Management HW

Concept Deliverable 2

Part 1: Strength of Business Idea

1. Extend to which the idea: Strong (+1) --- my product can solve problems that no one else can and it has few competitor only nowadays.

· Takes advantage of an environmental trend

· Solves a problem

· Addresses an unfilled gap in the marketplace

2. Timeliness of entry to market: High (+1) --- it’s low barrier to entry and there is not time restriction.

3. Extent to which the idea “adds value” for its buyer or end user: High (+1) --- it is going to be helpful to anyone who use this product and its value is increasing by more people using it.

4. Extent to which the customer is satisfied by competing products that are already available: Moderately satisfied (+0) --- there is a “panic” key for car users and that’s kind of similar to my product in certain ways.

5. Degree to which the idea requires customers to change their basic practices or behaviors: Small to no changes required (+1) --- it just an app that people down load on the cell phone and there is no difficult operation that would apply on the app.

Part 2: Industry-Related Issues

1. Number of competitor: Few (+0) --- however it has the competitors to my product, it’s only the “panic” key has considered as competitor to my product.

2. Stage of industry life cycle: Emergence (+1) --- there is no exactly product that has been operated nowadays.

3. Growth rate of industry: Strong growth (+1) --- this product can be useful to most people.

4. Importance of industry’s products and/or services to customers: Would like to have (+0) --- this product is not necessary to people but it could make people to rely on it.

5. Industry operating margins: Moderate (+0) --- it is a new product to the society so it takes more time to fix bugs and do some arrangement.

Part 3: Target Market and Customer-Related Issues

1. Identification of target market for the proposed new venture: Identified (+1) --- there is nothing similar to my product in today’s society.

2. Ability to create “barriers to entry” for potential competitors: Can create (+1) --- it is low barrier to entry to the market.

3. Purchasing power of customers: Moderate (+0) --- mostly for people who drive the vehicle.

4. Ease of making customer aware of the new product or service: High (+1) --- it is easy to use and convenience to customer’s daily lives.

5. Growth potential of target market: High (+1) --- when people need to drive, they will have the chance to purchase the product.

Part 4: Founder- (or Founders-) Related Issues

1. Founder’s or founders’ experience in the industry: Moderate experience (+0) --- only the “panic” key has similar function but not exact the same.

2. Founder’s or founders’ skills as they relate to the proposed new venture’s product or service: No skills (-1) --- there is nothing other than make the car horn for the “panic” key.

3. Extent of the founder’s or founders’ professional and social networks in the relevant industry: Moderate (+0) --- there are few founders only.

4. Extent to which the proposed new venture meets the founder’s or founders’ personal goals and aspirations: Moderate (+0) --- not everyone would like to proposed a new venture or it is hard to say if it meets founder’s personal goals or not.

5. Likelihood that a team can be put together to launch and grow the new venture: Moderately likely (+0) --- it can be update by what people’s needs are.

Part 5: Financial Issues

1. Initial capital investment: Low (+1) --- my product is just an app that would not cost a lot.

2. Number of revenue drivers (ways in which the company makes money): Moderate Potential (+0) --- my product has more than two functions that would apply to the community.

3. Time to break even: Less than one year (+1) --- it costs less, so it takes less time to break even.

4. Financial performance of similar business: Strong (+1) --- there is no similar business that can compare with my product.

5. Ability to fund initial product (or service) development and/or initial start-up expenses from personal funds or via bootstrapping: Moderate (+0) --- it is doable by only using personal funds because it costs not as much as other products.