Funding Sources
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The disadvantage of not having intellectual property is that it can not be traded, it buys them time to build a strong brand and customer base and develop the technology. It can provide temporary monopoly and slow the competitors down. But it has a high cost and can be invented around. Having secrecy and speed as protection is difficult to maintain, and good technology people like luc can have a have a hard time keeping his work a secret. Speed is costly to imitate and give quick profits, but can lead to diminishing return and difficult to sustain. But we believe that since the technology is not yet well-known, GenAppeal have a chance to develop a strong market position with their protection strategy.
Do the entrepreneurs have “freedom to operate” according to a patent search?
Does the financial plan allow for a protection strategy?
The GenAppeals has budgeted a patent attorney, however, they didnt reflected any intention to patent their idea.
Therefore, we assume that GenAppeal needs the attorney to secure the business from possible application for patents from competitors.
Is there a clear development plan that shows timelines in the development of the product and necessary resources to accomplish tasks?
The business plan reflects some stages of GenAppeals development, however, there is no clear plan depicting timelines and milestones. The business plan doesnt reflect necessity of human resources (lab workers) depending on the number of product sold.
B. Value Chain (VAC)
Can GenAppeal easily reach the end user for whom it offers added value?
Since the Business plan envisages fast-mooving market penetration, the possibility to reach as fast as possible a large number of potential clients is of great importance.
There could be some difficulties, if GenAppeal employs the strategy described in the business plan.
The web site should not be considered as the main tool for attract of clients. Using marriage agencies as colaborators is better way to get more members within a short period. These agencies use already established ways of distribution (the databases of marriage agencies) of services.
Does it control or can it acquire the complementary assets needed to reach this end user?
As a necessary prerequisite of a success, the GenAppeal must have such complimentary assets as distribution chain, trade mark, well recognized web page etc.
THe business strategy provides development of own dating web site that, as it is thought, will function as primary source of distribution.
In case the GenAppeal approves its success, a laboratory is planned to deploy in the second phase of company development. At this stage, all lab work will be controlled and performed by the company. The growing number of users will be recruited by an increased number of staff salesmen.
Penetration/Advertizing will be provided by Google/Yahoo context adv.
However, there is no particular person who has any knowledge in the marriage dating industry in their current or future team. They do not have any customer service maintenance strategy or description on that. They can not develop a sound business without a complete product.
Is the downstream industry fragmented or concentrated among a few companies?
The business plan provides that the main goal for GenAppeal is to be positioned as a dating websites. The founders count very little on a cooperation with marriage agencies in compare to whole business.
In the first phase of the company development, the downstream industry will be shared between a biotechnological laboratory (outsorsed lab work) and GenAppeal (distributor and provider of post-sale support).
In the second phase these downstream functions will be integrated and controlled entirely by GenAppeal, though a small part of distribution will be performed through another marriage agencies.
C. Business Model
What does the pricing model look like? Would you follow the same pricing strategy?
To explain GenAppeal pricing model, we reference with the questions from Business 101 (chapter12):
1. Identify the components of the total product concept.
Although GenAppeals business plan describes their websites with two functioning parts: along with ordinary criteria such as salary, education, hair color, sport, etc. which are common on most dating sites, GenAppeal offers a unique advantage to select also those partners that would be also based on biology a good match, whom they, based on smell, would not find repulsive, but more appealing, more attractive, more stable. The business plan does not have anything in detail explaining the development of the ordinary criteria part.
On the aspect of cooperating with marriage agencies, GenAppeal only plan to provide with the biology analysis service.
If GenAppeal claims that their product concept also includes ordinary criteria functions, they need to add the whole developing concept of these functions in their business plan,