay-at-home mom, she was not able to build a company at that time. She licensed the product to a company called Basic Comfort and became the firm’s first employee. As the success of the BellyBra increased, Turner eventually left on friendly terms to go out on her own. She sold 1,000 units in her first year and 10,000 units in her second year. Some growth rate! She has now expanded her focus from obstetricians and gynecologists to selling on her Internet site (www.bellybra.com).
Linda Turner will face different challenges as her company progresses through the five stages of growth described in this chapter. Describe how you believe her business would change in each stage.
Microeconomics
ISBN: 9781464146978
1st edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson