BONE BROX: FROM A STARTUP TO AN ESTABLISHED BUSINESS
CASE STUDY SOLUTION
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pl
m
SYNOPSIS
Sa
The German startup company Bone Brox was founded in 2016 by Konrad Kasper Knops and Jin-Bae Woo.
The two Berliners wanted to replace the usual morning coffee with a traditional bone broth. After a quick
launch and their first paying customers, the founders eagerly scaled their product portfolio and entered new
markets. However, with the global COVID-19 pandemic, a changing team structure, and insufficient
revenue, the startup faced significant challenges. Therefore, despite the initial upward trend, the company
n
was still not profitable at the end of 2022.
tio
This case describes the company over a period of six years, from its early startup phase to its established
growth phase, through early challenges, fundamental business development, and strategic decisions along
lu
the way. In December 2022, the company had a net worth of €40,000 and Konrad needed a new business
strategy to survive market and economic pressures and remain competitive.
So
OBJECTIVES
• Define and discuss startup management and understand the key stages of starting a business.
• Identify and evaluate potential, indirect, and direct competitors in highly competitive markets.
• Apply the concept of key resources and capabilities (using the acronym VRIN, for valuable, rare,
inimitable, and non-substitutable) to identify a competitive advantage.
• Define, discuss, and evaluate various strategic alternatives.
• Devise steps for a business to manage a crisis, survive, and thrive.
The Case Solution Starts From page 6
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pl
m
Sa
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tio
ASSIGNMENT QUESTIONS
lu
1. What are the key considerations when starting a business?
So
2. Who are Bone Brox’s main competitors? Evaluate Bone Brox's position in the superfood market and
describe its opportunities. What is Bone Brox’s unique selling proposition (USP) and first-mover
advantage?
3. What are Bone Brox’s key capabilities and resources? How can the startup maintain its competitive
advantage?
4. What are the challenges Bone Brox faces and what are the strategic options Bone Brox should
consider?
5. How should Bone Brox change and adapt to survive at the decision point?
The Case Solution Starts From page 6
,1. What are the key considerations when starting a business?
First steps to consider are: 1
Identify the idea: What problem are you trying to solve?
Research your competition: What industry and market are you trying to address?
Create your business plan: How will you generate revenue? Who is your target audience?
Register and license your business: How will you protect your idea? What legal requirements are there
for the type of business proposed?
Secure funding: How will you finance your business? Who are potential investors?
Develop your product: What is your minimum viable product (MVP)? What tools, equipment, and
resources do you need?
e
Build your team: What skills do you need? How many people will you need?
pl
Market your product: How can or should you enter the market? How will you launch your product and
promote your business?
Scale your business: How do you become profitable? Does your business plan need to be adjusted?
m
How can you achieve growth and sustainability? What additional funding can be obtained?
Sa
In the case of Bone Brox, the answers to these questions are shown in Exhibit -1.
Next, the lecturer can refer to the different funding stages of a startup. The case introduces different forms
of funding and shows how a startup needs to seek external funding and financial support. The lecturer can
introduce the four funding stages of a startup (see Exhibit 2).
n
The initial stage of startup development does not involve external investors. Instead, the startup seeks
tio
lu
So
The Case Solution Starts From page 6
,5. How should Bone Brox change and adapt to survive at the decision point?
Crisis management requires quick responses and actions, which are often difficult to implement, and this
can then cause operational losses and delays. The students might find a crisis management template or
e
“cheat sheet” such as the following useful. It includes managerial steps and reminders.
pl
Develop an action plan (Answer: what? who? how? when? why?).
Quickly engage all stakeholders (employees, partners, etc.) with permanent internal communication.
m
Identify key priorities and strategies.
Develop a clear agenda.
Sa
n
tio
lu
So
The Case Solution Starts From page 6
, EXHIBIT -1: STARTUP BUSINESS ASPECTS FOR BONE BROX
Idea Market Business Plan
To create a sustainable, healthy Superfood segment Broth product
alternative to the morning coffee Competitive consumer goods Collagen powder
market Brox Community
Upselling strategy
Legal Aspects
e
pl
m
EXHIBIT -2: STAGES OF FUNDING STARTUPS
Sa
n
tio
lu
So
The Case Solution Starts From page 6
CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Sa
The German startup company Bone Brox was founded in 2016 by Konrad Kasper Knops and Jin-Bae Woo.
