An Introduction to Entrepreneurship & Innovation

2nd sem. 2022/2023

Eng. Hadeel Alomari

Homework 3 (5 Points) due to 22nd April 2023

save the file as PDF and upload it INDIVIDUALLY on e-learning platform
Step 3 - Ch 5 - using Porter’s 5 forces model & Competitor Analysis
Instructions: do all 5 requirements
Requirement 1: Section number: _____5-6:30_____________
Group number:_____6________
Students’ names & numbers:___Tariq Banna 20220842
Ammar Afaneh 20201087 Rana Hijjawi 20200563 Rita Hussein 20200659 Abdalrahman
Ashour 20190458 Mohammad Khatib 20190780, rana hijjawi 20200563
_________________

Requirement 2: Name of your proposed company___STYLE ME UP

______________

Requirement 3: Apply the 5 forces on the project idea in the table below
(you can refer to pictures provided after tables for guidance)

Low High threat

threat 2 3✓ 4 5
1
Bargaining
power of
Buyers Reasoning? There are other virtual wardrobe organizers and outfit
(they buy your planner apps available in the market, buyers may have more
product from
you) bargaining power as they have more options to choose from, but
(0.5 point) we can differentiate our app by offering unique features.
Low threat High threat
1 2 3 4✓ 5

Bargaining
power of Reasoning? Ifour app relies on certain suppliers for key features or
Suppliers
(you buy from services, those suppliers may have more bargaining power as we
them what you are dependent on them, another important fact to consider is the
need for your
product ) cost of switching suppliers as it costs us significant time and
(0.5 point) resources.
 Low threat High threat
1 2✓ 3 4 5
Rivalry among
existing firms
(are there many Reasoning? The more competitors there are in the market, the
competitors? How greater the threat of rivalry, and in our case we chose a niche
will that affect
you?) venture or market. So if we focus on our pricing, branding and app
(0.5 point) development the threat would be minor.
Low threat High threat
1 2 3 4 5✓

Threat of Reasoning? There are several factors that could potentially affect
Substitute the threat of substitutes such as the cost (cheaper products),
(what can availability (other virtual wardrobe apps available on the market),
customers buy if
you don’t exist) and quality of substitutes and ease of use of similar apps.
(0.5 point)

Low threat High

1 2✓ 3 4 threat
5

Reasoning? When it comes to new entrants we have to consider the

Threat of
fact that our company has a huge chance of becoming successful
New entrants and global which would attract entrepreneurs to become potential
(is it easy for other competitors, but if we put our customers first and focus on their
companies to copy
you?) loyalty and stay up to date with the trends we can easily negate
(0.5 point) that threat.

Requirement 4: Apply competitor analysis in the table below

Your company Competitor

(or current substitute
consumers are using)

Name STYLE ME UP PINTEREST

Product or service description A service strictly Discovery engine used to find

providing style ideas recipes,styles, home decor and
to users based on more.
specific preferences
and shopping
 patterns as well as
set budgets

Special features Strict to one attribute As explained before it searches

(0.50) providing focus on it ideas around recipes, decor, style
and perfecting it so it has a wider product/service
which is styling line
customers up

Benefits (or solution) to customers
(0.50)
Algorithms tailored wardrobes bought depends on the
specifically to a user’s person’s taste and choices which
taste that helps in could be sometimes poor
building an efficient
and clean wardrobe

Price (0.50) free to download Current substitute requires a visit

to a store, which means money is
spent on transportation or
opportunity cost (time)

Where is the product bought? apple app store or Current substitutes require a
(Website, App, instore, onsight? android’s play store physical visit to a clothing store,
(0.50) pinterest offers the same idea but
not on the same level of features

After sale service After-sales service is

(0.50) an important part of When it comes to our competitors
our services, to check we make sure to differentiate
on our customers and ourAfter-sales than them, our
get feedback, check competitors may not have the same
the level of their
care as we have. They might follow
satisfaction with our
services, and solve an email aftercare with customers
their problems if there but sometimes the customer won’t
are any. get that email so we communicate
directly with our app.

Requirement 5:
save the file as PDF and upload it INDIVIDUALLY on e-learning platform