1. Which option should Franois select? Explain. Franois Caron is considering developing an app for a week-long...

Question:

1. Which option should François select? Explain.

François Caron is considering developing an app for a week-long music festival in southern France, which will have 18 stages on a 2 km2 land and around 200 performers. It generally attracts more than 150,000 visitors. The app will include schedules for each performance, a map of all the special attractions—bars, photo opportunity booth, shopping areas—and services—restrooms, taxis, and nursing area, bus schedules to the nearest town, and a feature called the “friend-finder” that allows users to find each other in a crowd. Knowing that most people attending the fest prefer mobile apps, François thinks there is a big market for it.
Unfortunately, Amaris, a big corporation that specializes in software development, has also begun developing a similar app for the music fest. It will include everything François’ app would except for the “friend finder” feature. Given his experience in app development, Amaris made an offer to hire François to as part of the app team for €10,000 plus a 5% share from the revenue that the app will make at the festival. Although the offer is good, François considers developing the app with the “friend finder” feature on his own, a unique feature Amaris would lack. He would also sell it €1 cheaper than the €3 price tag of Amaris’s app. However, he cannot match its marketing campaign.

image text in transcribed