Week 4

Question 1

How to reach your end consumer?

Answer 1

• Complementary technology
• Production
• Marketing
• Distribution

Have a competitive advantage:
can be obtained in the value chain

Question 2

How to protect your technology? (3)

Answer 2

IPR
Secrecy
Speed to market

Question 3

What are IPRs and what are teh advantages and disadvantages?

Answer 3

	Patent
•	Related to invention
	Registered design
	Copyrights
	Trademarks (organizational level)
	Advantages
•	Legal right
•	Tradable
•	Monopoly
	Disadvantages
•	Disclosure requirements
•	Invent around
•	Costly to enforce
•	Limited in time
•	Not always possible

Question 4

What are the advantages and disadvantages of Secrecy

Answer 4

	Advantages
•	No closure
	Disadvantages
•	Difficult to maintain
•	Costly
•	Resistance from inventors

Question 5

What are the advantages and disadvantages of speed to market

Answer 5

	Advantages
•	Competition is lagging behind
•	Costly to imitate
•	Quick profits
	Disadvantages
•	Over soon
•	Diminishing returns
•	Treadmill (time consuming and exhausting process)

Question 6

Should you be on the technology market or the product market?

Answer 6

This depends on the:
o Protectability of idea
o Complementary assets and concentration
o Collaboration or competition (depends on 2 aforementioned factors)

Question 7

Protectability and complementary assests matrix

Answer 7

P = protectability
CA = Complementary Assets

P = low, CA = freely available
Difficult to earn money
attackers advantage:
 Few contracting opportunities
 Exploiting technological leadership
 Stealth strategy in product market

P = high, CA = freely available
The inventor
Greenfield competition:
 Choice between product and technology market
 Exploit monopoly power
 Performance depends on strength of technological competition

P = low, CA = tightly held
The holder of C.A.
Reputation-based idea trading
 Few contract opportunities
 Depends on incumbent commitment to idea trading
 Entry in product market difficult

P = high, CA = tightly held
Best negotiator
Idea factories:
 Contracting with incumbents
 Product market costly or impossible
 Bargaining power

Question 8

what stages does the product life cycle have, the division of the market, and the onion of product thingy.

Answer 8

Lifecycle:
completely new market
emerging
growing
mature
declining

market:
innovators
early adopters
early majority
late majority
laggards

innovators - core product
early adopters - core product + couple aspects of 1st ring
early adopters - core product + full 1st ring

Question 9

What are the price positioning and place regarding the 3 beginning stages of adoption?

Answer 9

price
positioning
place

Innovators:
free or cost-based
functioning
direct sales

early adopters
value-based
leapfrog competition
direct sales

early majority
competition-based
ROI
efficient channels

Question 10

• 4 keys steps to cross the chasm between early adopters and early majority

Answer 10

o Launch the invasion with a direct sales force
o Target a niche market
o Offer a complete solution
o Create positioning to show you are the leader in that market

Question 11

• Focus on early majority you need these 5 diffusion forces:

Answer 11

o	Relative advantage
o	Compatibility
o	Simplicity
o	Trial ability
o	Observability

Question 12

what are expert entrepreneurs more likely to do compared to managers?

Answer 12

• not to believe market data’
• to use previous experience than managers
• to consider available financial resources when making decisions regarding the scenario
• to think holistically about the scenario
• to identify or pursue markets no mentioned in the Venturing product scenario
• more open to considering new markets at least in part because they were not as tied to articulation of the product as presented in the scenario
• base pricing decisions on a skim pricing strategy, while managers are more likely to base pricing decisions on a penetration pricing strategy
o Skim pricing: start highest, and lower it over time
• to make initial sales themselves, while managers are more likely to engage a sales force to approach a segment
• to incorporate partnerships into their decision making as they solved problems during the scenario.
• Not much difference between the number of channels chosen, it was found that Managers are more likely to select more segments than expert entrepreneurs.
• Expert entrepreneurs’ use of effectual logic both coheres with and lends credence to several recent insights from marketing and the resultant angst toward the field.
o Effectual logic is relational, network oriented, equity driven, and cocreational.
• In uncertainty, try:
o Cocreational or partnership strategies with potential customers, suppliers, and investors who they work with directly.

