$6 for 26 elastic bands?!
Nov 15th, 2010 by crystallee
How much would you pay for this pack of rubber bands that’s shaped into characters/letters?
The first set of Silly Bandz was sold online in November 2008. The idea of Silly Bandz is to wear them, and trade them with friends. The main target market is towards children, however, people from all age groups purchase this product.
According to Schumpeter’s View of Entrepreneurship, a company is considered to be entrepreneurial if they place an emphasis on innovation. I see that Silly Bandz is an innovated product, it opens new markets, and it also creates a new form of organization. It is definitely an innovative product because it takes a simple elastic band and turns it into a product that’s attractive, and has gimmick. As well, this product opens a new market as it is a brand new product that’s simple, but brings in a lot of sales for the company. The new form of organization is formed around the trend of trading, as the people with the same interest in Silly Bandz would come together and share their passion for this product.
Although it is an innovated product, I feel that this type of product is catered more towards children, especially after hearing some people say that they paid $6 for 26 of these elastic bands. Nevertheless, they are a successful company as they sold over one million of these packages in the last year!