1 / 12

Framework for Market Opportunity

Framework for Market Opportunity. Seed Opportunity in Existing New Value System. Identify Unmet and Underserved Need(s). Identify Target Segment(s). Declare Company’s Resource-Based Opportunity for Advantage. Assess Competitive, Technological, and Financial Opportunity Attractiveness.

Renfred
Télécharger la présentation

Framework for Market Opportunity

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Framework for Market Opportunity Seed Opportunity in Existing New Value System Identify Unmet and Underserved Need(s) Identify Target Segment(s) Declare Company’s Resource-Based Opportunity for Advantage Assess Competitive, Technological, and Financial Opportunity Attractiveness Make “Go / No-Go” Assessment

  2. Framing the Market Opportunity • MSN CarPoint identified an opportunity to leverage the Internet to deliver customer value in the car industry Leverage the Internet to Improve the Consumer Car-Buying Process • The retail car-buying process was frustrating and inefficient: • Little information available to the consumer • Bargaining with salesperson viewed as an hassle • Long process overall Car Buyers Are Dissatisfied With Current Retail Car-Buying Process • MSN CarPoint selected two primary target segments for its service: • “The intimidated by the process” • “The information seekers” Shoppers Who Feel Intimidated by Sales People and Look for More Efficient Way • MSN CarPoint could leverage Microsoft’s expertise in software development, its brand name and its multitude of online properties Microsoft’s Software and Free Placement on All Its Websites • Competition was getting fierce with more and more online car services entering the market… • But the financial opportunity was large: 66% of new car buyers were estimated to use online services in 2000 How Big Is the Online Car-Buying Market? Who Are CarPoint’s Main Competitors? • In 1996, the first version of CarPoint was shipped • By 1998, CarPoint was driving $5 million in car sales a day Make “Go / No-Go” Assessment

  3. Competition Occurs Across Industry Boundaries Rather Than Within Industry Boundaries • Web-enabled business models often lack theconstraints of physical product manufacturing and service delivery • Can match value creation from the customer’s perspective • Ex. CarPoint: customer can • Research • Purchase • Finance • Obtain insurance • all at one place • Lesson: Do not limit opportunity assessment to narrow or traditional definitions of industry or value systems

  4. Competitive Developments and Responses are Occuring at an Unprecedented Speed • Advances in technology and the adoption of Creative Business Models are occuring rapidly! • Ex. Browser Wars • Microsoft vs. Netscape in late ‘90s • Q: How often do you think new versions appeared? • A: Approximately every six months. • Lesson: Keep abreast of important trends that could redefine opportunity attractiveness.

  5. Consumer Behaviour is Easier to Influence and Change • Companies can introduce products that lead to new behaviour and customer requirements • What companies have greatly influenced the music industry and how?;What technology have these companies taken advantage of?;What other industries have also been affected by this trend and how?

  6. Competition occurs between alliances of companies rather than between Individual Companies • Ex. Browsers depend on operating systems, PCs and modem technologies • Co-opetition • Companies as both competitors and collaborators

  7. Industry Value Chains, or Systems are Rapidly being Reconfigured • What are some ways in which the Internet has allowed businesses to reconfigure customer interaction? • 24/7 interactions • Increasing the level of information throughout the value chain • Eradicates or reduces the cost of some value chain stages • Ex. Job Placement / Executive Recruiting industry • Now a two-way exchange (employers search resumes; job seekers search postings) • Greatly enhances the access and reach of individuals in this marketplace

  8. Value Systems • An interconnection of processes and activities within and among firms that creates benefits for intermediaries and end consumers • entire chain of suppliers, distributors, competitors, buyers and intermediaries • Often a value system can be reinvented in the networked economy

  9. Three Value Types for new business possibilities 1. Trapped Value • Unlock trapped value by creating: • A. more efficient markets by lowering search and transaction costs • (How does Lending Tree (www.lendingtree.com) do this?) • B. more efficient value systems by compressing or eliminating steps in a current value system • ex. distribute in-house, technical documents over the web

  10. Three Value Types for new business possibilities 2. New-to-the-World Value • Enhance an existing offer or become the basis for a new offer by: • A. Customizing Offerings • Weather.com • How does Quicken.com do this? • B. Building Communities • What are some community building tools • look at myfamily.com for examples • Q: What marketing lever is best exploited through community building? • A: Viral Marketing • C. True New-to-the-World Functionality or Customer Experience • Most famous example is Napster with file-sharing (peer-to-peer) and the MP3 file format • How does net2phone.com create true new-to-the-world functionality

  11. Three Value Types for new business possibilities 3. Hybrid Value • synergy between both Trapped and New-To-The-World Value by: • A. Disrupting Current Pricing by creating transparency in the retail industry and offering unbiased information • What are two ways in which mysimon.com does this? • B. Enabling Ease of Access by creating portal sites (ex abebooks.com) or internet channels for existing stores (ex. Target.com) • C. Radically Extending Reach by extending the boundaries of an existing market or creating a new market by delivering more cost-effective reach • any distance learning site

  12. Exhibit 2–2: Three Types of Basic Value • Trapped Value • New-to-the-World Value • Disrupt pricing • Ease access • Radically extend reach • Customize offerings • Build community • Introduce new functionality or experience • More efficient markets • More efficient value systems • Hybrid Value

More Related