Introduction
It generates high income through in-app purchases (IAP) and applies a price discrimination strategy to enable it to charge customers above the marginal cost. The business models target a large client base of online or smartphone mobile users giving them games for free. Candy crash creates short, addictive candy-puzzles and it generates points that help users move to the subsequent levels that have robust features helping it reap the highest profits in the mobile gaming industry (Schaltegger, Lüdeke-Freund & Hansen, 2016).
Components of Candy Crush’s value proposition
The three components include measurable business objectives, metrics, and movement. Candy crush focused on measurable business goals by targeting the majority of online and smartphone users. The business model has combined commodification of virtual items, connectivity, user data, attention, and play. The game has managed to attract a third of the Facebook users hence popularizing it online.
It requires users to invite three of their friends to help them move to different checkpoints. Candy crush has maximized on the movement value proposition by improving the services offered (Schaltegger et al., 2016). It is a free premium model that has helped it to increase sales, decrease costs incurred by the users, and improves efficiency by making it simple. The metrics value proposition for the candy crush is in its ability that users in satisfying their addiction to crushing candies and beat certain levels before their friends.
The majority of users are different from most computer games due to the aspect of social media sharing. Candy crush allows the users to share with their social media friends about the levels, bonuses, and lives acquired while playing. They can interact by sharing rewards and lives in case of loss enabling them to continue playing. The users hence are more social and have a sense of community and hence make them different from than most computer games.
Gesture Logic
Three value propositions of their value proposition are optimizing the workout of the targeted customers, intelligence, and revolutionizing fitness. The first value aimed at indicating the benefits that the users will accrue after using the product. They include helping the customers optimize the workout program while reducing the chances of getting injuries. Gesture Logic company has indicated that it has integrated biosignal monitoring technology in its fitness wearables that have the capacity to detect lactic acid, fatigue, calories, and heart rate.
The biodata gathered by the device is meant to notify the user of potential risk during work-out processes. Revolutionizing of fitness is the second value proposition of the company. It has applied scientific knowledge in different ways to help users improve workout and avoid injuries. Lastly is the fitness intelligence value proposition. The company has employed fitness technology that is new in the wearables market using intelligent sensing and feedbacks (Schaltegger et al., 2016).
I would as a company founder know whether the value proposition is strong enough to penetrate the market through understanding the current and unmet needs of the customers (Schaltegger et al., 2016). Before the implementation of the technology, people used to get injuries when exercising. Investing in technology that will detect the biosignals of potential threats will attract buyers. The technology is also easy to customize and apply to minimize user’s challenges during workout processes.
Why the Lean Startup Changes Everything
The methodology has reduced the number and frequency of start-ups failures. Lean startups founders do not commence with establishing the business plan. They embark on searching for a business model. The lean founders concentrate on the execution of strategy after conducting quick experiments and receiving feedback from the targeted customers. The methodology, therefore, changes everything concerning the steps followed by the owners to start a new venture.
The role of a business model in the lean startup approach is in helping entrepreneurs understand that they start day one with an untested hypothesis. It contributes to helping the founders identify their customers and create value propositions for the products to be offered in the market. Methodology differs from the traditional business plan because it helps entrepreneurs to analyze the building blocks of their project in a one-page template (Schaltegger et al., 2016).
Steve Job’s commencement speech
The message that I found relevant is, Truth be told, I never graduated from college, and this is the closest I’ve ever gotten to college graduation. As an aspiring entrepreneur, I learned to be authentic to win the attention of customers. The speech changed my attitude towards disclosing some features despite their potentiality of affecting the sales of the products, for instance, side effects after use. The disclosure should be short and to the point. The message hence changed my behavior to practice the value of transparency that helps in winning the trust of customers.
Peer Feedback on Five Ideas
The group has indicated a deep understanding of the classwork. It has searched for more information from outside and relevant sources in summarizing the candy crush business model. The group also did a recommendable job in describing the candy crush and Gesture Logic value proposition. It as well indicated a profound understanding of the lean startup methodology and traditional business plan used by the entrepreneurs.
Reference
Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2016). Business Models for Sustainability. Organization & Environment, 29(3), 264.