1. Localization
a. Valuable:
High, as this is the big thing that differentiates from other big businesses in
competition.
b. Rare:
Medium, as few other competitors have this degree of localization.
c. Inimitable:
Low, a competing website can very easily establish a localized webpage
d. Non-substitutable:
Medium, other stores have different local resources to help
2. No
customer cost
a. Valuable:
High, this is probably the key draw to choosing my service over others.
b. Rare:
High, few other book sellers offer no cost to the customer.
c. Inimitable:
Medium, other websites can run without any cost but it can be difficult to do.
d. Non-substitutable:
Medium, customer cost is hard to imitate in terms of value.
3. Minimal
cost to run
a. Valuable:
Medium, while it provides no customer benefit, this can definitely maximize profit
by minimizing costs.
b. Rare:
Low, most websites do not require much other than a server to run.
c. Inimitable:
Low, any book seller can easily setup a website through third party services.
d. Non-substitutable:
Low, websites and other low cost sites are plentiful.
4. Easy
to market
a. Valuable:
Medium, while good for later profits, this provides no benefit for the
consumer.
b. Rare:
Low, anything localized to a certain area has an increased marketability.
c. Inimitable:
Low, because of the ease in localization, this also means an ease in
marketability.
d. Non-substitutable:
Low, other resources can easily provide marketability.
5. Easy
to access
a. Valuable:
Medium, anyone with a smartphone and access to the internet allows them to
access the content on the website.
b. Rare:
Low, any website on the internet will have the same degree of accessibility.
c. Inimitable:
Low, just by setting up a website access is easy to all.
d. Non-substitutable:
Medium, other resources can provide accessibility but not to the extent of web
communication.
6. Readily
available community
a. Valuable:
High, there is already people who want to trade and sell books without easy
access to do so.
b. Rare:
Low, other communities with various needs also exist.
c. Inimitable:
Low, any others who create a similar service will also have access to the same
community.
d. Non-substitutable:
Low, creating a community is key to any successful website.
7. Accessible
resources for startup
a. Valuable:
Low, elimination of cost would not provide that much in terms of startup
access.
b. Rare:
Low, any website would also have easy access to startup resources.
c. Inimitable:
Low, every website is easy to startup.
d. Non-substitutable:
Medium, other services could have potentially easy startup potential.
8. Potential
for rapid expansion
a. Valuable:
High, if the website takes off, then any other are is a potential new expansion
zone.
b. Rare:
Low, many other startups would have a similar potential for expansion.
c. Inimitable:
Medium, for the expansion to take place another website would need to be
successful.
d. Non-substitutable:
Low, many other services have the potential for rapid expansion.
9. Cross
regional access after expansion
a. Valuable:
Medium, this will expand the services offered to a larger area.
b. Rare:
Low, cross regional product differentiation is common in growing businesses.
c. Inimitable:
Low, many other services offer cross regional access at any time.
d. Non-substitutable:
Low, other services could provide cross regional localization form the start.
10. Strong
word of mouth spread
a. Valuable:
High, word of mouth would be essential to growing the website.
b. Rare:
Low, many other localized businesses often have a large degree of word of mouth
spreading.
c. Inimitable:
Low, other local businesses often have word of mouth as the primary marketing
technique.
d. Non-substitutable:
Low, other marketing techniques could provide the same benefit.
My top resource would be the zero
customer cost as it provides a benefit to the customer and differentiates the
website from other services in that also provide books in the local Gainesville
area.
Hey Alan, after reading your VRIN analysis, I would also add that the "strong word of mouth" resource is a second top resource to your venture. It could save on marketing costs. I mean, the fact that it is based on the Gainesville student community helps in regards to available resources and marketing advantages. The "no customer cost" is an interesting resource since that is what differentiates it from the other competitors.
ReplyDeleteHey Alan. You have a very well-written VRIN analysis. It seems that you have an appropriate background for this idea to take off and be successful. My question is how do you plan to profit off this idea by offering no customer cost? Is it a marketing tactic that you are offering for a short deal? Having no customer cost just to define the brand seems a bit rash to me.
ReplyDeleteIt seems that a lot of your advantages, including your biggest one, are cost related. I think this is very good considering how much of an issue finances are when getting business ideas started. It isn't common that people can have low costs on anything, let alone zero costs. It is wise that you are taking advantage of this opportunity and doing what you can to work with what you have. I hope these things pay off for you as much as they seem like they will!
ReplyDeleteAlan,
ReplyDeleteI like a lot of your resources an dhow the venture is set up. You would have low investment costs. Setting up the website may be the hardest part along with advertising. Keeping costs low at the beginning will allow you to begin to make profit and as the company grows it should increase. As a start up it seems like a great entry into the market. I think the zero customer cost is a bonus and would allow people to start using your resource immediately even if you do not have the advertising set up.
Hey Alan, I think that your resources are extremely valuable in every way to your venture and well thought out. Not only is this idea feasible, but it is a great idea and I hope you actually do plan on getting it up and running. It is clear that investment would not be much of a problem since it is online and would not require many resources whatsoever. Great idea and good insight!
ReplyDeleteHi Alan,
ReplyDeleteI think you pointed out a lot of great advantages that you have for your business. A lot of them have to do with the product and not your own personal capital, like your network. I think your advantages are great-- but just wanted to point out how many more advantages you have if you include things like your network, personal characteristics etc. Great job and keep up the good work!