The Knot
Industry/ Market
Market Size Potential: When looking at The Knot, as a whole company, one can see that it has the potential to be a major market player for several reasons. Use of the Internet (online services) is increasing from the original one million subscribers AOL had two years ago in 1995, coupled with the 2.7 million page views per month that The Knots World Wide Web Site recorded by July of 2007. Multiple partnerships and a key acquisition of Bridal Search, has added to their brand awareness in turn making them a formidable threat in the wedding industrys market. Registry revenue for The Knot is expected to bring in $840,000 in its first established year, reaching an estimated $35,034,000 by 2001, increasing by 41 percent or greater in four years. The Knots market size potential has a high level of attractiveness, but because of the level of existing and potential competitors it is rated as average score of two. Being Internet based gives The Knot a large advantage over its traditional competitors and will attract the attention of advertisers looking for new avenues.
Venture Growth Rate: The Knot is estimated to grow in revenues at a rate of 38% (18,915,000/49,467,000) from 2000P to 2001P, and 40% when looking at the initial cash flow in comparison to the sum of cash flows. The initial growth rate of The Knot is going to be slow relative to it being a new industry and a new start-up. With revenue projected to reach near $50 million
Market Share (year 3): According to the information provided, the bridal registry business is estimated as being a $17 billion dollar business per year. Since most of the already existing registry companies were only those with large commitments to being “brick and mortar” companies, Lius entrepreneurial vision is to obtain a large piece of this market by moving individuals towards a new way of shopping for wedding