MI - Week 6

Question 1

What are the 4 types of threats caused by free products?

Answer 1

Assess the threat by looking at growth rate and defection rate.
1. Minor threat
2. Delayed threat
3. Immediate threat
4. Business model threat

Question 2

Growth rate

Answer 2

How fast is the new product/company growing? (higher than 40% is fast)

Question 3

Defection rate

Answer 3

How fast are our customers leaving us for the new product/company? (Higher than 5% is fast)

Question 4

Minor threat

Answer 4

Low growth and low defection: Monitor the situation

Question 5

Delayed threat

Answer 5

High growth, low defection: Coexist, acquire, or delay launch of free product (ex: google doc and word)

Question 6

Immediate threat

Answer 6

Low growth, high defection: Launch free product ASAP

Question 7

Business model threat

Answer 7

High growth, high defection: change business model, offer your own, acquire them

Question 8

What is a journey map?

Answer 8

The representation of a customer’s experience as they interact with their environment or your product/service. It also de-risks the design process.

Question 9

Emergent strategy

Answer 9

A flexible, adaptive approach that evolves in response to unexpected opportunities or changes.

Question 10

Deliberate strategy

Answer 10

A planned, intentional approach where actions align with predefined goals and objectives.