Product
Sales & Marketing
Operations Finance
Human Resources
Corporate
Business
Managerial
1. What is going on in the world?
2. How does it affect our firm?
3. What can we do? What are our op<ons?
Live Class Whiteboard
Return from Covid
behaviors and norms…
People driving less
during covid, but now
driving more…could
increase carbon
emissions…
Return to Office is
becoming more
accepted versus WFH…
Covid era tech
(e.g., Zoom)
ques>ons…
Could affect the
economy via
produc>vity…
…also interest rates
increased…
Live Class Example
Table Stakes? or Differen<a<on?
STEEP Factor(s)
What’s happening in the world?
Return from Covid
behaviors (S, T, E)
Specific Effect on Firm
Sociocultural: Travel increasing; people less
fearful of traveling
Economic: Rising interest rates = more yield on
interim capital
…OR housing supply shrinks, which could affect
host levels
Economic: Interest rates high = life more
expensive = people need more disposable
income, which could lead to more hosts
Economic: Interest rates high = life more
expensive = Airbnb beFer deal?
Sociocultural: Belief that Airbnb is NOT cheaper,
and is more hassle!
Sociocultural: Airbnb not good for independent
travels or businesss travel…
Firm Response?
- Partner with mul/family owner to
rent out units to Airbnb
- Marke/ng Campaign:
Disadvantages of staying in hotels…
- Partner with security companies to
boost security percep/on/reality,
which addresses the sociocultural
belief that solo travel is not ideal.
- Address user experience and user
interface to prevent surprise cleaning
fees, etc., which addresses sociocultural
belief that Airbnb ism ore expensive and
economic shiE with cost of living...
Shades Low
Airline Manufacturer ✈
(1) Iden)fy📍- Who are the
players in each area of the Five
Forces? Aim for 1-2 names in
each area.
-Large startup costs
-High complexity
Medium
-Boeing could start
making own parts
-But poten>al for
diversifying revenue
(2) Analyze 🔎- What is the
dynamic in each area? Is the
threat high or low for Boeing?
Why? Is the bargaining power
dynamic high or low? Why?
(3) Share 💬- Be prepared to
share your insights and key
takeaways with the class.
Shades Low
-Few op>ons
-Weak subs>tutes
Shades Low
-Value proposi>on weak
for main Boeing buyers
Medium
Airline Service ✈
(1) Iden)fy📍- Who are the
players in each area of the Five
Forces? Aim for 1-2 names in
each area.
-Planes can be leased
-Routes/airports untapped
High
-Few suppliers
-Numerous rivals
(2) Analyze 🔎- What is the
dynamic in each area? Is
threat high or low for Delta?
Why? Is bargaining power high
or low for Delta? Why?
(3) Share 💬- Be prepared to
share your insights and key
takeaways with the class.
High
-Ample op>ons
-Strong subs>tutes
High
-Numerous subs>tutes
-Strong value props
Shades Low
Airline Manufacturer ✈
-Large startup costs
-High complexity
Medium
(1) Iden)fy - Who are the
players in each area of the Five
Forces? Aim for 1-2 names in
each area.
-Boeing could start
making own parts
-But poten>al for
diversifying revenue
(2) Analyze - What is the
dynamic in each area? Is the
threat high or low for Boeing?
Why? Is the bargaining power
dynamic high or low? Why?
(3) Share - Be prepared to
share your insights and key
takeaways with the class.
Shades Low
-Few op>ons
-Weak subs>tutes
Shades Low
-Value proposi>on weak
for main Boeing buyers
Medium
Airline Service ✈
(1) Iden)fy - Who are the
players in each area of the Five
Forces? Aim for 1-2 names in
each area.
-Planes can be leased
-Routes/airports untapped
High
-Few suppliers
-Numerous rivals
(2) Analyze - What is the
dynamic in each area? Is
threat high or low for Delta?
Why? Is bargaining power high
or low for Delta? Why?
(3) Share - Be prepared to
share your insights and key
takeaways with the class.
High
-Ample op>ons
-Strong subs>tutes
High
-Numerous subs>tutes
-Strong value props
iPhone
Wearables
Services
Insights: Future
For newer products or technologies, what factors
might a;ect adoption and the “shape” of the S-Curve?
Share text and/or graphics below.
*Key Factors:
-
Price
“Friction”
“Switching Costs”
Network E7ects
Value Proposition (10X?)
