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Assignment 23: Your Venture's Unfair Advantage

1. Human capital: I know makeup. This is a simple thing, but it's the most obvious trait I simply need to pull this off. Because I know the beauty industry well and what tools are needed to make makeup application a breeze, I know the functions this mirror should be outfitted with.

  • Valuable: Like I said, I think it's the foundation of all the resources I possess. Knowledge about the industry is extremely valuable if I hope to break into it.
  • Rare: Not rare at all. Many people have knowledge about makeup, but not everyone wants to start a business.
  • Inimitable: Very imitable. Many people possess the knowledge I have.
  • Non-substitutable: I suppose it is since you can't substitute knowledge on the industry with other knowledge. I guess I could hire people who know the industry better than I do, but that would be a waste of resources. 

2. Social capital: I happen to know someone with their own makeup brand whose products are stocked in Riley Rose, a popular makeup store.
  • Valuable: Their connections to Riley Rose could be very valuable to me when looking for retailers to carry my product. Maybe Riley Rose could be one of them!
  • Rare: Somewhat rare. In terms of knowing him, a successful makeup artist, specifically, I'd say it's rare. In terms of knowing someone in the makeup industry in general, I'd say it isn't that rare.
  • Inimitable: Other people could befriend him or make their own connections in the industry, so it is imitable.
  • Non-substitutable: You can't substitute personal relationships with anything else. My connection to him is non-substitutable.
3. Financial capital: If I were to move forward with this business idea, I think my parents would be willing to give me a loan to cover start-up costs.
  • Valuable: We talk a lot about how money isn't everything when it comes to making it as an entrepreneur, but it sure doesn't hurt. I think it's valuable.
  • Rare: Very few people have parents who are well-off enough to help them out financially, and even fewer people have parents who are even willing to help them financially. I think it's somewhat rare.
  • Inimitable: Pretty much everyone can take out a loan, so it's definitely imitable.
  • Non-substitutable: I suppose it could be substituted with a loan from a bank, but that would be more costly and time-consuming.
4. Human capital: I am a multimedia journalist and content creator. This means that I not only have an eye for good design, but I could write my own copy, make my own website, design my own promo material, etc. All of the business' advertising and marketing functions are covered.
  • Valuable: This is so valuable because it means I don't have to hire anyone to perform these functions for me. This saves time and resources and allows me to get my idea off the ground and into the hands of consumers much quicker.
  • Rare: I think my capabilities are very rare. Speaking from experience, it's difficult to find people who are able to work in a variety of media. I'm not a one-trick pony.
  • Inimitable: There are other people who have the same skills as me, but my years of experience combined with my knowledge of the makeup industry makes me unique.
  • Non-substitutable: Like I said, I could just hire people to do these things for me, but that would be another expense to account for.
5. The rise of influencers: This is the age of social media influencers, also known as the age of cheap, effective advertisement. Beauty influencers are especially important and trusted by their followers.
  • Valuable: As far as I know, influencers are important because they have small, loyal followings who trust their recommendations. This replicates the word-of-mouth effect to some degree.
  • Rare: Any brand has access to influencers, so this isn't rare.
  • Inimitable: Again, any brand can send their products to an influencer for them to review, so it is imitable.
  • Non-substitutable: The only substitute is a genuine, personal, word-of-mouth review, which is not marketer-controlled. As far as marketer-controlled personal communication, this is the only option.
6. Social capital: UF is a STEM-heavy school, so I happen to know lots of engineering majors. These connections could come in handy when it comes to engineering my product.
  • Valuable: Very valuable. I definitely have no idea how to build my vision, but I know what capabilities it needs to have. I'll need these people to build my dream.
  • Rare: I'm sure lots of people have friends in STEM, but not everyone has friends at UF, a top STEM school. This is fairly rare.
  • Inimitable: People can make engineering connections just like I can, so it is imitable.
  • Non-substitutable: I can't just will a product design into existence, so I will definitely need engineers on my side to build my mirror. These connections are non-substitutable.
7. Launch opportunity: Beautycon is held every year in New York, Los Angeles, and Tokyo. This con would be a perfect opportunity to launch my business. I could get a booth, sell my product, engage in personal selling, and attract the attention of big names in beauty who speak at the con.
  • Valuable: I think this opportunity is super valuable because it's a perfect way to see how consumers react to my product and get my name out there.
  • Rare: Not all industries have giant cons like this, aside from trade shows. This opportunity is fairly rare.
  • Inimitable: This really is an inimitable launch experience. Getting my target market from all over the globe in one place for a chance to make a great initial impression is inimitable.
  • Non-substitutable: I could launch in a number of different ways, so there are substitutes, but this launch would be the most impactful.
8. Social capital: I know a few makeup artists who I can consult during the product development process. These people can try my mirror prototypes and tell me what needs to be tweaked.
  • Valuable: Considering I wouldn't have to pay them or spend resources searching for people to use for concept testing, it's pretty valuable.
  • Rare: Plenty of people probably know a makeup artist or two, so it's somewhat rare.
  • Inimitable: No one can replicate my unique friendships, but they can make friendships of their own.
  • Non-substitutable: I can't substitute my relationship with a makeup artist for a relationship with a dentist, so I'd say it's non-substitutable.
9. Novel concept: There are mirrors on the market that claim to have bright/powerful lighting, but none that aim to mimic natural sunlight. Since my concept is new, I'd say I have few, if any, competitors.
  • Valuable: This is definitely valuable because it means I'll instantly stand out from the crowd. I don't have to explain why my product is better or different from similar products, I just have to explain what it does and why it's important.
  • Rare: I'd say it's pretty rare for an entirely new concept to enter the market in comparison to all the similar products and services on the market.
  • Inimitable: This is a bit beyond my capabilities, but ideally my technology would be inimitable. At least, it would be higher quality than the best imitation of it.
  • Non-substitutable: So far, there isn't a substitute for my idea other than stepping outside and doing your makeup outdoors. Hopefully, my mirror is a solution to that.
10. Human capital: I'm taking a marketing class right now, and I've learned quite a lot in just one course about business. I can apply this knowledge to selling my mirror.
  • Valuable: Business knowledge is obviously valuable to running a business. Many business owners never took a business course in their lives, so I think even my small amount of knowledge is valuable.
  • Rare: Not rare at all; anyone can read a marketing textbook.
  • Inimitable: No one can imitate my unique store of knowledge, but they can imitate this particular realm of knowledge. So, it's imitable and it's not.
  • Non-substitutable: There is no substitute for business knowledge except business experience, I suppose, but I don't have any of the latter.
Top resource: A seasoned entrepreneur may disagree, but I think #4 is my top resource at the moment. All the others are attainable by other entrepreneurs, but I think my years of training and experience in using multimedia tools are invaluable. One can either learn all of my skills or hire someone else to do them, and both courses of action would come at great cost. I'm going to need a lot of help to pull off my business idea, but at least I know that I can check off many items on my to-do list myself.

Comments

  1. Hey Peyton! This post is so thorough and really gives a good sense of the skills you have to offer. I'm sure that these competencies (especially your vast experience with journalism and content creation) will make the process of building a lot less stressful. Another potential addition to your team is someone who could physically assist you in the process of creating content (Video, audio, editing). Having the tools to build a brand even before you have the product will bring you a captive audience. Great Post!

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