What Blue Apron needs to do to survive the threat of Amazon – Sharmila Chatterjee

MIT Sloan Senior Lecturer Sharmila Chatterjee

MIT Sloan Senior Lecturer Sharmila Chatterjee

From MarketWatch

For a while, it looked as though Blue Apron was destined to become a culinary juggernaut in the American kitchen.

Founded in 2012, the company APRN, +1.89%  carved out a clever business model by mailing perfectly portioned, pre-packaged ingredients and recipe cards to home cooks in need of handholding. It’s not yet profitable, but growth is impressive. Last year, the company had $795.4 million in 2016 by delivering about 8 million meals per month to customers.

Recently, though, there have been challenges. Shares that the company had hoped to sell between $15 and $17 apiece in June were priced at just $10, hurt in part by Amazon’s AMZN, +0.23%   announced acquisition of Whole Foods WFM, -0.02% earlier that month. They now trade for less than $6, pummeled in part by Amazon’s plans to launch its own meal kits.

The twin revelations about Amazon are no doubt unnerving to Blue Apron’s executive leadership team and investors. And yet, they should also see them as encouraging signs. That Amazon sees so much potential in the industry is proof positive that the meal kit represents a new American staple, and not just—pardon the expression—a flash in our collective pots and pans.

True, Amazon is a formidable rival. And yes, the meal kit business is increasingly crowded. (Current contenders include: Plated, HelloFresh, Purple Carrot, and Sun Basket.) But Blue Apron has an opportunity to differentiate itself. To do so, it must focus on the needs, wants, and values of its target audience: mainly millenials.

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The Time is Now for Women to Step Up, Speak Out and Take Control – Trish Cotter

Trish Cotter, Associate Director, Martin Trust Center for Entrepreneurship

From Bostinno

On this year’s International Women’s Day, I’d like to reflect on how we can encourage women to speak up, be heard, and support each other. The #metoo movement has brought to light countless examples of abuse, mistreatment and harassment, but if there is one positive glimmer out of all that is being shared, it’s a sense of solidarity and empowerment.

I believe that entrepreneurship can be a path to channeling that that energy and creating positive outcomes. The time is now to step up and speak out. The time is now to take control of your own destiny. Stop saying “I’m sorry” and start saying “I’m ready to make a difference.”

I believe that sometimes making a difference is being your own boss. In my role as Director of MIT’s educational accelerator program, delta v, I work every day with both female and male student entrepreneurs. Some of these students have ideas that may change the world someday, but even more important is their sense of pride and accomplishment when they can make decisions that shape their own direction and have a positive impact on other people.

Maybe being an entrepreneur is not for everyone. But, if and when you are in a position to define your own path, you have turned the tables and now have control. You can help not only yourself, but others. Read More »

Despite its woes, GE must stay entrepreneurial – Bill Aulet

MIT Sloan Sr. Lecturer Bill Aulet

MIT Sloan Sr. Lecturer Bill Aulet

From The Boston Globe

When I heard the news that GE is considering breaking itself up into smaller units, I was overcome with sadness. I started my career at IBM in the early 1980s and saw that company brought low, and now a similar scenario is playing out with another venerable firm.

But wait a second, as a professor of entrepreneurship, don’t I want to see a big conglomerate broken up into smaller, more nimble companies that can be more entrepreneurial?

Not in this case. That kind of thinking illustrates a fundamental mistake people make when they contemplate entrepreneurship and existing corporations.

As an entrepreneurship educator, I teach students the mind-set and skills to help them succeed in bringing new, innovative products to market and new ventures into being. But there is a common misunderstanding that entrepreneurship equals startups and that we are preparing our students to join the Silicon Valley depicted on TV dramas. Not so.

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Where investors are missing startup opportunities in America – Joni Cobb and Joseph Hadzima

Joni Cobb, Founder and CEO of Pipeline; Joe Hadzima, Sr. Lecturer, MIT Sloan School of Management

From Entrepreneur

Venture capitalists and other startup investors regularly jet from coast to coast in search of the next big deal, routinely referring to everything in between as “flyover country.” While there has recently been more attention given to the heartland in terms of investing — such as AOL co-founder Steve Case’s new Rise of the Rest fund– there is still undeniably very little awareness of just how strong the entrepreneurial markets are in the middle of the country.

The entrepreneurial activity in the Midwest and Plains states — the middle of America, broadly speaking — may not be as concentrated as the mega-agglomeration economies of California’s Silicon Valley or Boston’s Route 128 region or New York’s quickly expanding borough clusters.

The activity is more spread out and it doesn’t hit you square in the face after leaving the airport, driving to and from appointments, past corporate parks adorned with the signs of famous tech companies and VC firms. But, it’s there in places like Kansas City, St. Louis, Omaha, Minneapolis-St. Paul, Indianapolis, Detroit, Cleveland and other cities with growing clusters of startups involved in a wide range of tech activities.

Some of the startups, like FarmMobile in Overland Park, Kan., are, unsurprisingly, focusing on technology tied to industries traditionally associated with the heartland, such as agriculture and manufacturing. In the case of FarmMobile, it’s developing products to store, share and sell agronomic and manufacturing machine data.

But, there are other young and dynamic companies involved with technologies that have little or nothing to do with agriculture and manufacturing, such as Kansas City’s Zoloz (previously known as EyeVerify), maker of identification management technology for mobile devices. It was the first U.S. company acquired by China’s Alibaba Group.

In America, entrepreneurs are increasingly starting to play to their respective region’s particular economic strengths. Read More »

Trump and transforming capitalism: making our movement see itself – Otto Scharmer

MIT Sloan Sr. Lecturer Otto Scharmer

MIT Sloan Senior Lecturer Otto Scharmer

From Huffington Post

“Trump is America’s wake-up call” I heard a visitor to the United States say the other day. True. Trump’s first year has been a wake-up call heard around the world. But are we really waking up? And who is “we”? And what, if anything, is the new awareness that we are supposed to wake up to?

This column inquires into these questions, and announces a major initiative that blends the news and social media power of HuffPost with the online-to-offline movement-building capacities of MITx u.lab.

Over the past few months, having attended events and grassroots gatherings in various parts of the world, I’m encouraged that such a waking-up and movement building process is well underway. I’ve seen firsthand a new landscape of initiatives focused on transforming the foundations of our economies and our social structures that is emerging. At the same time, social media movements such as #MeToo have shown how quickly latent and necessary changes can be catalyzed in our current moment. While there is still much more structural and systemic work to be done, it’s increasingly clear that as our old economic structures and civilizational forms hit the wall of our planetary limits, a new world is taking shape that focuses on bridging the three major divides of our time: the ecological divide, the social-economic divide, and the spiritual divide.

This awakening process is not only happening in grassroots movements. It’s equally observable among many, particularly younger, leaders working inside our traditional institutions. Everyone knows that we live in a moment of profound disruption. An old order is about to end. And something new is about to be born.

Last week, I was running a session at the European Central Bank in Frankfurt. During the discussion, one of the senior management attendees said: “The problem you describe is not totally new. The destructive dynamics of prejudice, ignorance, hate, and fear have been around for a long time.” And then he asked, “But why is it so much worse today? What is actually different now?”

What a great question. It prompted me to deepen my own sense making.

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