Framing the Market Opportunity
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Framing the Market Opportunity

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  • Again, left axis might be better named “Millions of dollars” if MM stands for million. Also, what does the (E) after 2000 stand for? Estimated?
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Framing the Market Opportunity Framing the Market Opportunity Presentation Transcript

  • Framing the Market Opportunity HelpWithAssignment.com
      • To introduce the framework for market opportunity analysis
      • To examine three basic “value-types”
      • To discuss the identification of unmet and under-served needs
      • To explore how customers are segmented and targeted
      • To examine the role of resources in evaluating market opportunities
      • To discuss how to assess the attractiveness of a market opportunity
      • To examine eBay’s market opportunity
    HelpWithAssignment.com
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
    • Influenced by the New Economy
      • Competition occurs across industries rather than within industries
      • Competitive behavior occurs at unprecedented speed
      • Competition occurs between alliances of companies rather than between individual companies
      • Easier to influence customer behavior because still in early stages of being defined
      • Industry value chains are being reconfigured
    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, Technical, and Financial Opportunity Attractiveness Make “Go / No Go” Assessment HelpWithAssignment.com
  • HelpWithAssignment.com
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
      • More Efficient Markets
      • More Efficient Value Systems
      • Customize Offerings
      • Build Community
      • Introduce New Functionality or Experience
      • Disrupt Pricing
      • Ease Access
      • Radically Extend Reach
    • Trapped Value
    • New-to-the-World Value
    • Hybrid Value
    HelpWithAssignment.com
    • Trapped Value
    • More efficient markets lower search and transaction costs
      • Bizbuyer.com
      • Lending Tree Inc.
      • OffRoad Capital Corp.
    • More efficient value systems compress or eliminate steps in an existing value system
      • Amazon.com
    • New-to-the-World Value
    • Customizing offerings allows customers to add and remove features
      • Yahoo
      • Quicken.com
    • Build communities to leverage customers’ participation
      • Zeal.com
    • Introduce new functionality to transform all or part of an industry value chain
      • e-books
      • Internet telephony
    • Hybrid Value
    • Disrupt pricing and change pricing-power relationships
      • MySimon.com
    • Enable ease of access and help customers find products
      • Abebooks.com
    • Extend reach and welcome distant customers
      • Distance education
    HelpWithAssignment.com
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
  • Origination Information Gathering Evaluation Purchase Decision Postpurchase Evaluation and Behavior Pre-purchase Purchase Post- purchase What prompts the customer to action? What factors influence the customer’s decision? What attributes of the product does the customer consider? What options does the customer identify? What decision(s) does he make? What does the customer do about his decision? A framework to look systematically for unmet or underserved needs Because value creation is based on understanding and meeting customer needs. HelpWithAssignment.com
  • Origination Information Gathering Evaluation Purchase Decision Postpurchase Evaluation and Behavior Personal use Gift Features Manufacturer/ Brand Type (digital/film) Cost Likelihood of repeat purchase or recommendation Pre-purchase Purchase Post- purchase Film Digital Instant APS Basic Fully loaded Complexity Usage occasions Reviews Past Experiences Budget constraints Print quality Reliability Learning curve/ ease of use Range of accessories 35mm Body Type Lens Zoom Fixed SLR Point & shoot Throw-away Standard
  • Origination Information Gathering Evaluation Purchase Decision Postpurchase Evaluation and Behavior Pre-purchase Purchase Post- purchase Likelihood of Repeat or Referral Comfort Style Photos Degree of Memorability Event Break Honey-moon Reunion Holiday Number and Relationship of Travelers Weather Duration and Distance Activities Budget Travel Agent Travel Guides Past Experiences Brochures Chat rooms Books Vacation Package Independently Planned World Tour Cruise Small-Town Discovery Beach Escape Outdoor Adventure
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
  • HelpWithAssignment.com
  • Meaningful Actionable Substantial Measurable
      • Customers must demonstrate needs, aspirations or behavioral patterns that are similar within a segment and different across segments
        • A distinction between a price-sensitive and a quality-seeking segment is meaningful, since the two segments demonstrate distinguishable sets of needs
      • A company must be able to reach customers within each segment through effective and targeted marketing programs
        • A customer segment consisting of customers with blue eyes is not actionable, since it is very hard to identify and reach only customers with blue eyes
      • Segments must be large and profitable enough to make the investment in serving them worthwhile
        • MyCFO.com is targeted toward high-net-worth individuals, helping them manage their portfolios; even though the number of those individuals is small, the dollar amount managed is sizeable, thus constituting a substantial segment
      • Key characteristics of the segments (e.g., size and spending patterns) must be easy to measure
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  • HelpWithAssignment.com
