Although the pitch highlights a variety…

Although the pitch highlights a variety of strengths of the product, I am still wary of the danger that competition in the market place would pose to this start-up company. In analyzing this pitch, I have conducted a brief SWOT analysis (strengths, weaknesses, opportunities and threats). The strengths of this product are numerous: the product is dynamic, accessible, and encourages an ethos of play, which resonates well with educators today. According to the CEO, the target demographic is not people in the realm of education, but rather the general public, but still LittleBits has sold product to over 500 schools. This brings me to my analysis of the weaknesses of the pitch. The weaknesses highlighted in the pitch are that it is open source, and thus subject to competition who can manufacture the product at a lower cost. Couple that with the fact that LittleBits is a startup company with small scale manufacturing and more potential issues with quality control than the competition due to the electrical components, and this venture becomes increasingly questionable as a wise investment. Although I believe the opportunities for this product are great, I believe the threats and weaknesses outweigh the strengths. The most telling statistic which stood out to me was that LittleBits only maintained 15%-20% repeat customers (which could be optimistic), which for a company that stresses repeat customers, just does not do it for me. As an educational venture analyst, given the information I am presented through this pitch, I am OUT.

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