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DEO - Mini Assignment 3 - Matthias Libot: 7 Domains Framework Analysis and Ranking (#1 Is Most Dangerous)

The document proposes a business "dating" platform that would allow entrepreneurs and others to connect online in order to brainstorm new business ideas and find potential partners. It analyzes this opportunity using the 7 Domains Framework. It determines that the opportunity has high risks due to the team's lack of relevant experience in software development, cybersecurity, and business startups. Additionally, the industry analysis finds high competition from existing professional networking and dating platforms moving into similar spaces. As a result, the document concludes that the team should not pursue this opportunity.

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Matthias Libot
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71 views

DEO - Mini Assignment 3 - Matthias Libot: 7 Domains Framework Analysis and Ranking (#1 Is Most Dangerous)

The document proposes a business "dating" platform that would allow entrepreneurs and others to connect online in order to brainstorm new business ideas and find potential partners. It analyzes this opportunity using the 7 Domains Framework. It determines that the opportunity has high risks due to the team's lack of relevant experience in software development, cybersecurity, and business startups. Additionally, the industry analysis finds high competition from existing professional networking and dating platforms moving into similar spaces. As a result, the document concludes that the team should not pursue this opportunity.

Uploaded by

Matthias Libot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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DEO – Mini Assignment 3 – Matthias Libot

The six most promising opportunities identified for our group are listed below:

 Government E-Document App


 App connecting Elderly people with children to combat loneliness
 Global Warming App where individuals can monitor their own carbon
footprint and make donations or attempts to reduce this
 Professional Network-Dating app (LinkedIn meets Tinder)
 Home prescription delivery
 App where users can offer space in their cars for packages going to a
certain destination

The opportunity I will be evaluating for the purpose of this exercise is the following:

Business “Dating” Platform – As unemployment rates rise sharply due to the COVID-19
epidemic, more and more people from varied industries will have plenty of time to rethink
and shape their career path. These circumstances may lead to new entrepreneurships and
business ideas generation.
Although existing social networks help people connect in different ways, there’s still a gap
between virtual and reality connections. I believe that a business-oriented “dating”
platform, which will be a mix of “LinkedIn” and “Tinder” will allow people to meet new
business partners more casually for a lunch, in order to brainstorm and share different
ideas. Platform can offer different services and support for new business, as well as charge
equity share commissions in the new businesses. Furthermore, this platform would allow
people who have an idea to connect with people that could realise their idea by bringing a
missing toolkit (e.g. entrepreneur looking for someone with app development capabilities.

7 Domains Framework analysis and ranking (#1 is most dangerous)

1) Industry: Macro-analysis

To analyse the industry on a macro perspective, we will employ Porter’s 5 forces:


- Barriers to entry = Low. As we have seen with dating apps there is very little
regulation and many regular new entrants in the market. Furthermore, Bumble has
already developed a business app, and Uber has recently launched a job matching
platform to help gig workers during COVID. They may soon turn to this space and
have much greater resources and know how.
- Buyer Power = low/medium. As there will be hopefully thousands/millions of
users on this app globally, buyer power is relatively low. However, there must be
a good interface/regular updates to keep users happy. Similar to dating apps, the
intention is not to have repeat use, therefore buyer power should be low.
- Supplier Power = Low. It is hard to see who the suppliers would be in this
instance; however, I would anticipate this to be software developers if it is
outsourced. As there are a plethora of software developers, I think they would
not be able to command a premium, meaning their power is low.
- Competition – Medium/High. Bumble business already exists and has a strong
brand name; however, it currently does not target entrepreneurs. They could
easily move into this space. Similarly, there are many job posting websites for
people who want freelancers to complete roles like UX/UI development. Uber
has also recently moved into the job space. These firms all have significantly
more resources and experience. However, competition isn’t at its highest
because there is no direct competitor.
- Substitutes – Medium/High. People can use their personal networks, which is
the traditional method, but this is an improvement. People may be wary about
creating a business with people met on an app. Furthermore, use of job posting
websites, LinkedIn and Bumble biz may also be viable substitutes.
As a result, the macro analysis shows the industry is unattractive.

