Assignment 23A – Venture Advantage

Assignment 23A – Venture Advantage

1. Startup capital ($): I have some spare cash with which to launch the business.

• Valuable: Yes, very. It lets me start the business in the first place.
• Rare: No, many people have the resources and funding to create a business.
• Inimitable: Yes, anyone with their own money or external funding can have this.
• Non-substitutable: Not really, money is usually an essential part of getting a business off the ground.
1. Absence of Competition: No other company or product offers what Hyperspeed does.
• Valuable: Yes, extremely. No one else can come close to my offerings.
• Rare: Yes, this market is underserved, and I provide a wide range of services.
• Inimitable: For the time being, no.  Another company could copy the idea down the road, it is not protected.
• Non-substitutable: Partially.  There are other music services that offer much less, but they do exist.
2. Social Capital (Industry Experts): I know professionals in the music industry that I could go to for advice or guidance.
• Valuable: Yes, incredibly.  Experts can provide key perception I wouldn’t have had access to otherwise.
• Rare: Kind of. It’s hard to find experts willing to help you, but it’s not unheard of.
• Inimitable: Yes, no one else can gain this knowledge and insight without knowing these people personally like I do.
• Non-substitutable: This could be substituted with sufficient effort and resources, there are many industry experts.
3. Little/No overhead cost for storage: Since this is all my personal equipment, I can store it at my house for free when it’s not out being used.
• Valuable: Definitely, storing equipment off site for the long term can get expensive.
• Rare: Kind of, usually music companies need external storage options.
• Inimitable: This could be imitated by other small businesses.
• Non-substitutable: No, it’s not a unique thing.
4. Personal relationships with other musicians: I know other fellow musicians that I could call on to be service providers.
• Valuable: Very, having connections with peers is a crucial resource to possess.
• Rare: Somewhat, there a lot of musicians around, but few would know as many as I do.
• Inimitable: These relationships are unique, between me and the others and can’t be copied.
• Non-substitutable: This could be switched for another musician/s that have experience and connections.
5. Expertise in the music field: I am an amateur musician, and I know music theory and how to make a song sound good.
• Valuable: Yes, very.  Knowing how everything in your business works on a deep level is incredibly valuable.
• Rare: Yes, a lot of CEOs and business owners don’t know their product on the expert level, but I do.
• Inimitable: Sort of.  Someone who is an industry expert like me could see the same opportunity in this space.
• Non-substitutable: While there are resources to help guide the music learning process, no other person has access to all my personalized knowledge and what I’ve learned.
6. Audience/Fanbase: I have consistent listeners for my projects and people enjoy my new music.
• Valuable: Extremely. This fanbase provides opportunities to get customers.  My music demonstrates what I could offer them.
• Rare: It is somewhat rare, a lot of musicians have fans and supporters, but many who are just starting off don’t yet.
• Inimitable: No, but it is difficult to find a fanbase in the beginning of the music journey.
• Non-substitutable: A fanbase provides a unique opportunity for greater exposure, they show their friends and it grows from there.
7. Human Capital as a Musician and Hobbyist: I am marketing to the exact type of people as myself.
• Valuable: This is valuable because I know how someone like me thinks, and I am in the same situation as potential clients.
• Rare: Yes, CEOs are not typically this similar to their clients, and probably don’t understand them as well.
• Inimitable: This isn’t difficult to copy, but it requires consistent effort and passion for music. 
• Non-substitutable: Making music for fun is very common, but my specific journey and knowledge is unique to me.
8. Human Capital: Education about business logistics: I am gaining specific knowledge on how to start and run a business, giving me an edge over competitors.
• Valuable: Yes, it helps me understand the processes I need to go through and how to streamline the business journey.
• Rare: No, a lot of people have received relevant business education.
• Inimitable: This could be obtained by those with sufficient resources and accessibility to education.
• Non-substitutable: No, a lot of schools offer similar programs and the opportunity to gain the knowledge.
9. Availability of time: Full time college student
• Valuable: Yes. Since I’m a full-time student, I have time to commit to the business.
• Rare: No, a lot of people and full-time students and start a college business.
• Inimitable: No, this is pretty common and nothing unusual.
• Non-substitutable: It’s not a big thing to be a full-time student, but is valuable in the time it provides me

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The VRIN analysis has shown me my top resource is my expertise in the music field.  I intimately know what I’m selling to a deep degree, and have a wealth of music knowledge and experience to offer to customers.  This ability is unique and special, if the leader of the business knows all aspects of it on an expert level, the company can thrive and succeed.