The book I read for my third reading reflection was "The Long Tail: Why the Future of Business is Selling Less of More"
The general theme of this book is that the internet has opened up many new opportunities for business and has, and continues, to change business as we know it. The book states this is because we have access to much more than we ever have and because online stores function so different from normal stores. Online stores are able to have a "long tail" distribution of product sales and still make profit. What this means is that an online store can have a few products that are hits and a ton of products that are niche products and the niche products may only sell a couple of units each, but the combined profit from these low quantity sales of niche product can add up and bring in tons of money. The author argues that some of the most successful companies, like ebay and amazon, make money from the "long tail".
I think this book connected and enhanced what I am learning in ENT3003 by explaining the importance of niche markets in online shopping. this connected and enhanced what I am learning because if I am to create a business venture online I need to realize that not only the best sellers make up the revenue for a successful online business. There is basically infinite shelf space for an online store so it doesn't hurt to keep large amounts of less frequently selling inventory because it adds up. Realizing this strengthens my understanding of online markets as an entrepreneur, therefore connecting and enhancing what I am learning in ENT.
If I had to develop an exercise for class based on this book it would involve finding successful "long tail" online businesses and if possible looking at the statistics behind their sales. For example, looking at how much of their revenue comes from items that don't sell frequently and how much of the revenue does come from items that sell frequently. Another part of this assignment could be to look up how much it profit margin you can make off of niche items vs. hit items.
One of the most surprising things I learned from reading this book was why Wal-Mart is so successful. It almost has the same attraction as an online store - seemingly unlimited choices - but in fact Wal-Mart is far more limited than you'd imagine. While Wal-Mart usually carries more than two of each product it has, it still barely scratches the surface of what is out there. This illusion of unlimited choice (along with low cost) is what makes Wal-Mart so attractive. Wal-Mart is an inspirational business model and really bridges the gap between traditional retail and online shopping.
Thursday, August 4, 2016
Wednesday, August 3, 2016
Venture Concept No. 2
Everything in red is unchanged from my first venture concept. Everything in green is revised for this assignment.
Opportunity
Opportunity
Who has the need? Anyone with a smartphone could have the need. The potential customers can almost be anyone. There is a higher likelihood of middle aged and younger consumers but this doesn’t exclude people who are older. The nature of the need comes from somebody who has a smartphone and a computer or just one or the other. This person may need extra storage for a device, need to transfer files, or want to back up their device. Potential customers are currently solving this need with a similar product that is not as advanced as my product. Some are loyal but from the reviews I read many are not and some of the reviews were from customers who once were loyal and lost respect for the brand after using their product. This opportunity could be huge is marketed right and if the software and support is awesome.
Innovation
The innovation is a memory stick that is able to connect to Android and iPhone smartphones as well as computers. This device will have software that is phone friendly so that the product will be able to transfer files to phones as well as from them. The device can be used to create extra storage space for phones or computers, backup phones and computers, and transfer files from phones or computers to other devices. It works by simply plugging into the desired device, as it will have a lightning port connector, Micro USB connector, and USB 3.0 connector. You simply plug it and from there it is basically drag and drop. To reiterate I would be selling a memory stick with advanced capability. The price of the memory stick would be anywhere in-between $30-$80.
Venture Concept
Customers will buy this product for a number of reasons – easy to use, can create additional memory for your device, can backup your device, can be used to transfer files between devices, and can be used to transfer files to phones which is not easy to do on the iPhone currently. Customers would switch to this product because the other options right now do not always work as they are intended to, are not easy to use, and don’t have all 3 connectors in one device that my product would have. The competitors are companies like Sandisk who have accrued a fair amount of customer loyalty. Even companies that are as established as Sandisk still have some flaws, such as, problems with updates, faulty software, and poor device ergonomics. Everyone loves good packaging, fast shipping, good customer support, and the location of a business if the customer is to go to a store, so I would say all of these things are very important. I would organize a business consisting of a marketing team, software engineers, and a couple other people. I would sell all of them my idea and tell them to get to work!
The Three Minor Elements
1. I think the most important resource for the business would be the software engineers. I think the key to selling this product is to have a product that works better and offers more than the other products out there.
2. I think the next thing for my venture would be to offer an online store option. Something like a subscription for online storage space or some other type of online option that supports my device. A stated amount of "cloud" space could come free with the device and then there could be incremental upgrades if you need, or would like, more space that is given for free. This creates another source of revenue and also opens the opportunity for revenue from advertisements that could be displayed on the cloud webpage and the login information from the consumers (email, phone number, etc...) could be sold to companies as well.
3. I’d like to sell this venture and move on to the next one in the next five years from starting the venture. Hopefully it will earn me enough capital to be able to tackle something even bigger.
I only received one constructive criticism on my first venture concept. Andre Holliday said, "I think that your second minor element strays away from the main idea of your concept. You want something tangible, portable and works with consumer's devices. Your second point seems more cloud based which is a little inconsistent with what you are trying to market. Just a thought." As much as I appreciate Andre's comment I do not agree with him about the idea being inconsistent with my product. The point of my product is mainly to backup or store memory. The product will be able to hold large amounts of memory, but some people will need more space and some people will want to have a backup to the backup in case they lose the device or it gets damaged. This is where the cloud would come in. The idea of the second minor element was to come up with what is next for my product. I don't think that I took too big of a leap in saying the cloud would be the next step. This creates opportunity for more revenue and more options for the consumer.
