What's Next?
Existing market: The next move for us for our venture is to start making our controllers and to find a production facility that is affordable and spacious enough.
After interviewing three customers who are already part of our identified market, when asked what we should do that we aren't planning on doing, all three people told me that production is the most important thing to focus on which is exactly what I said. Production is the most important part of our venture because this is when the actual product is made. This is also where the profit margins either become big or slim.
In terms of growing in our existing market, the only way to grow more would be to increase production by hiring more people and creating more facilities. Also, we could spend more money on advertising so that we reach more people.
New market: A new market we could target is current gaming companies like Sony and Microsoft instead of targeting the consumer directly. This way, we could sell to them our entire product or just integrate our cooling technology into their current systems to make them better. This would reduce production costs for us and increase our profits. After interviewing two people, it is evident that the cooling technology mixed with established technology from a reputable company is a recipe for success.
I learned that the new market, targeting other companies rather than consumers, is actually very profitable because costs decrease. What surprised me most is how easily other companies could integrate our technology into their systems. This new market is as attractive if not more than our existing market.
Reed,
ReplyDeleteI like your new market idea. If you partnered up with Sony and Microsoft, I agree that it would cut down your production costs a lot. It would even cut down on risks, too. The reason is because Sony and Microsoft would be sharing the risks, too. You will even get more of a customer base if you did that. Customers who own a PlayStation or Xbox will more than likely buy from Microsoft or Sony, because it’s reputable to them. This new market idea would help get your product and company out there to gamers.
Reed,I think it is smart you have thought about Microsoft and Sony implementing your product into their current gaming controllers. When you have a company as large as both of these promoting your product then it is going to grow at a much faster rate. You also will increase your finances quickly and open the door for other companies to come along and want to buy in to your idea. I think this new market may be a better play then trying to go directly to the consumer. Nice job!
ReplyDeleteReed,
ReplyDeleteAlthough many entrepreneurs fear selling their product to large corporations like Microsoft and Sony, in most cases, it's the best path for their business. Licensing your product to larger, more-reputable businesses will likely help your business more so than if you attempted selling them on your own. If you're in business with large companies like these, they may introduce opportunities for your "cooling system" that you would've never thought of. These companies have a lot of power, money, technology, and most importantly, unprecedented innovation. Your interviewees were absolutely correct about implementing the next level to your business -- production.
Reed, going after the ig dogs in the gaming world could make yo very well off but they could also take the idea and diminish yours. I would be careful with that approach and make as much as you can to start with and then possibly sell the rights over for a big chunk of change, best of luck.
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