4 Flashcards
Product Life Cycle Model by Levitt, Phases
1-4
1 Market Development
2 Growth
3 Maturity
4 Decline
Problem-solution fit
1 general
2 questions?
3 boundaries?
1
- Have we identified a customer problem for which our start-up has a better solution?
- not about product yet, product may not exist at this time
2
- do the customers have the problem the founders suspect them to have?
- would the customers accept/prefer the founders solution?
3:
- customer problem is sufficiently widespread
- founders are capable of developing solution
Problem-market Fit
1 general?
2 factors?
3 hints?
1
- as soon as the product is ready for the market aim for scaling
- if problem-solution fit is wrong, you scale your mistakes up, loose money
- product is ready for the market at that time
2:
- value features: product attractiveness („follow function in social networks“)
- Hygiene features: need to be in place to reduce customer hesitance to buy products („guarantees“)
3:
- positive customer statements („net promoter score“)
- engagement („intensity of usage by customers“)
- retention („repurchases of the product“)
Effectuation
1-5
1 focus on control (environment is shapeable)
2 means-oriented (preferences, knowledge, networks)
3 affordable loss (restriction on downside potential)
4 partnerships (partners contribute means)
5 leverage contingencies (incorporation of external information)
Causation
1-5
1 focus on prediction (analysis of data: forecast)
2 goal-oriented (goal-driven action, estimation of necessary means)
3 expected return (decisions based on expected risk-adjusted value)
4 competitive relations
5 avoiding surprises
How to switch from Effectuation to Causation
1-3
1 propose and create value to customer (Strategy & Operations)
2 hire the right talents (workforce)
3 implement structures and processes (organization)
Market Entry in 2 Steps
1-2
1 Understand the customer problem
- via research
- tools: market research; customer interviews
- understand the problem; listening is key
2 Develop Solution
- derived from market needs
- solution is created by experimenting with problem
Step 1: Understand the customer problem
1 general
2 methods
- derive problems from market research reports
- research agencies (Gartner)
Methods:
- focus groups
- The Delphi technique
- problem interviews
- survey based interviews
Step 2: Develop your Solution
- developing solution is creative process
- experimenting is necessary
- creativity leads to unpredictable -> more uncertainty
- creativity tools available (brainstorming, benchmarking, ..)
Overall Business Strategy
1
2
3
1 goals and vision
- growth
- stabilization
- internationalization
2 business strategy
- cost leadership
- differentiation
- niche strategy
3 functional strategy
- marketing strategy
- production
- procurement
Focus of Start-ups in phases
1-4
1: availability: on-time and budget
2 price: efficiently organized and executed
3 cost: supply chain management and strategic partnerships
4 value: procurement strategy
Six key dimensions of procurement
1-6
1 Strategy & culture
- part of corporate goals
- CSR & sustainability
2 risk & value chain management
- risk prevention
- effective risk mitigation procedures
- early warning systems
3 Skills & enablement
- talent acquisition
- development & enablement of team
4 Operating model
- performance measurement and controlling
5 Technology & digital
- digitalization roadmap
- use of tools/systems
6 Value delivery
- proactive steering
- target and innovation-oriented