Question 13

What is an industry?

Answer 13

An industry is any group of firms that supplies a market, but markets are rarely homogeneous.

is likely to comprise a number of market segments.

Question 14

Typologies (concentration of competitors)

Answer 14

Fragmented:
     large market, similar sized competitors
     well-established
     competitive pricing, limited profit
     can become market leader

Consolidated:
few large competitors (mature/declining industry)
well established
defensive pricing possible
high barriers to entry
little opportunity other than radical product/market innovation

Completely new:
     not proven/demanding -> no comp
     high risk/high return
     first mover advantage
     can dominate market
     high marketing costs

Emerging:
     proven demand/size uncertain
     few competitors
     customer identification
     first mover
     opportunity for dominance
     high marketing costs
     barriers to entry being set

Growing:
     proven/growing demand
     dominant leaders emerge
     growing number of competitors
     competitive pricing
     buying patterns
     aggressive marketing in competitive market

Mature:
well established comps
defensive pricing
high barriers to entry
innovate based on existing product/service
innovate based upon process or after-sales service

Declining:
established process/procedures/buying patterns
limited life expectancy
declining range of products
consolidate market by becoming market leader
can short companies (BAD BAD)

Question 15

3 types of competitors

Answer 15

direct
indirect
future

Question 16

what are direct competitors?

Answer 16

those offering similar or identical products. These are the most important because they compete directly and you need to understand just how you are different and
better than them, and how you will convince their customers to switch to you.

Question 17

what are indirect competitors?

Answer 17

those offering close substitutes. Where you have an innovative product you may have no direct competitors but still need to persuade customers using the ‘inferior’ competitor offering to switch

Question 18

what are future competitors?

Answer 18

those who could enter your market in the future. If your new venture is successful it will attract competitors. You need to think who they might be and how they might be countered.

Question 19

What are values?

Answer 19

are core beliefs. The values you set for your business set expectations regarding how you
operate and threat people. They may well have an ethical dimension. Values form part of the cognitive process that will help shape and develop the culture of your business. Shared values form a bond that binds the organization together – aligning and motivating people

Question 20

What is a vision?

Answer 20

it is important to create a vision for what the business might become – important for your motivation and that of all the stakeholders. Your vision for the business should be based around and grounded in your business purpose.

A vision is a shared mental image of a desired future state – an idea of what your enterprise can become – a new and better world

Question 21

What is a mission?

Answer 21

the formal statement of business purpose is called a mission statement. The mission statement says what the business aims to achieve and how it will achieve it. The mission statement, therefore, usually defines the scope of the business by including reference to the product, value proposition, customer groups and the benefits they derive.

Question 22

What is value driven marketing

Answer 22

Value-driven marketing seeks to actively use customers to help sell existing product and develop new ones. This is based upon establishing a good relationship with customers – one that is underpinned by mutual self-interest, where there is something in it for both the customer and the company with each helping the other in certain ways.

Question 23

the advantage of branding are :

Answer 23

to customers:
 Easier product identification
 Clearer communication of value proposition
 Aids with product evaluation
 Reduction in risk when purchasing
(homogeneity of offering)
 Can create additional interest of character
for the product/service.

To product/service producers:
 Conveys emotional aspects of the value
proposition
 Promotes product/service loyalty
 Helps target marketing
 Defends against competitors
 Allows higher prices to be charged
 Increases power in distribution channels.

Question 24

Ethical values and corporate social responsibility (CSR)

Answer 24

At the base is CSR that delivers profit to the company. Next is CSR that comes through compliance with the law. Finally, there is CSR that is discretionary, based upon ethical norms and a desire to do the best thing for the community and society as a whole.

Question 25

Three sound commercial reasons for having a strong CSR policy:

Answer 25

1. Increased sales, brand identity and customer loyalty
2. Reduced operating costs and productivity gains
3. Improved new product development