Question

industry: Macasfree Inc. focuses on the development of computer accessories

For your business idea, what factors you can your team eliminate, reduce, raise, and create. Describe why the factors that you selected for the value curve are important to customers.

For your new business idea, discuss how the learning curve influences your success, the complementary assets that are critical to develop for your venture, and the reputation of your competitors.

include the in-text citations (Links to an external site.)

Answer 1

If iyou ihave iexperience iwith icomputers iand irelated itechnology, iyou’re iwell ion iyour iway ito ibecoming ia isuccessful istartup ifounder. iThere iare iso imany ipotential ismall ibusiness iopportunities iout ithere ifor icomputer iexperts. iSo iif iyou ihave ithe irelevant iexperience, ihere iare i50 ipotential ismall ibusiness iideas ifor itech ientrepreneurs.

1. iiGenuine iineed

iistart iitheir iibusiness iiin, iiin iia iirelated iiindustry, iior iiare iivery iifamiliar iiwith iithe iiproducts, iiservices, iiand iiproblems iithrough iipersonal iiexperience. iiThey iidiscover iia iineed iiand iiverify iiit iithrough iifirsthand iiobservation. iiYou iigenerally iidon’t iidiscover iipressing iineeds iiby iijoining iia iithink iitank, iilearning iihow iito iibrainstorm, iior iisitting iiin iia iiuniversity iiclass.

2. iiCredible iiexperience

Knowing iithe iiproducts, iiservices, iiand iiproblems iiin iian iiindustry iinot iionly iihelps iiyou iiavoid iithe iipitfalls iiof iitrial-and-error iilearning, iibut iiit iialso iigives iiinterested iiparties iithe iiconfidence iithat iiyou’re iithe iiright iiperson iito iibuild iithis iibusiness. iiYour iiexperience iiand iicredibility iiare iivery iiimportant iito iipotential iiteam iimembers, iiinvestors, iicustomers, iisuppliers, iiand iistrategic iipartners. iiIf iiyou iidon’t iihave iithe iiskills iiand iiexperience iito iibuild iiyour iibusiness, iiyou’ll iibe iifighting iian iiuphill iibattle. iiWhen iithis iiis iithe iicase, iiit’s iibest iito iifind iiadvisors, iipartners, iiand iiteam iimembers iiwho iican iifill iiin iithe iigaps iiin iiyour iiskill iiset. iiIn iithe iiend, iiyou iiand iiyour iiteam iiwill iineed iito iihave iithe iiexperience iiand iicredibility iinecessary iito iibuild iiyour iibusiness.

3. iiAdequate iiResources

Many iiwould-be iientrepreneurs iithink iithey iineed iimoney iito iistart iitheir iinew iiventure ii-- iino iimoney, iino iibusiness. iiActually, iisuccessful iientrepreneurs iiuse iia iihost iiof iiother iiresources iito iiget iistarted; iithey iiwork iifrom iihome, iifind iimentors iiand iiadvisors, iiuse iifree iisoftware, iiacquire iiused iiequipment, iibarter iiand iitrade,iiThe iiimportant iithing iiis iito iidetermine iiwhat iiyour iinew iiventure iirequires, iithen iigo iiout iiand iifind iithe iiresources iiyou iineed iito iiget iistarted. iiYou iidon’t iinecessarily iineed iifunding, iibut iiyou iido iineed iiresources.

4. iiBuying iiCustomers

Smart iientrepreneurs iihave iicustomers iicommitted iito iibuying iitheir iiproducts iior iiservices iias iisoon iias iithey iilaunch iitheir iiventures. iiFor iiinstance, iiDave iiTwombly iihad iicustomers iiwaiting iifor iihim iito iilaunch iihis iigarbage iicompany. iiPatrick iiHayden iialready iihad iicustomers iibuying iihis iifirearms iiand iiaccessories. i. iiWhen iiyou iihave iispecific iicustomers iiwho iiare iiwilling iito iibuy iiyour iiproduct iias iisoon iias iiyou iilaunch iiyour iiventure, iiyou iihave iithe iiultimate iivalidation iiof iiyour iisolution, iiimmediate iisales, iiand iiearly iicash iiflow iifrom iiwhich iito iigrow. iiIf iiyou iican’t iido iiit, iiyou iimay iinot iibe iiready iito iigo.

