Is MyAlert a good business idea? Why?
After reading and analyzing the case we are able to do the next SWOT analysis for the company of the situation in 1999:
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STRENGTHS
First to play.
Strategic partners.
Customized service.
Innovative service.
Experienced manager.
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OPORTUNITIES
Total new market.
New business opportunities.
Emerging market.
Is already working in another channel.
WEAKNESESS
High technology cost.
Low experience as a team.
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THREATS
New competitors.
Fast and dynamic environment.
As we can see Mr. Jorge Mata had strong arguments to believe in his idea:
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Was the first to see the business opportunity in the mobile alerts.
The idea was already working well in another channel (Internet).
The mobile phone market was growing very quickly.
They offered a wide range and tailor-made services.
Besides as MyAlert will be the first in the market, the technology investment could became a strength and turn it in an entry barrier, thing that actually happened.
For these reasons we can assert that MyAlert was a good business idea.
Which is the competitive advantage of MyAlert when it is launched? How the competitive advantage and business model evolves? Why? Is it sustainable?
The competitive advantage of MyAlert at the begging was its own technological platform (MAGO). The platform was Valuable because was the core of the business also it was Inimitable, Rareness and Original due to they developed it from the scratch and was the first in the market specifically designed for its business model.
Content
Production
Design &
Packaging
1- Corporate Customers
Distribution
Sales
2- Other Customers
Provision of Infrastructure (Mobile Operators)
Looking at the value chain of MyAlet we can see highlight in red their core activity, their platform allowed them to distribute the content throw the network to the final customers, the key was that the platform has a great