SESSION 3: COLD OPPORTUNITY: Dalhia Mani

THE NILS BERGQVIST STORY

COLD OPPORTUNITY (A)
Take 10 minutes and read this short case
SO WHAT REALLY HAPPENED..
SO WHAT REALLY HAPPENED..
Bergqvist had the sculptors cut out the ICEBAR’s doorway in the shape of an Absolut
bottle. And inside, placed on bar shelves made of ice, was a distinctive row of actual
Absolut vodka bottles
With the help of the Swedish tourist board, ICEHOTEL issued a press release titled
“ICEHOTEL/ICEBAR, -5C, Jukkasjarvi, Lapland” targeting at outlets in the U.S. and
Europe
“Suddenly, the marketing manager of Absolut was phoning me. He asked me, “Are we
involved in that project? Everyone here is asking about it.” I answered, “No. But that is
our wish.” (Nils Bergqvist)
First step in the partnership was a series of ads. Nils condition was that Absolut should
mention Jukkasjarvi and ICEHOTEL by name in the ads.
SO WHAT REALLY HAPPENED..
Bergqvist had the sculptors cut out the ICEBAR’s doorway in the shape of an Absolut bottle. And
inside, placed on bar shelves made of ice, was a distinctive row of actual Absolut vodka bottles
With the help of the Swedish tourist board, ICEHOTEL issued a press release titled
“ICEHOTEL/ICEBAR, -5C, Jukkasjarvi, Lapland” targeting at outlets in the U.S. and Europe
“Suddenly, the marketing manager of Absolut was phoning me. He asked me, “Are we involved in
that project? Everyone here is asking about it.” I answered, “No. But that is our wish.” (Nils
Bergqvist)
First step in the partnership was a series of ads. Nils condition was that Absolut should mention
Jukkasjarvi and ICEHOTEL by name in the ads.
Next Nils wanted to set up an ICEBAR outside of Jukkarsarvi (selling vodka in ice – instead of on
ice – just like in Jukkarsjarvi.
But Absolute balked. No way of knowing whether it would work. “We will support you if you go
ahead with it.”
Why did they balk? They have more resources.
So Nils went ahead. And it was wildly successful, and Absolute came calling again. Partnerships for
Franchises in Tokyo, London and Copenhagen.
NILS TODAY…
Ice from the Torne river became one of Swedish Lapland’s most successful export goods. It cost about one Swedish kroner per ice glass
to ship halfway across the world. “Nothing at all” said Nils. ICEBARS attracted 600 to 1000 clients per night throughout the world,
which Nils noted “is a lot of ice glasses.”
Nils continues with the icehotels with ice sculptures by artists across the world, the ice chapel for couples who want to tie the knot.
Which of these different lines of business do you think is most profitable?
The most stable part of his revenues is from the ice glasses. Also, the product with the highest revenues and profits
Then why even have the restaurant, chapel, ice workshops etc.?
All the way back when Nils decided to quit his engineering job, could he have written a business plan with the above business model?
Why?
All the way back when Nils quit his engineering job, could he have called a bunch of friends and brainstormed and come up with this
business?
How does this differ from our typical view of the entrepreneurial process?
Do all new ventures follow a similar process as the one Nils went through?
TAKEAWAYS FROM COLD OPPORTUNITY
HOW-TOS OF ENTREPRENEURSHIP
5 principles of Effectuation

Bird in Hand Principle - Start with your means. Don't wait for the perfect opportunity. Start
taking action, based on what you have readily available: who you are, what you know, and who you
know.

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HOW-TOS OF ENTREPRENEURSHIP
5 principles of Effectuation

Affordable Loss Principle - Set affordable loss Evaluate opportunities based on whether the
downside is acceptable, rather than on the attractiveness of the predicted upside.

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HOW-TOS OF ENTREPRENEURSHIP
5 principles of Effectuation

Lemonade Principle - Leverage contingencies Embrace surprises that arise from uncertain
situations, remaining flexible rather than tethered to existing goals.

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HOW-TOS OF ENTREPRENEURSHIP
5 principles of Effectuation

Crazy-Quilt Principle - Form partnerships Form partnerships with people and organizations
willing to make a real commitment to jointly creating the future--product, firm, market--with you (self-
selected stakeholders). Don't worry so much about competitive analyses and strategic planning.

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HOW-TOS OF ENTREPRENEURSHIP
5 principles of Effectuation

Pilot in the Plane – Control vs Prediction If you can control something, you don’t need to
predict what the future would look like.

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SARAS SARASVATHI
Dissertation research
Currently at Darden, U of Virginia
Visiting Chair, NSRCEL, IIMB
CAUSAL AND EFFECTUAL LOGIC

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HOW-TOS OF ENTREPRENEURSHIP
5 principles of Effectuation

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