Week 6 Reading Reflection

I found surprising the statement that threat of entry can hold down profitability, not the entry itself. I did not realize if the threat alone of barriers of entry are high, industry profitability can be lower than expected. I always thought entering the market could threaten profits of an industry because who cares if there is a threat if in fact, nothing comes from it.

Most of the article was easy to understand. I think the only part that I needed a better understanding is how a strategist is supposed to focus on the forces and not what Porter states are just factors with regards to industry structure.

One of my questions would be, if strategist focuses only on forces, is it his contention the factors do not matter because we would have overcome the obstacle in other efforts?

I wonder what those industries in which threat of entry is low, what is it they focus on in order to remain relevant for buyers and consumers?

I disagree with eliminating rivals is risky. Yes competition is healthy, but you don't want the market saturated with competition, therefore, if businesses review and find there is a way to gain advantage by mergers or consolidation, then they should move forward. There just needs to be a strong plan in place to ensure the consolidation is successful to the companies involved, but mostly the consumer.

Customer Interviews No. 3

The strategy this time in interviewing customers was to present my business idea and gain feedback (good and bad) regarding the idea. I had the potential customers read over the index card which I included below, to gain their ideas.

I found my idea was not really clearly written. I also had one customer advise I should focus on one area because it was too broad. Suggested I limit to financial piece and if necessary broaden horizon. All agreed there was a need to assist those working families in the low income to middle income range with education of owning a home and needing assistance to ensure affordability. Honestly, I felt this one was a bit tougher because this was now presenting my idea and attempting to gain feedback.

I will probably change my strategy of pursuing relationships with many financial institutions and limit it to a handful and create partnerships so that my customers get the best possible rates for financing. I am not completely sold that I should not also be a home builder, just not sure when that implementation should begin. I may start with apartment rentals and move forward.

Here is the index card and wording.

                                                                  

I feel I could have done just a bit better on presenting my idea after speaking with these kind people who took time out to review and provide as much feedback as they could. They were not all as forthcoming as I would have hoped, but I did get useful information from all and that was there is a need.

Your feed back is most welcomed!

Idea Napkin No. 1

I am an individual with an innate ability to adapt to an ever changing environment. I do not have any artistic talent, but I feel I have a talent in putting others at ease in an uncomfortable environment. I find ways to increase productivity, but yet in the process ensure individuals know they are an integral part of the team. I find ways of getting folks to buy in on some ideas even when they originally resisted. It takes time and patience to successfully pull such off, but I feel it is worth it.

The goal of this business is to ensure all working families aspiring to find a home in a safe environment with top amenities they did not believe affordable, are actually reached. I believe the impact of helping families successfully reach these goals will impact me more internally (personally) due to the joy these families will encounter once they are handed the key to their home.

We see in the news many hard working families are finding it hard to find housing that is affordable for their family and feels safe, welcoming, and personalized at the same time.

 My business TransItHome will assist families in transitioning from their current living conditions to purchasing or renting until readily able to owning that same home. Our main focus is the lower income to middle income family. These families have been forgotten and have always worked hard for their money and wonder why they are priced out of the market. They question what else is needed from them in order to get a home they can call their own and is reasonably priced.

We are more than a home builder using innovated building methods (SIP structural insulated panels). We provide assistance for all facets of home buying from start to finish. We are able to educate the consumer on credit worthiness. There is assistance in applying for mortgages because we have partnerships with over 100 financial institutions. Assistance is available from picking out the lot to customizing finishing touches such as stone counter tops, wall colors, lighting, etc. Encouraging our vendor relationships to extend deep discounts by cutting their profit margins on quality materials has allowed us to assist lower and middle income families to purchase homes they can afford as well as add their personal touches.

I feel the concept is a good one and each piece is a good fit. It may be hard to visualize this concept because the instinct is to think broker, but this business does more than that for these customers. We offer a service that first ensures our customer can create the home they can afford (all costs associated in owning/renting home). We educate via our green initiative to show our new home owners how to produce costs savings for themselves and the planet. I believe as we assist families in getting into their homes, they will in turn market for us. We start one community at a time all the while building a community of families watching over other families. This in turn assists in building a safe environment.