After rereading my first venture concept I think that I did a great job and didn't need to change anything. However, I did add more detail to the second minor element to make more sense what the next step for my business would be.
Innovation
The innovation is a memory stick that is able to connect to Android and iPhone smartphones as well as computers. This device will have software that is phone friendly so that the product will be able to transfer files to phones as well as from them. The device can be used to create extra storage space for phones or computers, backup phones and computers, and transfer files from phones or computers to other devices. It works by simply plugging into the desired device, as it will have a lightning port connector, Micro USB connector, and USB 3.0 connector. You simply plug it and from there it is basically drag and drop. To reiterate I would be selling a memory stick with advanced capability. The price of the memory stick would be anywhere in-between $30-$80.
Venture Concept
Customers will buy this product for a number of reasons – easy to use, can create additional memory for your device, can backup your device, can be used to transfer files between devices, and can be used to transfer files to phones which is not easy to do on the iPhone currently. Customers would switch to this product because the other options right now do not always work as they are intended to, are not easy to use, and don’t have all 3 connectors in one device that my product would have. The competitors are companies like Sandisk who have accrued a fair amount of customer loyalty. Even companies that are as established as Sandisk still have some flaws, such as, problems with updates, faulty software, and poor device ergonomics. Everyone loves good packaging, fast shipping, good customer support, and the location of a business if the customer is to go to a store, so I would say all of these things are very important. I would organize a business consisting of a marketing team, software engineers, and a couple other people. I would sell all of them my idea and tell them to get to work!
The Three Minor Elements
1. I think the most important resource for the business would be the software engineers. I think the key to selling this product is to have a product that works better and offers more than the other products out there.
2. I think the next thing for my venture would be to offer an online store option. Something like a subscription for online storage space or some other type of online option that supports my device. A stated amount of "cloud" space could come free with the device and then there could be incremental upgrades if you need, or would like, more space that is given for free. This creates another source of revenue and also opens the opportunity for revenue from advertisements that could be displayed on the cloud webpage and the login information from the consumers (email, phone number, etc...) could be sold to companies as well.
3. I’d like to sell this venture and move on to the next one in the next five years from starting the venture. Hopefully it will earn me enough capital to be able to tackle something even bigger.
I only received one constructive criticism on my first venture concept. Andre Holliday said, "I think that your second minor element strays away from the main idea of your concept. You want something tangible, portable and works with consumer's devices. Your second point seems more cloud based which is a little inconsistent with what you are trying to market. Just a thought." As much as I appreciate Andre's comment I do not agree with him about the idea being inconsistent with my product. The point of my product is mainly to backup or store memory. The product will be able to hold large amounts of memory, but some people will need more space and some people will want to have a backup to the backup in case they lose the device or it gets damaged. This is where the cloud would come in. The idea of the second minor element was to come up with what is next for my product. I don't think that I took too big of a leap in saying the cloud would be the next step. This creates opportunity for more revenue and more options for the consumer.
After rereading my first venture concept I think that I did a great job and didn't need to change anything. However, I did add more detail to the second minor element to make more sense what the next step for my business would be.
Final Reflection
I think the most formative experience I had was the elevator pitch assignment. It's something that I might have to do one day and I'm glad I now have some experience.
I think the assignment "My secret sauce" will be something I will remember because I think about the topics of the assignment normally and because the closest people to me were involved in the assignment.
My most joyous assignment during this class was either the reading reflections or the bug list because I enjoyed analyzing the books that I read and who doesn't like complaining sometimes?
I felt most accomplished for the elevator pitches and the first interview assignment I completed.
I saw myself as a entrepreneur before I began this course, but I do feel that I have gained knowledge on what it takes to be an entrepreneur and the characteristics that make up an entrepreneur. I also found the readings to be very helpful and inspiring. I believe I will read more often now on similar topics.
For the future students - Stay on top of the course work, set reminders for extra credit quizzes and other things you might forget if need be, make sure to believe in your ventures because it makes the class fun and easy. I think part of being an entrepreneur is something you are born with - a drive to create things, reinvent or make things better, and solve problems. I think another big part of entrepreneurship is being aware of the world around you and the part you play and have the ability to play in it. Keep these things in mind and if you don't have an entrepreneurial mindset already then maybe it's not for you, but it is something that can be learned if you have a passion for it. Be honest with yourself and do what makes you happy.
I think the assignment "My secret sauce" will be something I will remember because I think about the topics of the assignment normally and because the closest people to me were involved in the assignment.
My most joyous assignment during this class was either the reading reflections or the bug list because I enjoyed analyzing the books that I read and who doesn't like complaining sometimes?
I felt most accomplished for the elevator pitches and the first interview assignment I completed.
I saw myself as a entrepreneur before I began this course, but I do feel that I have gained knowledge on what it takes to be an entrepreneur and the characteristics that make up an entrepreneur. I also found the readings to be very helpful and inspiring. I believe I will read more often now on similar topics.
For the future students - Stay on top of the course work, set reminders for extra credit quizzes and other things you might forget if need be, make sure to believe in your ventures because it makes the class fun and easy. I think part of being an entrepreneur is something you are born with - a drive to create things, reinvent or make things better, and solve problems. I think another big part of entrepreneurship is being aware of the world around you and the part you play and have the ability to play in it. Keep these things in mind and if you don't have an entrepreneurial mindset already then maybe it's not for you, but it is something that can be learned if you have a passion for it. Be honest with yourself and do what makes you happy.
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