Posted: February 13th, 2023
Poorly Executed Product Launch: Revolights, an innovative bike lighting system, had a bright start when they raised $450K in seed funding from investors and launched their initial product in 2012 with high anticipation. However, potential customers were disappointed after experiencing long wait times for delivery; the shipping process was riddled with problems due to the lack of foresight or preparation by Revolights. This misstep created bad publicity that lingered throughout their business cycle as customers questioned the company’s reliability leading up to their eventual closure two years later in 2014 (McLoughlin & Zabala-Iturriagagoitia). As a result, Revolights lost out on potentially lucrative sales opportunities as well as damaged its reputation which ultimately led to its downfall.
Lacking of Capital To Expand Operations And Broaden Customer Base: Lastly, another major issue limiting Revolight’s success was its inability to secure additional capital when needed most; after having invested heavily into research and development prior launching their first product line they had depleted all available resources required create new products or target larger markets (McLoughlin & Zabala-Iturriagagoitia). Potential investors ultimately decided against investing due risks associated with size market being too small attract enough attention recoup investments made elsewhere thus leaving non other than liquidating assets cover mounting expenses eventually leading bankruptcy court proceedings 2014( McLoughlin & Iturriaggoitia ).
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