  • Purchase Occasion Reader Self-Consumption Gift Institutional By Request College Education Moderate Education Limited Education Reference and Research Materials How-To Information Hobby or Special Interest Entertainment For Display In-Depth Topical Insights and Discussion How-To Information Required Reading Comp-endium by Topic Advice and Recom-mend-ations HelpWithAssignment.com
  • Purchase Occasion Reader Self-Consumption Gift Institutional By Request College Education Moderate Education Limited Education Reference and Research Materials How-To Information Hobby or Special Interest Entertainment For Display In-Depth Topical Insights and Discussion How-To Information Required Reading Comp-endium by Topic Advice and Recom-mend-ations HelpWithAssignment.com
    • High
    • Moderate
    • Low
  • Purchase Occasion Reader Self-Consumption Gift Institutional By Request College Education Moderate Education Limited Education Reference and Research Materials How-To Information Hobby or Special Interest Entertainment For Display In-Depth Topical Insights and Discussion How-To Information Required Reading Comp-endium by Topic Advice and Recom-mend-ations HelpWithAssignment.com
    • New Economy
    • Either
    • Traditional
  • HelpWithAssignment.com
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
  • Identify core benefits in the value proposition or cluster Identify capabilities that relate to each benefit Link resources to each capability Identify to what extent the firm can deliver each capability Identify partners who can complete capabilities HelpWithAssignment.com
  • Uniqueness
      • Good resource systems provide benefits, capabilities and activities that are different from those of competitors
    Links
      • Good resource systems have links between capabilities and benefits, among capabilities, among resources, and between virtual-world and physical-world business systems
    Sustainability
      • Good resource systems are difficult for competitors to replicate
    HelpWithAssignment.com
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
  • HelpWithAssignment.com
  • Competitive Vulnerability Technical Vulnerability Magnitude of Unmet Need Interaction Between Segments Likely Rate of Growth Technological Vulnerability Market Size Level of Profitability Positive Factor Neutral Factor Negative Factor HelpWithAssignment.com
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
  • HelpWithAssignment.com
  • eBay 73% uBid 17% Yahoo 3% Amazon 2% Egghead 5% HelpWithAssignment.com
    • Trapped
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    • Conduct preliminary research on items
    • Bid
    • Win?
    • Seller
    • Auction House / Dealer
    • Buyer
    • Realize he or she would like to sell something
    • Like to browse or have a specific interest or need
    • Research the value of the item and a possible channel for exchange
    • Research venues / channels for procurement
    • Choose exchange agent and negotiate terms
    • Choose procurement channel
    • Establish and agree to selling / buying process
    • Deliver merchandise
    • Determine appropriate schedules and locations
    • Set auction schedule and choose venue
    • Attend auction
    • Hold auction
    • Receive payment
    • Pass a percentage of proceeds to seller
    • Pay
    • Receive payment
    • Receive merchandise
    • Take commission
      • Notification of when specific items are being sold
      • Easy channel / venue access
      • Objective listing agent
      • Passive search and decision process
      • Easy listing process and objectives
      • Ability to list modestly priced items
      • Improved availability and access
      • Simplified shipping; elimination of two-stage process
      • Time to conduct due diligence research on items
      • Time to think about purchase
      • Ease of payment
      • Reasonable agent fees
      • Minimized time lag between merchandise surrender and compensation
    • Pre-Purchase
    • Purchase
    • Post-Purchase
    • High Income
    • Moderate Income
    • Limited Income
    • Active Deal-Makers with Means
    • Active Frugal Collectors
    • Price-Sensitive
    • Active Frugal Collectors
    • Passive Collectors
      • Ease
      • Convenience
    • Limited Accessibility or Options
    • History of Responding to Promotions
    HelpWithAssignment.com
  • Competitive Vulnerability Magnitude of Unmet Need Interaction Between Segments Likely Rate of Growth Technological Vulnerability Market Size Level of Profitability Positive Factor Neutral Factor Negative Factor HelpWithAssignment.com
      • Market Opportunity Analytic Framework
      • Three Basic “Value Types”
      • Use of the Customer Decision Process to Identify Unmet and Underserved Needs
      • Segmentation and Targeting
      • The Role of Resources in Evaluating Market Opportunity
      • Assessing the Attractiveness of a Market Opportunity
      • EBay’s Market Opportunity
      • Conclusion
    HelpWithAssignment.com
      • A firm needs to follow a rigorous approach to correctly isolate market opportunities — the market opportunity analysis framework is a six-stage process that addresses this need
      • The six stages of the framework are: 1) seed opportunity in an existing new value system, 2) identify unmet and underserved need(s), 3) identify and choose target segments, 4) declare the company’s resource-based opportunity for advantage, 5) assess competitive, technological and financial opportunity attractiveness and 6) conduct a “go/no-go” assessment
      • In assessing the attractiveness of an opportunity, four dimensions should also be considered: 1) competitive intensity, 2) customer dynamics (e.g., unmet needs, likely rate of growth, etc.), 3) technological vulnerability and 4) microeconomics (industry size and profitability)
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