Tshepo Molefe inherited R15 million after his father’s death. He had abundant financial resources to work with and vast freedom to experiment with finding businesses ideas and turning them into business opportunities. He decided to venture into information technology development and established a company called Quantum Leap Tech. This venture has focused on setting up wide area networks (WAN) between different remote offices of businesses that have more than one office throughout Southern Africa. The idea was to set up these WANs in order to create local area networks (LANs) therefore establishing network links between different branches of the same business, allowing them to share organisational information. For the past three years, Quantum Leap Tech has been experiencing difficulties and a decrease in its clients base due to new network developments that are utilising the Internet. These include virtual private networks (VPNs) and cloud computing (an online cloud-based services that is available 24/7 and at a much lower cost than WANs or LANs). Finally, after losing roughly R8 million, Tshepo is wondering whether he should terminate his venture and whether his venture would still be relevant in the following two years.

. Did Tshepo perform his opportunity evaluation and analysis well? What should he have done initially?

Answer rating: 100% (QA)

Answer Lack of Market Research Tshepo didnt seem to conduct comprehensive market research to understand the industry its trends and the competitive la... View the full answer