Mini Project 3

Mini Project 3 - Page |1 Introduction As most business...

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P a g e | 1 Introduction As most business people know, having only a great product is only a small part of your success. The other major part is how that product creates value for the customer. Likewise, effective pricing and product distribution are other big parts of the product’s success. In this report we will further analyze these factors and how they will possibly affect the customers. Value Innovation Looking across the six approaches to value innovation - substitute industries, strategic groups within industries, the chain of buyers, complementary product/service offerings, functional/emotional appeal to customers, and time - we can find ways in which to position our company. Researching our competition, we find that there are a few gaps that may represent good opportunities for us to create our own market share by both creating new space and raising quality while also eliminating any unnecessary features. The first lies in looking across substitute industries and assessing their offerings. One weakness that stands out immediately is the quality of the competitor’s content. We have found that the competition does not reach their potential because they do not offer high enough caliber products. These average documents are what people are really looking for. In this case we use the raise method to create value by “raising” the quality from mediocre to excellent. Secondly, we look across strategic groups in the industry and see a few different trends on price. The strategic groups include those that offer payment for notes via a point or incentive system, those that do not offer incentive program but instead charge a fee for access, and those that do not offer an incentive nor charge a fee. We can innovate in this area by creating a hybrid of these pricing and 1 | P a g e
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P a g e | 2 incentive plans. Students want to be compensated for their content and to do this we pay both for uploading and for people downloading the user’s content. As for the cost, free is not favorable because it puts no perceived value on the content and it also doesn’t give an incentive for uploading. If value is put into something, psychologically people find that it must be worthwhile. Free service can sometimes represent low quality, a characteristic we do not to be associated with. In the case of pricing we will choose to be in the middle of the pack, not charging too much while at the same time not being free. As we look across the chain of buyers to see if there lies an opportunity, we see one customer who is being neglected by our three main competitors, the professors. In this case we will create a new market space to satisfy the needs of professors. To do this we will focus on a collaboration and CRM tool the professors can use to interact with both each other and with their students. This new segment will differentiate us from all competitors and lead to an increased market share in the future. Looking across complementary product and service offerings we can discover another
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Mini Project 3 - Page |1 Introduction As most business...

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