5. iiSound iiBusiness iiModel

Your iibusiness iimodel iiis iithe iiway iiyou’ll iimake iimoney iiin iiyour iiventure. iiIt iiincludes iiyour iisources iiof iirevenue, iipricing, iicosts iiof iigoods iisold, iigross iimargin, iioperating iicosts, iiand iiprofit iimargin ii-- iiessentially iithe iielements iiof iian iiincome iistatement. iiIt iianswers iithe iifollowing iiquestions:

1. Who iiare iimy iivarious iicustomer iigroups? ii(revenue iisources)

2. How iimuch iiwill iithey iipay iifor iimy iiproducts? ii(revenue)

3. What iiare iimy iiexpenses iifor iirunning iithis iibusiness? ii(operating iicosts)

4. After iiall iicosts, iihow iimuch iidoes iithe iibusiness iimake? ii(profit iimargin)

The iiconcept iiof iivalue iicurves iiwas iiintroduced iiin ii1997 iiby iiacademics iiW. iiChan iiKim iiand iiRenée iiMauborgne. iiThey iibelieve iithat iian iieffective iistrategy iineeds iito iihave iithree iimain iifactors:

· A iiclear iifocus.

· Divergence iifrom iithe iicompetition.

· A iicompelling iitag iiline.

The iiValue iiCurve iimodel iiaims iito iifulfil iiall iiof iithese iifactors. iiIt iiprovides iia iiuseful iiframework iifor iicomparing iiyour iistrategy iiagainst iithat iiof iiyour iicompetitors, iiby iiusing iia iisimple iichart. iiThis iihelps iiyou iifocus iisharply iion iithe iithings iithat iidifferentiate iiyou iifrom iiyour iicompetitors, iiand iidevelop iia iiclear iiand iieasily iiexplained iivalue iiproposition.

Advantages iiand iiDisadvantages

Value iicurves iihelp iiyou iito iitest iiwhether iiyour iistrategy iiis iidifferent iienough iifrom iiyour iicompetitors' iito iihave iia iireal iiimpact. iiThey iialso iiprovide iia iiclear, iivisual iirepresentation iiof iiyour iicompetitors' iistrategic iiprofiles iiand iithe iicompetitive iifactors iipresent iiin iiyour iiindustry.

Essentially, iiby iirating iithe iilevel iiat iiwhich iiyour iiorganization iiand iiyour iicompetitors ii"value" iieach iicompetitive iifactor, iiyou iican iiquickly iiidentify iiwhere iiyour iistrategies iidiverge. iiAfter iiall, iitrying iito iigain iia iifoothold iiin iian iiindustry iiby iicopying iia iicompetitor's iistrategy iiwould iilikely iibe iia iifruitless iitask. iiInstead, iigain iia iicompetitive iiedge iiby iimaking iisure iithat iiyour iiproposition iiis iisufficiently iidifferent ii iifrom iitheirs iiin iia iiway iithat iimatters iito iiyour iicustomers ii. iiIf iiit iiisn't, iiyou iimight iiwant iito iithink iiabout iia iichange iiof iidirection.

Value iicurves iican iialso iihelp iiyou iito iiidentify iigaps iiin iithe iimarket, iifor iiexample iiby iiassessing iiwhether iithere iiare iiimportant iicompetitive iifactors iithat iiyou iiand iiyour iicompetitors iihave iiyet iito iiinvest iiin.

One iiof iithe iikey iiadvantages iiof iiusing iivalue iicurves iiis iitheir iisimplicity. iiAnyone iican iiuse iithem iiand iiit's iioften iimuch iieasier iito iirefer iiback iito iithem iiwhen iimaking iikey iidecisions iithan iiit iiis iito iiread iia iilengthy iireport.