The two Berliners wanted to replace the usual morning coffee with a traditional bone broth. After a quick
launch and their first paying customers, the founders eagerly scaled their product portfolio and entered new
markets. However, with the global COVID-19 pandemic, a changing team structure, and insufficient
revenue, the startup faced significant challenges. Therefore, despite the initial upward trend, the company
n
was still not profitable at the end of 2022.
tio
This case describes the company over a period of six years, from its early startup phase to its established
growth phase, through early challenges, fundamental business development, and strategic decisions along
lu
the way. In December 2022, the company had a net worth of €40,000 and Konrad needed a new business
strategy to survive market and economic pressures and remain competitive.
So
OBJECTIVES
• Define and discuss startup management and understand the key stages of starting a business.
• Identify and evaluate potential, indirect, and direct competitors in highly competitive markets.
• Apply the concept of key resources and capabilities (using the acronym VRIN, for valuable, rare,
inimitable, and non-substitutable) to identify a competitive advantage.
• Define, discuss, and evaluate various strategic alternatives.
• Devise steps for a business to manage a crisis, survive, and thrive.
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
ASSIGNMENT QUESTIONS
lu
1. What are the key considerations when starting a business?
So
2. Who are Bone Brox’s main competitors? Evaluate Bone Brox's position in the superfood market and
describe its opportunities. What is Bone Brox’s unique selling proposition (USP) and first-mover
advantage?
3. What are Bone Brox’s key capabilities and resources? How can the startup maintain its competitive
advantage?
4. What are the challenges Bone Brox faces and what are the strategic options Bone Brox should
consider?
5. How should Bone Brox change and adapt to survive at the decision point?
The Case Solution Starts From page 6
,1. What are the key considerations when starting a business?
First steps to consider are: 1
Identify the idea: What problem are you trying to solve?
Research your competition: What industry and market are you trying to address?
Create your business plan: How will you generate revenue? Who is your target audience?
Register and license your business: How will you protect your idea? What legal requirements are there
for the type of business proposed?
Secure funding: How will you finance your business? Who are potential investors?
Develop your product: What is your minimum viable product (MVP)? What tools, equipment, and
resources do you need?
e
Build your team: What skills do you need? How many people will you need?
pl
Market your product: How can or should you enter the market? How will you launch your product and
promote your business?
Scale your business: How do you become profitable? Does your business plan need to be adjusted?
m
How can you achieve growth and sustainability? What additional funding can be obtained?
Sa
In the case of Bone Brox, the answers to these questions are shown in Exhibit -1.
Next, the lecturer can refer to the different funding stages of a startup. The case introduces different forms
of funding and shows how a startup needs to seek external funding and financial support. The lecturer can
introduce the four funding stages of a startup (see Exhibit 2).
n
The initial stage of startup development does not involve external investors. Instead, the startup seeks
tio
lu
So
The Case Solution Starts From page 6
,5. How should Bone Brox change and adapt to survive at the decision point?
Crisis management requires quick responses and actions, which are often difficult to implement, and this
can then cause operational losses and delays. The students might find a crisis management template or
e
“cheat sheet” such as the following useful. It includes managerial steps and reminders.
pl
Develop an action plan (Answer: what? who? how? when? why?).
Quickly engage all stakeholders (employees, partners, etc.) with permanent internal communication.
m
Identify key priorities and strategies.
Develop a clear agenda.
Sa
n
tio
lu
So
The Case Solution Starts From page 6
, EXHIBIT -1: STARTUP BUSINESS ASPECTS FOR BONE BROX
Idea Market Business Plan
To create a sustainable, healthy Superfood segment Broth product
alternative to the morning coffee Competitive consumer goods Collagen powder
market Brox Community
Upselling strategy
Legal Aspects
e
pl
m
EXHIBIT -2: STAGES OF FUNDING STARTUPS
Sa
n
tio
lu
So
The Case Solution Starts From page 6
