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If Red Ants Pants had had investors looking for a quick return, how might that have...

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bartica | Student | (Level 2) eNoter

Posted April 15, 2013 at 12:05 AM via web

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If Red Ants Pants had had investors looking for a quick return, how might that have influenced Calhoun's decision to continue functioning as her own retail channel, rather than going through established retailers?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted April 15, 2013 at 12:15 AM (Answer #1)

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If Red Ants Pants had investors who were looking for a quick return, Sarah Calhoun would likely have had to go through established retailers rather than functioning as her own retailer.  This is because using an established retailer would have been a more certain way of getting pants sold.

Investors who are looking for a quick return are typically not interested in building a company with an eye to the future.  They will prefer to get as much as they can in the short term rather than hoping to make much more in the long term.  Using established retailers would have been a way for Red Ants Pants to provide a return in the short term.  That way, the pants would have gotten more exposure than they would have if Calhoun marketed them herself.  It might not have been as good for Red Ants Pants in the long term because Calhoun would have had much less control over the product and its marketing.  However, it would have been good in the short term. 

Therefore, having investors interested in quick returns would likely have pushed Calhoun away from acting as her own retail channel. 

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