A New Innovative Product - Creoqode

Individual Assignment #2
Course Name: International Business
Date: 25/6/16
Student Name: Ruel Wallace
Student Number: 3549178

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Overview

Creoqode is a London-based technology and design company, specialising in innovative products that enhance users' hardware and software skills in an enjoyable, creative and educational way.

2048, the DIY open-source game console, allows users to create unique retro-style video games and visuals whilst learning about coding.  The name 2048 refers to the special screen that is used for this game console. The screen is made of 2048 individual LED bulbs that are placed in a matrix form. The brightness, range of colours and 64 x 32 resolution provides a very attractive platform for users to create their own retro-style video games and other visuals.

Creoqode development board uses an Atmega 2560 R3 chip as the processor. The pins of the development board are specifically designed for 2048 and allow an easy plug-and-play platform for creativity. Creoqode gives users a complete freedom as any type of sensor could be plugged into 2048. For instance, it can be used as a custom music visualiser by using a sound sensor, or even be converted into a remote control for a drone.

2048 is a great chance to learn about hardware. Creoqode allows users to understand the working principles of a game console's components and encourages them to find new ways to customise their 2048 by adding new sensors and gadgets. Extensive knowledge about electronic devices will be gained in an enjoyable way. 2048 is ideal for users who are eager to create their own custom game console.

Creoqode 2048 is compatible with both Windows and Mac, and it uses Arduino IDE software as the programming platform, which is one the easiest ways to communicate with the hardware. Users will easily adapt to the game console regardless of their level of experience and is a great way for beginners to learn about programming.

Question 2:

2048 would be a commercial success in Trinidad and Tobago due to First Mover Advantage. A first mover is a form of competitive advantage that a company earns by being the first to enter a specific market or industry. Being the first allows a company to acquire superior brand recognition and customer loyalty. The company also has more time to perfect its product or service. With this advantage, first-movers can be rewarded with huge profit margins and a monopoly-like status. One source of this advantage is switching costs and buyer choice under uncertainty. Switching costs are the extra resources that later entrants have to invest in, in order to attract customers away from the first-mover firm. Buyer choice under uncertainty is the concept that buyers may rationally stick with the first brand they encounter that performs the job satisfactorily. In Trinidad and Tobago, with no other product marginally similar to the 2048, the idea was to preempt the available demand, build an enduring brand ahead of later competitors and as a result, establish a long-term sustainable competitive advantage.

Another reason that 2048 would be successful in Trinidad and Tobago is the related and supporting industries factor of Porter’s Diamond Model. Porter theorizes that four broad attributes of a nation shape the environment in which local firms compete, and these attributes promote or impede the creation of competitive advantage. This factor highlights the presence of suppliers or related industries that are internationally competitive.

Question 3:

2048 may meet some challenges when being introduced to Trinidad and Tobago. Many sectors of the economy have pleaded with the public to consume local products to increase growth in the economy. Consumers are being asked to steer clear of foreign imports. There are various programs in Trinidad that offer coding classes and the expectation is that the government will persuade consumers to reject the 2048 and invest in their own country by taking coding classes provided locally.

Secondly, 2048 might face the challenge from the Infant Industry Argument. It argues that a lot of developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries. To allow manufacturing to get a toehold, the argument is that governments should temporarily support new industries (with tariffs, import quotas, and subsidies) until they have grown strong enough to meet international competition. Trinidad does have an extremely small company, “Lateral” that manufactures tech devices that inspire self learning. Government funding them and making them a subsidy is a worry to 2048. As a result harsh tariffs and import quotas may be imposed on self learning devices coming into the country.