session03 pt

Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

Session 03

Opportunity Recognition, Business Model, and

Strategy Development

Paulus AC Tangkere

Quiz 1

1. Apa yang dinamakan dengan kewirausahaan (entrepreneurship) itu?

2. Jelaskan persamaan dan perbedaan antara:

a. Kreatifitas

b. Inovasi

c. Komoditas.

3. Jelaskan the power of entrepreneurship.


Idea-to-opportunity transition


Seed of idea IdeaViable

Opportunity

PassionProfessionalExperience

IdeaMultiplication

Idea multiplication – IDEO technique


GatherStimuli

MultiplyStimuli

CreateCustomerConcepts

OptimizePracticality

1

2

3

4

Observe – customer anthropology

Brainstorm/brain-write – solution concept

Build a simple mock up – vizualised model

Add/remove features – improved features

The opportunity space


Global Business Environment

CustomersYour CompanySuppliers

Government RegulationsCompetitors

Competitors

Competitors

The customer


Social group (e.g., white collar, blue collar, etc.)Lifestyle (e.g., mainstream, sexual orientation, materialistic, active, athletic, etc.)Personality Traits (Worriers, Type A’s, Shy, Extroverted, etc.)Values (Liberal, Conservative, Open-Minded, Traditional, etc.)

AgeGenderHousehold IncomeFamily Size/Family LifecycleOccupationEducation LevelReligionEthnicity/HeritageNationalitySocial ClassMarital Status

PsychographicsDemographics

Common Demographic/Psychographic Categories

Target Audience Categories

PrimaryTarget Audience

SecondaryTarget Audience

Tertiary Target Audience

Macro trends


Child care, Home services – landscaping, house cleaning, prepared foods

Dual-Income households

Drain on healthcare system, growth of diet industry, changes in food industry, health clubs, home gyms

Obesity

Internet, media on demand, electronic publishing, spreadsheets, electronic communication

Personal Computing

Pampers, Rock & Roll, Television, Minivans, Real Estate, McMansions, etc.

Baby Boom Generation

ImpactTrend

Important Trends over the Last 50 Years

S-curve


Time

Mar

ket

Ad

op

tio

n

Win

dow of

Opportunity

1 2 3New

Compet

itors

Enter

Obsole

scen

ce

Phase

Setting prices


Price

Penetration Pricing Strategy

Cost-plus Pricing Strategy

Assessing Market Prices for Competing

ProductsStrategy

RequiresEnormousFinancing

Price May NotMatch

The ValueThe Best Option

Reaching customer – the value chain


BaseIngredients

-Beef,Sauce, etc.-From FoodDistributor

CO

GS

75-

90%

CO

GS

70-

75%

CO

GS

65-

85%

CO

GS

70-

80%

GM

25-

30%

GM

10-

25%

GM

15-

35%

GM

20-

30%

GourmetChili

FoodDistributors

GroceryStores

Example - Value Chain of Gourmet Chili

Learning about “stealth” competitors


Suppliers Databases

BusinessAngels

andVCs

SourcesOf

Intelligence

Opportunity checklist


Customer

Trends Market sizeMarketGrowth

Price/Frequency/

ValueDistribution

Competition

Key Success Factors

Vendors GovernmentGlobal

Environment

what is a business model?

VALUEPROPOSITION

COSTSTRUCTURE

CUSTOMERRELATIONSHIPS

CUSTOMERSEGMENTS

ACTIVITYCONFIGURATION

CORECAPABILITIES

PARTNERNETWORK

REVENUESTREAMS

INFRASTRUCTURE CUSTOMEROFFER

FINANCE

a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and

sustainable revenue streams

DISTRIBUTIONCHANNELS

[Osterwalder (2004) The Business Model Ontology]

business model framework


Business modelBusiness model

Revenue modelRevenue model Cost modelCost model

Revenue categoriesRevenue categories Cost of Goods SoldCost of Goods Sold Operating CostsOperating Costs


Amazon.com’s Revenue Model

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

2001 2002 2003 2004 2005

US$ in Thousands

MediaElectronicsOther

Total revenues


Amazon. com’s cost model

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2001 2002 2003 2004 2005

US$ in Thousands

Cost ofRevenueOperatingExpenses

Total costs and expenses


Basic strategy categories are:

DifferentiationLow costNiche


Attributes of winning strategies

Better

Faster

Cheaper


Several key aspects about capturing a first mover’s advantage You have to be first (or very early) into

the market You need to capture a large percentage

of the market quickly You need to create switching costs so

the customer will stick with you Very expensive, hard to win First Movers rarely win


The people are what Matters

Values

StructureSelection


Entry Strategy

Benchmark

Devise Initial Market Test

Create a Platform


Growth Strategy

FranchisingExpanding your

product mixGeographic expansion


Benefits of franchising

Adds new revenues

Speeds growth


Factors definingsuccess ofgeographic expansion

Customers Vendors Distribution


GradualGlobal

BornGlobal

Born AgainGlobal

Intermediating:Networks & Alliances

Direct:Technology

TechnologyTransfer

TechnologyLicensing

OutsourcingM&A

ActivitiesVentureFinance

FranchisingExportingForeignDirect

Investment

EnablingProcesses

EnactingProcesses

The Entrepreneurial Firm International Expansion Process


Means to expand globally

Pros Cons

Technology Transfer - Reduces entry costs - Risk of losing the technology

Technology Licensing - Generates revenue

- Conserves resources

- A lost opportunity to extend your own brand

Outsourcing - Cost-saving

Exporting - Cheap- Easy

- Additional costs in after-sales support and transportation- Moral hazard

Foreign Direct Investment (FDI) - Physical presence

- Control of assets

- Expensive

Franchising - Licenses an operational system - Risk of damaging the brand name

Venture financing - Both an enabling and an enacting mechanism

- Often leads to mergers and acquisitions with foreign companies

Mergers and acquisitions (M&A) - Established infrastructure

- Allow a company to grow and expand quickly

- Very expensive

session03 pt

Business

new york

power of entrepreneurship

gmgmbygrave zacharakis

business model ontology

coms cost model us

gs gs gs

coms revenue model us

cost of4