2) Team: Experience and industry know-how


Critical attributes to the success of this business opportunity is the ability to build a
strong, effective platform that will allow users to find fruitful connections. This is not
dissimilar to Tinder, Bumble or Hinge and therefore they can be used as a base
model for the experience the team needs. In order for these platforms to be
successful, they require a strong UX/UI, robust security (for both the personal data
as well as potential dangerous in-person meets) and a solid matching algorithm.
Our team lacks any software development, cyber-security or matching algorithm
experience. In addition, the team does not have any experience in start-ups or how
to monetise such an app. However, the team does have some experience in UX/UI
design that could be employed to successfully develop this app. Furthermore, there
is a strong project management presence which could effectively manage the
development of the tool.

3) Industry: Micro-analysis
No first-hand experience exists within the team, and in line with the reading it is
therefore difficult to assess the micro attractiveness of the business idea.
Business model – easy to imitate. As with other dating platforms, this will be
easily to imitate. This can be seen by the variety of similar platforms to Tinder.
The first mover advantage exists, however, as seen with Tinder better solutions
have replaced it as the #1 app for dating. Similarly, we will be asking for
equity/fee for connecting people and this is not something that is hard to
imitate. This can easily be undercut by later entrants to the market.
- Economically viable – requires few resources, once the app is developed it
really relies on people connecting and agreeing to meet up. Revenue could be a
stake in equity in the new firms, or a fixed fee when people meet up. However, it
is very difficult to check when this happens and would rely on goodwill.
Therefore, a premium model should be created which increases visibility and the
likelihood of matching with good people. It would also allow you to expand your
radius and location. Safety would be a huge concern for the business, both for
the meet ups and personal data and would need to be considered. It is likely to
be highly profitable if uptake is high, as other dating apps have reported 40%
margins.
4) Team: Connectedness across the value chain
I believe through the meetings we have held as a team that we would be willing to
change course if required, or would be very eager to pursue opportunities when they
arise. However, for the reasons mentioned above, I believe that our expertise and
industry knowledge may inhibit us from identifying opportunities that could improve
the product. Furthermore, the lack of industry knowledge may also prevent us from
identifying any requirement to change course due to headwinds. Therefore, I see this
as a high-risk danger for the project.

5) Team: Business mission, personal aspirations, risk propensity


We haven’t yet discussed the team’s risk appetite or aspirations, and therefore it
is hard to assess what level we see this. Furthermore, it didn’t seem like the team
was hugely invested in this idea, therefore I think the team’s buy in is relatively
low to this concept.

6) Market: Micro Analysis


- Target Segment: people with genuine business ideas who are looking for people
to join their firm, either as founders or employees, to bring a particular skill set
that is missing for the firm to be successful. This would be a new segment that
we believe is currently not addressed by the market. Segments already exist for
free lancers and general job postings, but the budding entrepreneur avenue has
not been tapped.
- Benefits: fast way to connect with people that are looking for similar
opportunities (i.e. those with ideas and those with skill sets). Expands the
traditional network. Has the advantage over other business dating apps that
target traditional employers and advertising job posts. However, flagging this
segment may lead some of the existing players in the business dating apps to
move into this space.
- Growth Potential: Initially run in the UK market, this could easily be expanded to
the European market where people could meet across border to discuss
potential business opportunities. It is a very niche market so we could quickly
capture the majority of the market.

Therefore, I think the target segments and benefits attractiveness is high

7) Market: Macro Analysis


As this is a new market and segment it is quite difficult to anticipate how large the
market is. 216,000 businesses were started in London in 2018, but it is hard to know
how many of those would require collaboration, or who would be interested in the
app. Therefore, we could assume that the initial user base potential would be less
than 200,000. This is less than Bumble, so the revenues would also be substantially
less. In addition, it would be hard to generate revenue and enable equity share in
future businesses that spawn from the app. The market is trending towards more
digital based meet ups, and larger gaps between ideas and software development.
Therefore, I see the market growing.
As a result of the analysis, I do not believe we should pursue this idea. This is mainly
because the team does not have any experience with the industry, and has no
software development skills. In addition, the market does not seem attractive, and
some of the traditional dating app players are moving into the business space.
However, we have targeted a niche and it would be worth doing further analysis on
the potential market size.

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