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MGF5600 INDIVIDUAL PAPER

You are required to write a report on one of the following innovative firms:
1. TikTok, also called Douyin in China
2. AirBNB
3. SpaceX
4. Xero
5. Stripe

The report will answer: What will it take for this innovator to succeed?

Important Notes.

1. You will select either TikTok (outside China) or Douyin (within China) as the
innovator.
2. You should establish what it will take for the innovator to succeed in the future.
Should the innovator continue what it is doing? Or is that insufficient? The report
will not be an account of what has made the innovator successful in the past. The
innovator’s historical activities and performance is relevant only insofar as it informs
what should be done going forward?
3. You can use another innovator if you choose. But you will need my permission and I
will only readings and resources on the innovator.

OUTLINE OF REPORT.

Your objective is to convince us that you know what it will take for the innovation
that you are studying to be successful with succinct and clear reasons ‘why’ and
actions ‘how’. You will use the business model canvas as an analytical framework
to establish the why and the how. NOTE: THE OBJECTIVE IS NOT TO DESCRIBE
THE CURRENT INNOVATION.

The following presents a general outline and then applies to the innovation “Go-
Jek.” Please note that these notes are only illustrative, and not intended to
represent best content or practice.

GENERAL OUTLINE: YOU MUST ADDRESS EACH OF THESE ISSUES

(i) You must start with a brief outline of the innovation. Because the innovation
is well known, don’t spend more than a paragraph on this.
(ii) The governing idea: What are the core factors that will explain the
prospective success of the innovation; and these factors must be linked to
the business model canvas. You must invoke the value proposition and
customer segment in these conclusions.
(iii) You must then turn to the value proposition and the customer segment that
the value proposition targets. In this section, you must substantiate the
basis for the proposed value proposition and target customer. You must
include an analytical framework for the value proposition (e.g. the value
proposition canvas or the value line approach) and substantiate the
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customer segment. The framework must seek to clarify the next best/most
competitive customer solution/offering. It must also seek to quantify how
much value accrues to the customer per dimension of value.
(iv) You must then clarify the way the value proposition will be delivered
through the channels for delivery and the way the customer relationship
will be built.
(v) You must identify at least three core activities, capabilities or resources
required to successfully deliver the value proposition, including leadership
and management.
(vi) You must be clear about the relationships that will need to be established
with key suppliers of capital, customers or those who control essential
resources and capabilities (e.g. Spotify’s relationship with providers of
music).
(vii) You must state a logic and point of view about what it will take for the
innovation to generate significant cash flow. This should focus on
managing the costs of operation and obtaining sufficient customers and
revenues to offset the costs. For instance what are the core costs of
operation at TikTok, how many customers and what revenue/customer
would be required to offset those costs.

Failure to address each of the issues above results in points deducted from the report.
Where possible you should substantiate your claims by reference to sources that you’re
using and those sources will generally be industry and market intelligence rather than
academic articles and frameworks (i.e. we know where the business model canvas
framework comes from but we don’t know where you’re getting data from regarding
the value proposition). When you present results and conclusions, do not use generic
headings (e.g. introduction, conclusion) but use more descriptive titles (like below) that
move this from an academic project to statements that are commercially/socially vital.

ILLUSTRATIVE CASE STUDY: GO-JEK

GO-JEK (this is NOT an analysis but a series of fabricated, illustrative and
hypothetical statements to guide what the report could look like).

1. Gojek https://www.go-jek.com/ is an Uber-Type Service for Motorbike

Transportation in Indonesia and Beyond
(i) Gojek is owned and controlled by XYZ, and largely driven by founder
Nadiem.
(ii) Gojek has three main customer segments: riders and drivers moving across
urban destinations and businesses wanting to move parcels and goods.
(iii) Gojek is first mover in this business but faces competition from XYZ.
(iv) Gojek is limited (or not) to motorbikes although it has plans to expand
beyond this.
(v) We’ll study what it will take for Gojek to be successful in Indonesia but not
elsewhere.

2. Gojek will succeed by providing a convenient and reliable ride sharing service
to working people and small businesses in busy Asian cities with a low cost
model but the larger opportunity for the business is Go-Food and Go-Pay.
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3. Value Proposition Saves Time and Increases Productivty through

Application to Working People With Income Above XYZ.

(i) Virtually all working Indonesians have smartphones and can freely access
the application.
(ii) Working people value convenience conferred by application (anytime,
anywhere pickup) and will pay XYZ for this.
(iii) Working people value reliability (on-time service, quality vehicles, reliable
driving, assured pricing) and will pay XYZ for this.
(iv) Working people will pay extra for reliability and convenience. Here analyze
cost of service relative to next best competitor, traditional ojek.
(v) Prime markets for gojek in Indonesia are Jakarta, Surabay, Medan ….
Anywhere with population above XYZ.
(vi) Poorer people will tend to prefer cost advantage and flexible negotiations of
traditional ojek. Sweet spot for ojek is working people making more than
XYZ.
(vii) Largest threat to the value proposition is emergence of competitors with
low barriers to entry although installed base and good delivery will limit
attrition to other
(viii) Value line analysis captures these features.

4. Customer Relationships will be Built with Loyalty Programs and

Knowledge Flowing From Application

5. For Gojek to Realize its Potential, Business Must have One-Click

Application, Honest and Reliable Drivers and Willingness to Build Trust
when things go wrong.

6. In Indonesia, Relationships with Layers of Government and Muslim

Communities are Paramount to Gain Local Support.

7. Gojek has Minimal Fixed Costs and can be Profitable with Userbase of XX
Millions.

8. Gojek will face stiff competition for Gofood and Gopay to be successful.
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GRADING SHEET FOR REPORT (EACH ITEM WILL CARRY EQUAL WEIGHT)

1. The executive summary was clear (recommendations for how innovation will be
successful). Remember less than 6 points, executive summary is not table of
contents – it is the synthesis of your conclusions.
2. The report drew insights from the value proposition with an analytical framework
(including competitors)
3. The report drew insights about the customer segment with supporting data and why
this supports the executive summary
4. The report drew insights about how to best manage customer channels and
relationships and why this supports the executive summary
5. The report drew insights about essential activities and resources and why this
supports the executive summary
6. The report drew insights about which partners and key relationships are required
and why this supports the executive summary
7. The report was clear about the implications of the costs and why this supports the
executive summary
8. The report was clear about the implications of the revenues and why this supports
the executive summary
9. The report was well researched and synthesized why the analysis led to the
conclusions/executive summary.
10. The report otherwise followed guidelines specified in unit guide (e.g. 10 pages, use
of Appendices, clear English checked with Grammarly, easy to follow).