Week 12: Venture Concept No. 1

Opportunity:

Earlier last year, I was diagnosed with a chronic disease called Interstitial Cystitis. The day I got the diagnosis, I was handed a pamphlet of my new diet to follow for the rest of my life. Things to avoid included chocolate, orange juice, tomatoes and their byproducts such as ketchup, alcohol, yogurt, sports drinks such as Gatorade, and cereal just to name a few. As someone with an already picky diet, this practically eliminated half of my options from now on. Enough about me though, an estimated 8-10 million people have Interstitial Cystitis alone. This got me thinking about other dietary restrictions in the world today. Whether for personal, religious, or medical reasons, there are many diets today including gluten free, kosher, diabetic, vegan, vegetarian, and lactose intolerant. Food is a necessity of life and any one of these dietary restrictions limits these options. Because there are so many different types of restrictions, there are no exact figures, but if you add up these 6 segments alone, that’s over 50 million Americans with dietary restrictions, so there is a huge unmet need. Going to the grocery store, by now we know the types of foods we can and cannot eat, but restaurants and premade options are much harder because you need to know the complete list of ingredients to ensure that you can have that type of food. There are no grocery stores specifically designed to meet the needs of people living with dietary restrictions. We are lucky if things are properly labeled, or if there is a section properly identifying our particular segment. This will continue to be an opportunity forever because these diseases aren’t going anywhere. Actually, the numbers are increasing, especially with genetic diseases, so unless a cure is developed, these segments will only continue to grow.

Innovation:

I am proposing an on campus grocery store, similar to the POD that specializes in foods for those people with dietary restrictions. It would be open for extended hours so you could run in for a midnight snack, and be at reduced prices because it is for college students and faculty. Often gluten free flour or cheese that contains no dairy is extremely expensive because they only cater to smaller segments. However, you may not know that common foods also meet these demographics such as Oreos, which are vegan, and Tostitos, which are gluten free. This means that anyone would be able to shop at the market because it would carry “normal” snack food that also happens to fit these needs. It would make a profit because simply a grocery store on campus is long overdue, but also it would fit the needs of many different types of people, so anyone could shop there and appreciate the cheap prices, convenient location, and extended hours.

Venture concept:

I think it is fairly straightforward that nothing exists that specifically addresses the needs of people living with dietary restrictions. Potential customers would not be switching from any other company because there is no current competition. Distribution and business location play a fairly significant role because part of the benefit of this idea is that it is on campus, but it is relatively easy to get supplies to these areas, so it would not be hard to use existing suppliers to get the resources to the market. Like I mentioned before, it would be fairly similar to the POD market, so a small on campus grocery store with about 3 employees to start. These employees would have a nutritional background so they would be able to answer questions about what foods are safe for certain segments, and also specialize in customer service. I think starting small and seeing the popularity is always smarter, just to build your reputation and get the word out, and then expand from there.

Other elements:

As I mentioned in my unfair advantage assignment, I would have to say that my top resource is reputation because it is the combination of numerous elements working together. Intangible resources are harder for competitors to copy and certainly take time to develop. Someone may be able to sell similar products, but adding the welcoming atmosphere, great hours, convenient locations, and experienced staff, all contribute to a reputation that sets my business apart. A positive reputation is essential in any industry, and is a key factor in being the best for years to come.

I think the next thing is just expanding the product line. As new products come out, just being sure to keep up with market trends and listen to customers. As I mentioned on a previous assignment, with technological innovation and genetically modified foods, I think science could potentially develop foods that are safe and delicious for those who can’t eat traditional key ingredients such as regular flour, sugar, or wheat. Seeing what the future holds in terms of science and innovation will be interesting in years to come.

Having a personal connection to this, I am very passionate about finding alternative foods that actually taste good for people living with dietary restrictions. I would love to stick with this and keep a personal stake in the company. Management would be nice, but my skills are in marketing, communication, and customer relations. Wherever this may go, I would want to make sure that I am actively involved and not calling the shots from behind a desk. Possibly partner up with someone whose talents are more administrative so I could run more of the employees and customer feedback, whole they focused on business and company operations.

Week 12: Reading Reflection (Chapter 13)

1). I was most surprised by the section on the “Fab Four” companies. I would definitely consider Apple, Facebook, Google, and Amazon to be the best in each of their respective fields, but it was interesting to get each of their histories and relate them to the entrepreneurship process. Each of these companies have been special since the beginning in terms of creativity and originality, but pointing out what specific strategies and innovations have made them successful was unique.

2). Nothing in particular was confusing in this chapter. A lot of these concepts build off of many things we have learned in the past, so it was fairly straightforward. I would have to say the most complex section would be the entrepreneurial strategy matrix because you are choosing an appropriate strategy based on the existing risk and innovation levels. The author did a good job explaining the concepts in this chapter though.

3). My first question would be why is it important to differentiate between the entrepreneurial and administrative and entrepreneurial point of view? He elaborated on the differences between the two, but it seems to me that working to better one often improves the other as well, so why make the distinction? My second question would be if the author himself ever encountered the growth wall in his career, and how he worked to overcome it? I think many people encounter obstacles in life, both personally and professionally, so what struggles did he face along the way?

4). I partially disagree with “fatal vision #3” when discussing strategic planning. The author states that one should not pursue an unattainable competitive position because if the venture succeeds, competitive advantage cannot be sustained. While I understand where he is going with this, I somewhat disagree in the way it’s worded I guess. I think you should always aim high and allow room for growth, just be smart and realistic, especially in fast-growing industries. I think it doesn’t hurt to have big dreams as long as you don’t get too far ahead of yourself.