MBA 5010
Webster university
MBA 5010 Week 5 Assignment (Rev 2)
The weekly assignments are intended to be completed individually. It is important in an online program that you pay careful attention to when it is and is not appropriate to work with peers. Misunderstandings can have significant consequences. By submitting this assignment, you are attesting that you completed this work without assistance from another current or former student of this class. Exceptions can be made for tutors, but only with prior consent from your instructor.
Your answer will be evaluated based on correctness, completeness, and clarity. Be attentive to your writing. You have until midnight CST Sunday to submit both parts of this assignment.
Part A (25 points)
Re-frame each statement as a more appropriate value creation-oriented question that might lead to a marketable opportunity. And then suggest a creative response.
Example – I’ve been playing banjo my whole life. I’d like to quit my job and devote myself to playing.
Response – Is there an untapped market for unique entertainment that a banjo player might fill?
Possible answer – It’d be memorable entertainment at events (e.g. art openings, birthdays, etc) so long as it wasn’t distracting.
Question 1 – I want to have my own company so I can leverage my creative talent at cake decorating.
Respond here
Question 2 – There’s an empty store front across from the grocery. I’ve always dreamed of owning my own karate studio.
Respond here
For each of the following products, articulate the full value proposition. It doesn’t have to be one used by the actual company. So, take whatever license necessary to demonstrate you understand the components of a strong value proposition.
Example – Samsung phones
Value Proposition – Consumers are on the go in a world that also demands ever-increasing connectivity. Samsung phones provide the highest-speed connectivity available with an easy to
use interface all at an affordable price.
Explanation – The problem faced by their market is the perceived need to “keep up” without spending exorbitant amount of money on a phone. By highlighting “highest-speed” and “affordable price”, the message also differentiates the Samsung solution from that of competitors.
Question 3 – Anheuser Busch’s Bud Light
Respond here
Question 4 – Target Stores
Respond here
Question 5 – The new Tesla Truck
Respond here
Part B (25 points)
This week you are to complete a fully complete draft response to the following questions. You are to complete this draft without assistance from either current or former MBA 5010 students. This draft response will be evaluated on completeness and clarity but not graded for content. Next week you’ll be given an opportunity to collaborate with your peers to complete a final response.
In week 1, we analyzed the sharing economy. This week, you’re going to build on the knowledge you gained. Your assignment is to deconstruct the economics underlying AirBnB. Specifically, I want you to answer the following questions:
What resources are being shared?
What is the opportunity cost of the resources “consumed” to facilitate this sharing?
How does this create value for customers?
Does the value created for customers outweigh the opportunity cost of the resources consumed?
Does AirBnB capture a sufficient amount of any value generated to remain a viable business?
The purpose of this question is to provide you an opportunity to demonstrate your understanding of the economics of value creation. So, emphasize this aspect of your answer. Shoot for 500 words, although no one is going to count so long as you’re close.
Respond here
Expert Solution Preview
Introduction:
As a medical professor designing and evaluating assignments for college students, my field of expertise is not in business or economics. However, I understand the importance of critical thinking and problem-solving skills in any profession and will answer the questions to the best of my abilities.
Answer to Question 1:
Original Statement – I want to have my company so I can leverage my creative talent at cake decorating.
Reframed Question – What untapped market exists for unique and creative cake decorating services?
Creative Response – One potential market could be high-end wedding planners who are looking for a unique and personalized touch to their clients’ weddings. A cake decorating service that can create customized, intricate, and visually stunning wedding cakes could stand out in this market.
Answer to Question 2:
Original Statement – There’s an empty store front across from the grocery. I’ve always dreamed of owning my karate studio.
Reframed Question – What is the demand for a karate studio in the neighborhood, and what unique value proposition could be offered to differentiate from competitors?
Creative Response – A marketable opportunity could be a karate studio that focuses on teaching self-defense techniques for women and children, addressing safety concerns in the neighborhood. Marketing efforts could target parents seeking to enroll their children in extracurricular activities that also provide practical life skills.
Answer to Question 3:
Product – Anheuser Busch’s Bud Light
Value Proposition – Bud Light provides a refreshing, light-tasting beer for those seeking a low-calorie option without compromising the taste. Its packaging and marketing strategies appeal to a younger demographic, creating a fun and relaxed drinking experience.
Explanation – Bud Light targets health-conscious consumers who want to enjoy a beer without consuming excessive calories. The value proposition appeals to this segment by emphasizing the light-tasting and refreshing qualities of the beer, positioning it as a go-to option for any social occasion.
Answer to Question 4:
Product – Target Stores
Value Proposition – Target provides a one-stop-shop for affordable and trendy household items, clothing, electronics, and groceries. It offers a long-standing return policy, convenient shopping options, and exclusive designer collaborations to appeal to its target audience.
Explanation – Target appeals to budget-conscious consumers who still want fashionable and convenient shopping experiences. The value proposition highlights affordability and variety, while also providing incentives for loyal customers, such as the REDcard program and exclusive designer collaborations.
Answer to Question 5:
Product – The new Tesla Truck
Value Proposition – The Tesla Truck provides a sustainable, electric vehicle option for those seeking a powerful, versatile, and futuristic driving experience. Its cutting-edge technology, durability, and towing capabilities set it apart from traditional gas-powered trucks.
Explanation – The Tesla Truck targets environmentally-conscious consumers who want a practical and sustainable vehicle that does not sacrifice power or durability. The value proposition emphasizes the truck’s sustainability and advanced technology, providing a futuristic and high-performance option for a previously overlooked market segment.
Answer to Part B:
AirBnB provides a platform for individuals to share their homes, apartments, or rooms for short-term rentals at competitive prices, creating a new model of lodging accommodations. By utilizing existing housing resources, AirBnB effectively shares idle resources to meet the growing demand for affordable and unique travel experiences.
Resources shared include housing, utilities, and personal spaces such as bathrooms and kitchens. The opportunity cost of these resources includes the potential loss of privacy and security for property owners, as well as the time and effort required to maintain their listings and communicate with guests.
The value created for customers includes affordability, unique and authentic travel experiences, more personalized accommodations, and the opportunity to interact with locals better. These benefits outweigh the potential opportunity costs for most customers, creating a strong value proposition.
AirBnB captures a sufficient amount of value through its platform by charging hosts a commission fee on bookings, which ranges from 3 to 5 percent of the overall booking costs. Additionally, the company offers optional services such as cleaning and photography for a fixed fee, further increasing its revenue streams. Despite controversy and regulatory challenges, AirBnB remains a viable business due to its unique value proposition and innovative sharing economy model.
