Conducting a Market Study & Developing the Business model- delivered at IIT Roorkee


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These are the slides from a talk I delivered at IIT Roorkee (India) on 15th Sep,07. The talk was titled - "Conducting a Market Study & Developing the Business Model". I used our experience with slideshare to illustrate some of the points covered in the presentation.

The event was organised by the entrepreneurship cell at IIT Roorkee.

Roorkee is incidentally, India's oldest engineering college and it was a real pleasure visiting its campus.

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  • So that’s the concept. So why is this cool, and why is this a good business? Web 2.0 has revolutionized personal media sharing, making it simple, viral and organ ized around social networks. But sharing of office documents is still stuck in the dark ages! PowerPoint files are a ubiquitous publishing format that are difficult to share : the file sizes are huge, and you need an expensive application to view them. But PowerPoint is the most commonly available mass-market software for producing multimedia content. It lets you take words and pictures, and string them together into a multimedia object that tells a story. And the content is often perfect for the short-attention span of web consumers : quick, entertaining, approachable chunks of images, text, and sound that can be consumed rapidly. So we think that there will be a massive rush to share office documents on the web, just as there was for sharing photos and video. We think that PowerPoint files are the sweet spot of web document sharing. And we are the currently the dominant place to share powerpoint on the web, so we are well positioned to own a large chunk of this market as it expands.
  • Our current site supports Public, Synchronous sharing. One feature that our users consistently ask for is private sharing. We will certainly add this in the next few months. But the opportunity of synchronous web-based sharing is a compelling one, that we feel merits exploration. The opportunity is huge: Web-ex and similar online meeting solutions are bulky and expensive, and frankly are overkill for powerpoint-driven meetings. We can commoditize this section of the market, simply by adding synchronous sharing to slideshare.
  • Conducting a Market Study & Developing the Business model- delivered at IIT Roorkee

    1. 1. Conducting a Market Study & Developing the Business Model Lessons learnt in creating SlideShare
    2. 2. SlideShare <ul><li>The World’s largest community for sharing presentations </li></ul><ul><li>Called ‘ YouTube of PowerPoint ’ by TechCrunch </li></ul><ul><li>Launched Oct 06, growing fast </li></ul><ul><li>Run by a 14 member Delhi + USA based startup </li></ul>
    3. 3. Large-scale social sharing for photos for video for Presentations
    4. 4. What people share on SlideShare... Cartoons Paintings Humor Love Songs Talk slides Images of women Sermons Standalone presentations Activism Lesson plans Movie reviews Mother’s day cards
    5. 5. Conducting a Market Study & Developing the Business Model
    6. 6. Typical Business Planning roadmap Need Gap Identification Ideation Mission/Vision Statement Detailed business planning <ul><li>Competitive analysis </li></ul><ul><li>Product Positioning Map </li></ul><ul><ul><li>Core Value Proposition </li></ul></ul><ul><li>Develop Business Model </li></ul>
    7. 7. Competitive Analysis <ul><li>Direct Competition </li></ul><ul><ul><ul><li>same product, same geography </li></ul></ul></ul><ul><ul><ul><li>same product, different geography </li></ul></ul></ul><ul><li>Indirect (overlapping) competition </li></ul><ul><li>Future Competition </li></ul><ul><ul><ul><li>who could be competitors in future </li></ul></ul></ul><ul><ul><ul><li>competition from disruptive technologies </li></ul></ul></ul>
    8. 8. Sources of competitive info <ul><li>empirical knowledge </li></ul><ul><li>conferences, events </li></ul><ul><li>media (print, electronic) </li></ul><ul><ul><li>published studies, newspaper articles </li></ul></ul><ul><li>internet search </li></ul><ul><li>industry resources </li></ul><ul><ul><li>industry directories, associations, newsletters </li></ul></ul>
    9. 9. Detailed competitive mapping <ul><li>Syndicated research </li></ul><ul><ul><li>free/paid basis </li></ul></ul><ul><ul><li>private companies / industry organizations </li></ul></ul><ul><ul><li>e.g. IAMAI, JuxtConsult, Indicus </li></ul></ul><ul><li>Employ professional market research agencies </li></ul><ul><ul><li>IMRB, AC Nielson </li></ul></ul><ul><li>Conduct own market mapping study </li></ul><ul><ul><li>previous projects, interns, students </li></ul></ul>
    10. 10. Product Positioning Map (slideshare example)
    11. 11. 2 X 2 Product Matrix (slideshare example) Online meetings Webinars Synchronous Private sharing Open, social sharing Asynchronous Private Public
    12. 12. The Positioning …(slideshare example) <ul><li>SlideShare…the “YouTube of Powerpoint” </li></ul><ul><li>the elevator pitch </li></ul><ul><li>- video </li></ul><ul><li>your product’s core value proposition </li></ul><ul><li>how it is different from others </li></ul>
    13. 13. Why is positioning important? <ul><li>Positioning has to be clear & simple </li></ul><ul><ul><li>information & choice overloaded societies </li></ul></ul><ul><ul><li>explosion of products on the web </li></ul></ul><ul><ul><li>“me too”, overlapping features </li></ul></ul><ul><ul><li>low entry barriers for new players </li></ul></ul><ul><ul><li>short product life cycles on the web </li></ul></ul>
    14. 14. Factors influencing business models <ul><li>Depends on business objectives </li></ul><ul><ul><ul><li>trade-off between growth & monetization </li></ul></ul></ul><ul><li>Depends on financials </li></ul><ul><ul><ul><li>cash burn rate </li></ul></ul></ul><ul><ul><ul><li>expectations from investors </li></ul></ul></ul><ul><li>Depends on exit strategy </li></ul>
    15. 15. Internet business models <ul><li>Transaction Based </li></ul><ul><ul><ul><li>charge users per interaction </li></ul></ul></ul><ul><li>Advertising </li></ul><ul><ul><ul><li>revenues driven by internet traffic </li></ul></ul></ul><ul><li>Freemium model </li></ul><ul><ul><ul><li>subscription based </li></ul></ul></ul><ul><ul><ul><li>basic is free, charge high-end customers </li></ul></ul></ul><ul><ul><ul><li>use free as marketing incentive </li></ul></ul></ul><ul><li>Content syndication </li></ul><ul><li>Licensing </li></ul>
    16. 16. Scenario building & what-if analysis <ul><li>Evaluate multiple options </li></ul><ul><li>Initial financial projections </li></ul><ul><ul><ul><li>revenue, expenses, profit </li></ul></ul></ul><ul><ul><ul><li>cash flow projections </li></ul></ul></ul><ul><ul><ul><li>deficit could mean you need external funding </li></ul></ul></ul><ul><li>Estimate break-even point </li></ul><ul><li>Projections beyond break-even till exit </li></ul>
    17. 17. Preliminary Financial Planning (fictitious example)
    18. 18. Preliminary financial planning (fictitious example)
    19. 19. Reality check reqd! <ul><li>Projections are numbers on a spreadsheet </li></ul><ul><ul><ul><li>how to validate your assumptions, hypothesis </li></ul></ul></ul><ul><li>Get as much feedback as possible </li></ul><ul><ul><ul><li>other entreprenuers </li></ul></ul></ul><ul><ul><ul><li>venture capitalists, financial institutions </li></ul></ul></ul><ul><li>Make dry runs if needed </li></ul>
    20. 20. Questions ? Thank You