My Unfair Advantage

For this next assignment, I am compiling a list of what I personally see as my venture's strongest strengths, or "unfair advantages". After coming up with the list, I am conducting a VRIN analysis to determine how unique each quality truly is.

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My venture resource list:

1. Bar-code recognition technology

This resource is valuable because it allows Recycle Rewards to recognize a large variety of materials and items. The recognition technology will contain a large library of SKUs and recycling symbols that can be recognized through the iPhone camera. I think that this technology would be on the rarer side and would be hard for other competitors to replicate. Getting the technology patented would prevent competitors from using the same methods as Recycle Rewards.

2. Availability of up-to-date local recycling information

I believe that the easy accessibility of up-to-date local recycling information based on location will be valuable to users. Users can come to Recycle Rewards for all of their recycling needs and information. This may be easier for others to copy, but based on what I have looked up so far, it doesn't seem like an app that compiles local recycling information exists yet.

3. Availability of up-to-date general recycling information

Again, I think that having all of local and general recycling information in one app makes the app a "one stop shop" for recyclers. There are a few apps already existing that provide users with general recycling information. This would be easy to copy and probably isn't that rare of a resource.

4. Users feel good for being environmental

This resource isn't tangible at all and is really subjective. What may make one person feel like they're doing a good deed may not affect another person in the same way. There are many different ways people can feel good about themselves for making environmentally friendly choices so I would say that this resource is very substitutable and not very rare. That being said, I would say that it is a valuable resource that draws users back.

5. Collection of user product consumption data

Recycle Rewards will collect user data and create a library for each user to track their logging patterns. Based on what materials they scan and how frequently they scan similar materials, this data will be used to create a tailored user experience. It can also be sold to create a profit or exchanged for retailer coupons. I think that is a key component of Recycle Rewards and is very valuable to the app and user experience as a whole. Consumer data collection is very common now and is very valuable to companies. The differentiating factor is that Recycle Rewards will have a direct view of what users are consuming, when and how frequently. Although a lot of consumer data is available, I think that Recycle Rewards offers a unique set of metrics that would be important to other companies.

6. Customize reward options based on what items user scans

Based on what users have scanned in the past, predictive intelligence will be used to provide users with a tailored coupon. Predictive intelligence is not new at all, and is even used for targeted ads. This is probably inimitable and pretty common in today's apps.

7. Partnership with charities/organizations

Recycle Rewards wants to partner with charities and organizations to promote environmental protection. This partnership will benefit charities by raising donations and will benefit Recycle Rewards because charities will promote the app. Many apps allow users to donate to charities (like Charity Miles) so this resource is very imitable and substitutable. I think that it adds value to Recycle Rewards, though.

8. Users have option to turn rewards into donations to charities

People love having options, and I believe that allowing users to customize their reward options will keep them using Recycle Rewards. When users hit a certain threshold for scanning items, they will have the option to redeem a reward or to transfer the reward dollar amount to a charity of their choice as a donation. I'm not sure how many incentive-based apps allow users the option to redeem or repurpose their reward amount, but I think that this aspect will be very valuable to my users. This resource is most likely not rare and could easily be copied.

9. Intuitive, easy-to-use app

By providing users with a sleek and functional app design, users will want to use the app more. As technology continues to improve, apps are becoming more functional and better designed. This is a very valuable resource. You may have a great idea for an app, but if you create an app that has severe glitches and low functionality, you will lose users. Many apps exist that are very well designed so this resource is definitely not rare.

10. Minimal ad spam

As an iPhone owner, I have several apps that I use. Many of them feature tons of ads and spam to generate revenue. This comes at a cost though. Many users do not like being bombarded with ads since this is a hindrance to the app experience. I want Recycle Rewards to feature a minimal number of ads. These ads will feature environmental-focused content only. I think that will also be a differentiating factor because I will be offering my app for free with minimal ads. Many apps offer a free version that is overloaded with ads and a paid version that features no ads.

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After analyzing each resource, I have concluded that my most valuable resource is the bar-code scanning technology. Because this technology can be patented, competition would be reduced since other apps could not copy the technology exactly. In order to copy Recycle Rewards, they would have to design and create an entirely new technology to recognize and record bar codes. This increases the value of this resource and makes it rare, inimitable and non-substitutable.