Strength of Substitutes
STEEP Factors (new laws,
economic shifts, etc.)
* Not exhaustive, but contains many of the key factors
Combo of Resources/Capabili<es:
Reusable Rockets + Top Engineering
Talent + Patents
Valuable
Rare
Difficult to Imitate
Organizable/ed to Capture Value
Valuable
Rare
Difficult to Imitate
Organizable/ed to Capture Value
One Resource/Capability:
Reusable Rockets
One Resource:
Patents
One Resource:
Top engineering talent
Value Proposi-on
1
Basics: Mapping
Instruc(ons: Drag the text boxes
below to the corresponding area
of the business for McDonald’s
(Note: Think restaurant level, not
McDonald’s corporate).
- Food prepara-on
- Hire, retain workers
Convenient,
affordable, and
reliable food/drink
- Personal Assistance
- Self-Service
- Automated
- Price Conscious
- Time Strapped
- Re-rees
- Kids & Families
- Staffing Agency
- Cleaning Company
Prime
Loca-ons
Brand
Food Costs
Real Estate
Expenses
Labor
Restaurant
Level
- “In-Store”
- Drive-Through
- Delivery
Food & Beverage
Sales
Shampoo and
styling product
companies
Free, quarterly
educa7on
sessions for our
team
More personal
service…
Loyalty…
Customers
seeking high
precision cuts
Customers
seeking the
latest, trendy
cuts
Unique TALENT…
Greater Btown’s
best…
Cost of educa7on
ini7a7ves almost
ZERO…
-Product sales
-Increased haircut revenue from raising
prices and more guest traffic
Insight: ALDI carries limited
selec4on, uses “Display Ready
Cases”, and has special guidelines
around sizing, labeling, etc. All of
this leads to less trucks/freight,
which reduces costs.
Strategy: Low-Cost vs Differen4a4on
Insight: Publix has individual items
placed on shelves, a very wide
selec4on, and an all-around
immaculate displays. This is all a bit
more expensive.
Strategy: Low-Cost vs Differen4a4on
Value Chain +
Ver(cal Integra(on
VRIO
Business Model Canvas
Strengths
Weaknesses
Opportuni1es
Threats
S-Curves
STEEP ShiKs
STEEP ShiKs
Value Chain +
Ver(cal Integra(on
Five Forces
Strengths
Weaknesses
Opportuni1es
Threats
S-Curves
Business Model Canvas
STEEP ShiKs
Financial Perspec-ve: Tips (!)
Customer Perspec-ve: Customer SaOsfacOon
via Google Reviews
Google makes it easy to track these, but we
also measured/counted them as part of our
monthly goals.
Because Ops were a significant source of income for our team, many team members
were anxious about raising haircut prices because it may cut into Ops (e.g. the customer
who paid $15 but leU a $20 – “keep the change” – may do the same when haircut price
is $17).
So, it was very strategic for us to track Ops and show the team that they were sOll seeing
an increase in total Ops (even during price increases – which we did twice!) We tracked
these in our monthly metrics that were shared at the all-hands meeOngs every two
weeks.
We thought these were valuable because it
was a free, simple way to gauge customer
saOsfacOon (and a free markeOng tool).
Learning & Growth Perspec-ve: In-Shop EducaOon Sessions
These allowed our team to stay on the “cu]ng edge” and was a form of “R&D” for us.
We also made it a goal to aFend a hair conference/show once a year. We went to
Nashville and Chicago. We simply measured these by # we had per quarter and % of
team aFendance.
Internal Perspec-ve: Average service Ome
and average customer wait Ome
We felt like we had to be good at both, and so
we tracked them through our POS (Point of
Sale) system and as part of our monthly
metrics dashboard that was visible in the
breakroom.
J375 Insight
“Dogfooding”
Using your own products or
services…pu7ng yourself in
shoes of the user.
J375 Insight
“Nobody’s Priority”
A firm goes aCer a customer segment
that is overlooked or not prioriEzed
by others.
J375 Insight
“Beachhead Strategy”
A firm fights to take a small area of a
contested market, with the goal of
using the captured area to more easily
expand to other areas.
J375 Insight
“CoopeEEon”
When firms who are compeEtors
decide to cooperate in hopes
that it will benefit both firms.
J375 Insight
“Complements”
A “product” that raises WTP for
another product, oCen at negaEve
or breakeven margins.