OPPORTUNITY IDENTIFICATION
Dr. Dawne Martin
MKTG 241
January 29, 2013
LEARNING OBJECTIVES
• Review the Opportunity Identification paper
• To investigate trends in the external environment that offer new
business opportunities
• Review “discovery skills” identified in the HBR article “The
Innovator’s DNA”, December 2009
• Identify trends in the environment
• Determine how the trends justify the business opportunities
• For next time: Marketing for Entrepreneurs, Chapters 3
ONE-PAGE OPPORTUNITY IDENTIFICATION
• Due: Thursday, January 31, 2013
• Trends: Identify, document and describe trends relevant to the
opportunity
• Opportunity: Describe the opportunity, including industry, business
model and target market
• Justification: Expand on trends and how the trends suggest this
opportunity
THE INNOVATOR’S DNA
DYER, GREGERSEN & CHRISTENSEN, HARVARD BUSINESS REVIEW, DEC.
2009
• Senior executives in most innovative companies take
responsibility for creative work – spend 50% of time in
“discovery skills”
• Discovery skills
• Associating
• Questioning
• Ask “Why?”, “Why not?”, “What if?”
• Imagine opposites
• Embrace constraints
CHARACTERISTICS OF A GOOD OPPORTUNITY
• Creates significant value for customers– solving an important
problem, fulfilling a need – willing to pay premium price
• Offers significant profit potential – meets risk/reward
expectations
• Good fit between entrepreneur’s capabilities and expertise
• Offers sustainability over time
• Can obtain financing
INNOVATOR’S DNA (CONTINUED)
• Discovery Skills (continued)
• Observing: potential customers, suppliers, competitors
• Experimenting
• Intellectual exploration
• Physical tinkering
• Engaging new environments
• Networking : with diverse individuals
GLOBAL TRENDS
•
Economic Trends
•
Consumer Trends
•
Financial Market Trends
•
Technology Trends
•
Social Media Trends
•
Mobile Trends
•
Demographic Trends
•
Design & Fashion Trends
•
Health & Wellness Trends
•
Travel Trends
•
http://www.globaltrends.com/features/strategy-a-leadership/67-10-key-trends-to-watch
ERNEST & YOUNG GLOBAL TRENDS
http://www.ey.com/GL/en/Issues/Business-environment/Six-global-trends-shaping-thebusiness-world
FAITH POPCORN:EN-GEN
2011: FAITH POPCORN’S BRAINRESERVE
PREDICTIONS
• EN-GEN: End of traditional gender roles – neither males nor female, just
human
• Trends
• Women hold 51% of managerial & professional jobs
• 4 of 10 mothers are primary breadwinners, bring in close to ½ household
income
• Single, childless women under 30 earn 8% more than male peers
• Number of women with 6 figure salaries increased by 14% in last two
years
• Women’s health following men – increase in chance of heart attacks,
heart surgery
GENDER TURNING POINTS: OPPORTUNITIES
• Merger of Artistry & Technology – simple, elegant design (Nespresso)
• Beyond the Bento Box – men & women experiment with interests and ideas
normally associated with other gender
• Electric Shock: Electric vehicles combine women’s concerns for
environment with men’s love of technology
• Recession Lift: Economy has made it difficult for men 45+ to compete –
boom in male plastic surgery
• Veganomics: More sensitivity to sources of food and consumer products
leads to growth in vegan values in all areas (bamboo floors, MooShoes)
• Robot Frenzy: Breakthroughs in robot technologies in medicine,
manufacturing, prosthetics, military and more
BUSINESS MODEL BUILDING BLOCKS
•
Customer Segments
•
Segments
• Needs require and justify a distinct offer
• Reached through different distribution channels
• Require different types of relationships
• Have substantially different profitability
• Are willing to pay for different aspects of the offer
•
Segmentation approaches
• Mass market – don’t distinguish between customer segments
• Niche market – specific, specialized customer segments
• Segmented – serve multiple segments with different needs
• Diversified – serves two unrelated customer segments
• Multi-sided Platform (or markets) – two or more interdependent customer segments (Ebay)
BUSINESS MODEL BUILDING BLOCKS
•
Value Proposition: Creates value for a customer segment through a distinct mix of
elements catering to segments needs
•
Newness – meets a new set of needs – cellphones
•
Performance – improving product or service performance
•
Customizations – tailoring product and services to specific customer needs – mass customization and
co-creation
•
Get the Job Done– Rolls Royce manufacturers and maintains aircraft engines
•
Design
•
Brand/status
•
Price
•
Cost Reduction
•
Risk Reduction
•
Accessibility
•
Convenience/Usability
BUSINESS MODEL BUILDING BLOCKS
• Channels
• Channels Types
• Direct – sales force, web
sites, own stores
• Functions:
• Building awareness among
customers
• Helping customers evaluate
value
proposition/alternatives
• Allowing customers to
purchase specific products
or services
• Indirect – Partners stores,
wholesalers
•
Customer Relationships
• Personal assistance
• Dedicated personal dinner
• Self-service
• Delivering value proposition
to customer
• Automated service
• Provide post-purchase
customer support
• Co-creation
• Communities
Business Model Building Blocks
• Revenue Streams
• Asset sales
• Usage fees
• Subscription
• Lending/renting/leasing
• Licensing
• Brokerage fees
• Advertising
• Key Resources
• Physical
• Intellectual
• Human
• Financial
• Key Activities
• Production
• Problem solving
• Platform/network
BUSINESS MODEL BUILDING BLOCKS
• Key Partnerships
• Optimization and
economies of scale
• Reduction of risk and
uncertainty
• Application of particular
resources and activities
• Cost Structure
• Cost –driven
• Value-driven
• Cost structure
characteristics
•
•
•
•
Fixed costs
Variable costs
Economies of scale
Economies of scope
IN YOUR GROUPS
• Work on your Opportunity Analysis
• Identify your customer base and your unique value