Comment and ask a question that extends this discussion?

1.What are the challenges of entering a very crowded food market where there is NO IP protection to create barriers to entry?

First, it is very hard to compete with existing market brands. It is challenging to attract the market trying to manifest a new product. Second, customers always prefer to stick to well-established brands, it takes a certain conviction in the market for the customers to alter their opinions and preferences. Third, the startups require huge capital investments to establish in a very crowded food market with no IP protection/entry barriers. Also, to help with competitors from mimicking their products.

2.What would you do differently if you encountered Stacey's issues in building her business?

Initially, Stacy had not registered her firm with the health department and later opened a takeout place in partnership with Kevin with no prior capital investment plan and research about the current market situation (recession period). If I was in Staceys place, I would have made a prior plan with an actual execution plan including empirical values, calculations, loss/profit charts, and inventory management after figuring out a proper recipe for the chicken salad. Although she had no prior plans for a huge business, she did not do the planning post-shutdown of her initial business from home kitchen. When Mr. and Mrs. asked for a 51 percent share for franchising the brand, I would have stood with Kevins decision rather than agreeing to sell out. Finally, I would have changed the names on the menu, they were poorly designated.