Week 11: Amazon Whisperer

1). My revenue drivers are the convenience of having groceries and fresh produce that fits the needs of certain unmet sectors, specifically those with dietary restrictions such as gluten free, vegan, lactose intolerant, kosher, and diabetic, in an on campus market at a reduced price. Having a store on campus with convenient hours, low prices, and foods not offered at tradition grocery stores are the key resources that make us different.

2). Just as gluten free has become a recent trend in many upscale bakeries, such as cupcake shops, I think the focus in the future could be expanding to be accommodate many different dietary restrictions. Eventually science and technology could potentially create ingredients that both tastes good and are able to be digested by those with certain limitations. For example, creating a wheat substitute that can be digested for those with celiac disease or a sugar that diabetics could process. Genetically modified foods are currently being developed, so I don’t think it’s an impossible task to be developed in the near future.

3). If advances in science ever got us to that point, this would be extremely beneficial because a market such as this could expand and sell other types of foods with these new ingredients. It could also expand the customer base because if it tasted as good as the regular ingredient and was sold at a similar price, others may buy it too. For example, if a man was married to a diabetic, he could buy this sugar and eat it himself as well because he is already buying it for his wife and it tastes just as good.

4). The product I described above does not currently exist yet. It is an ideal model to hopefully be invented in the near future, so I had to loosely interpret this to just be something similar on Amazon. I chose a gluten free flour that is commonly used in baking since we were talking about similar ingredients above. Pamela's Products Gluten Free Artisan Flour Blend currently ranks 4.7 stars on Amazon with 466 customer reviews.

               

5). The customer reviews are very high for this product, averaging at 4.7 stars out of almost 500 reviews. For the negative comments, the principal complaint is that baked goods are sometimes too dense and flavorless compared to similar flours. Similar complaints stated that it is chalky-tasting and can be too crumbly. As far as the positive reviews, 68% gave it 5 stars, so definitely a majority. They like that the flour can be used in almost any recipe and it turns out consistent every time. Many of the reviews even say that they use it as a substitute for regular flour and prefer it.

6). It is flour so there is not much to change for the design. I like the packaging and the reviews are mostly positive, so I would agree that they are doing something right. If I were to change something, their pancake mix has a perfect 5 star rating, so I might adapt some of the successes from other more successful products and see how they could potentially improve this one. I am by no means an expert baker, but if anything, I would thin out the flour slightly too to make it more refined based on customer reviews.

7). For a store that specializes in groceries for those with dietary restrictions, this product would fit perfectly. Someone who is gluten free and wants to bake some muffins could run in, pick up all of their ingredients at our market, and go home to bake without worrying about checking the labels 100 times to see if it’s safe or not. This flour would be a great addition to sell in our market because it further diversifies our product line.

Week 13: Reading Reflection (Chapter 14)

1). The most surprising part for me was the section on Africa and Brazil. As the box mentions, these two regions were formally considered third world countries, and now they are quickly on the rise. Africa’s growth surge was in large part thanks to governmental action, and Brazil is experiencing its greatest economic growth in history. Their rising valuation has placed them both among the world’s most rapidly growing economic regions.

2). The most confusing part for me was the section on the vocabulary common in term sheets. Because we don’t use this terminology in our everyday language, it was a little harder to understand. The differences in the types of rights and the types of preferences can be a little confusing because we are less familiar with these terms.

3). My first question would be how he accumulated the checklist for analyzing a business? Because it encompasses so many different areas and is so long, I would like to know why he chose to include certain concepts and not break it up into e few smaller charts instead? My second question would be if the author himself has ever encountered emotional bias?  I think this is an easy term to apply to business because we tend to overvalue things that we have a personal connection to, so I’d be curious if the author himself has any experience with this.

4). I did not disagree with anything in this chapter. Understanding how to value a business is rather complex, but the author organized the material in a very logical manner and explained each concept well.

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.

Week 11: My Unfair Advantage

1). Selection of groceries/produce- the whole idea is that there are more options to chose from for people living with dietary restrictions, assortment

V-very valuable, basis of entire business idea

R-currently yes (although future demand is likely to increase so likely to be copied by competitors)

I-can be imitated, easy to physically sell a wide variety of products

N-currently has no equivalent, closest is a normal grocery store or farmer’s market

2). Experienced/knowledgeable staff- hire employees with a high degree of familiarity about nutritional content of groceries (for example- if someone who is gluten free can eat a certain type of cereal)

V-yes, can add value by helping customers and answering nutritional questions

R-not extremely rare to have educated employees, but rare in this industry, rare to have workers at a grocery store be able to answer questions about nutritional content

I-could be imitated, but would be difficult

N-somewhat, you could potentially Google certain questions on your Smartphone but extremely beneficial to have a person on site to answer questions instead

3). Convenient location- for college students, having a grocery store on campus is ideal because of the accessibility of the physical location

V-very valuable, on campus and close to target demographic of students

R- sort of, could get location nearby but physical building/store is unique to company

I-can be copied in the sense that you could open next door or across the street

N-has no equivalent

4). Originality of business concept- currently, no grocery store focuses on the needs of people living with dietary restrictions in particular, such as being gluten free, lactose intolerant, vegetarian, or kosher, so these segments are now the emphasis

V-yes, first to the market/industry

R-yes, no one else exists in the market as of now, no competitors yet

I- competitors can imitate the idea, but we will always be first

N- has no equivalent, nothing else provides a similar benefit

5). Customer service- employees are polite and willing to answer questions, possible background in the service industry or communications

V-yes, customer service is important in any industry

R-not extremely rare, but higher quality than most

I-can be imitated to a certain extent, but not duplicated

N-no equivalent or similar service

6). Convenient hours- as college students, we are often hungry for a midnight snack, so staying open late is a major benefit that differentiates us from other grocery stores

V-yes, enables customers to shop whenever is convenient for them

R-yes, not many grocery stores or markets are open late

I-could easily be imitated, but not many people do it

N-no real equivalent, not much else open late except gas stations which is only junk food

7). Community outreach- staying connected with campus and being involved with the community we’re situated within is a major priority

V-yes, adds value, exploits opportunities

R-relatively rare, few competitors are actively involved with their community

I-can be imitated if other firms wanted to copy

N-has no equivalent, nothing else provides the same service

8). Quality of groceries/produce- ensuring there are options for fresh produce, organic fruits and vegetables, and the best brand name snack foods is essential

V-yes, exploit opportunities by providing this particular selection all together

R-not extremely rare, possessed by other competitors

I-can be imitated or copied by competitors

N-similar products of lower quality would be comparable

9). Strong organizational culture- fun workplace atmosphere, high employee morale, low employee turnover

V- very valuable, adds a welcoming environment to an already great store

R-yes, very unique and individualized to the company

I-cannot be copied by competitors, although they may try and imitate certain parts, organizational culture cannot be duplicated

N-no equivalent

10). Reputation- the accumulation of all elements working in harmony, translating the highest quality to each customer that comes into the store

V- extremely valuable, encompasses everything

R-yes, organizational culture and atmosphere is unique

I-yes, cannot easily be copied by competitors

N-has no equivalent, nothing else provides a similar benefit

I would have to say that my top resource is reputation because as I mentioned, it is each of these 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.

This video elaborates on the importance of a good reputation. Although she focuses more on a personal level than a business, the same principles hold true for both. Your actions and the way you conduct yourself on a daily basis form your reputation over time, and you want others to think of you in s positive light whenever they hear your name. Here is a link to the video: https://www.youtube.com/watch?v=HiyZ8sQaafI