In late spring 2013, Nakedwines.com (NWC) founder and CEO Rowan Gormley brought his team together to prioritize initiatives and formulate a strategy. NWC's business model involved raising money directly from subscribers via the Internet, using these revenues to fund winemakers around the world, who in turn created new brands, which were consigned to NWC and then sold directly via the Internet to subscribers ('Angels') at a discount. Angels, who represented 95 percent of NWC's customers, received exclusive access to a mobile application to rate and purchase wines. NWC had recently expanded to Australia and the US, reached breakeven, boasted over 100,000 Angels, and expected 200,000 Angels and USD96 million in sales by year's end. Management debated whether to focus on acquiring new customers, retaining customers, or rethinking the mobile app strategy, but equally pressing issues involved building capacity and capital to grow.