But iithe iisimplicity iiof iithe iitool iican iialso iibe iia iidisadvantage, iias iiit iioften iimeans iithat iiother, iiless iitangible iifactors iiof iicompetition, iisuch iias iibrand iiidentity ii, iiare iinot iitaken iiinto iiconsideration. iiSimilarly, iiinternal iisources iiof iivalue ii ii– iithe iivalue iithat iiyour iiorganization iiplaces iion iistaff iitraining iior iion iia iihighly iiefficient iiproduction iiproces

Use iithe iifollowing iisteps iito iiapply iithe iimodel:

· Identify iithe iimain iicompetitive iifactors iiin iiyour iiindustry. iiThese iicould iiinclude iiprice, iicustomer iiservice iior iiquick iidelivery, iifor iiexample.

· Write iithese iialong iithe iihorizontal iiaxis iiof iiyour iigraph.

· Determine iihow iiyou iiand iiyour iicompetitors iiscore iifor iithese iifactors. iiNow iiplot iithese iipoints iion iiyour iigraph iifor iiyourself iiand iiyour iicompetitors, iiand iidraw iilines iito iiconnect iithese iipoints. iiThese iiare iithe iivalue iicurves iifor iiyour iiindustry.

· Now iireview iiyour iimarket iiposition iiagainst iithat iiof iiyour iicompetitors. iiDo iiyou iihave iia iiclear iimarket iiposition? iiIs iiit iilikely iito iimatter iito iiyour iicustomers? iiAnd iiare iithere iiany iigaps iiin iithe iimarket iithat iiyou iicould iiexploit?

A iilearning iicurve iiis iia iiconcept iithat iigraphically iidepicts iithe iirelationship iibetween iithe iicost iiand iioutput iiover iia iidefined iiperiod iiof iitime, iinormally iito iirepresent iithe iirepetitive iitask iiof iian iiemployee iior iiworker. iiThe iilearning iicurve iiwas iifirst iidescribed iiby iipsychologist iiHermann iiEbbinghaus iiin ii1885 iiand iiis iiused iias iia iiway iito iimeasure iiproduction iiefficiency iiand iito iiforecast iicosts. iiThe iilearning iicurve iiis iia iivisual iirepresentation iiof iihow iilong iiit iitakes iito iiacquire iinew iiskills iior iiknowledge.

· In iibusiness, iithe iislope iiof iithe iilearning iicurve iirepresents iithe iirate iiin iiwhich iilearning iinew iiskills iitranslates iiinto iicost iisavings iifor iia iicompany.

· The iisteeper iithe iislope iiof iithe iilearning iicurve, iithe iihigher iithe iicost iisavings iiper iiunit iiof iioutput.

Benefits iiof iiUsing iithe iiLearning iiCurve

Companies iiknow iihow iimuch iian iiemployee iiearns iiper iihour iiand iican iiderive iithe iicost iiof iiproducing iia iisingle iiunit iiof iioutput iibased iion iithe iinumber iiof iihours iineeded. iiA iiwell-placed iiemployee iiwho iiis iiset iiup iifor iisuccess iishould iidecrease iithe iicompany's iicosts iiper iiunit iiof iioutput iiover iitime. iiBusinesses iican iiuse iithe iilearning iicurve iito iiconduct iiproduction iiplanning, iicost iiforecasting, iiand iilogistics iischedules.

The iislope iiof iithe iilearning iicurve iirepresents iithe iirate iiin iiwhich iilearning iitranslates iiinto iicost iisavings iifor iia iicompany. iiThe iisteeper iithe iislope, iithe iihigher iithe iicost iisavings iiper iiunit iiof iioutput. iiThis iistandard iilearning iicurve iiis iiknown iias iithe ii80% iilearning iicurve. iiIt iishows iithat iifor iievery iidoubling iiof iia iicompany's iioutput, iithe iicost iiof iithe iinew iioutput iiis ii80% iiof iithe iiprior iioutput. iiAs iioutput iiincreases, iiit iibecomes iiharder iiand iiharder iito iidouble iia iicompany's iiprevious iioutput, iidepicted iiusing iithe iislope iiof iithe iicurve, iiwhich iimeans iicost iisavings iislow iiover iitime.