1. Rocking Business Innovation | 1© NC-Creators
3. How to create
Nightmare Competitors

2. Rocking Business Innovation | 2© NC-Creators
High Importance
Medium Importance
Low Importance
The Business Model Radar makes it
possible to show what Nightmare
Competitors are capable of

3. Rocking Business Innovation | 3© NC-Creators
Customer: HeterogeneousCustomer: Addressed by our
industry
Own Industry
High Importance
Medium Importance
Low Importance
The Business Model Radar allows to
profile what the established players
do and, for whom …
Value-
Creation 1
Offering 2
Supplier X
Utilization X
Offering X
Revenue
Generation X
Offering 1
Standards of
Integrity X
Value-
Creation X
Offering (O)
Value-Creation System (V)
Suppliers (S)
Model for Utilization (U)
Model for Generating Revenues (R)
Standards of Integrity (I)

4. Rocking Business Innovation | 4© NC-Creators
Customer: HeterogeneousCustomer: Addressed by our
industry
Own Industry
High Importance
Medium Importance
Low Importance
Customer: Specifically addressed
by the NC
Nightmare Competitor
… and the Business Model Radar
allows to profile how Nightmare
Competitors can disrupt incumbents
Value-
Creation 1
Offering 2
Supplier X
Utilization X
Offering X
Revenue
Generation X
Offering 1
Standards of
Integrity X
Value-
Creation X
Offering 1
Offering Y
Value-
Creation Y
Supplier Y
Utilization Y
Revenue
Generation Y
Standards of
Integrity Y

5. Rocking Business Innovation | 5© NC-Creators
Tesla is a Nightmare Competitor to the established car manufacturers. In fact, Tesla is now
defining their strategies. How did they do it? Let us go back to 2003 and assess how they
have probably developed their business model. Being aware of the nightmarish potential,
the established could have driven the development themselves…
Example: Tesla versus established car
manufacturers

6. Rocking Business Innovation | 6© NC-Creators
Their insight: the
established are trying
to make everybody
happy:
• Affluent and ‘less
so’
• Business and
personal users
• Solo travellers and
groups
• Sportive, luxurious,
stylish
• Progressive and
conservative
• Emotional and
rational
The Nightmare Competitor analysed the customer base of the established
players of the industry

7. Rocking Business Innovation | 7© NC-Creators
High Importance
Medium Importance
Low Importance
The Nightmare Competitor profiled the
business model of the established
players
Multiple Sources (S)
Orchestrator
(V)
Economies of Scale on
the Basis of Cars Sold
(U)
Features & Engine
Concepts (O)
Design & Prestige
(O)
Dealerships (V)
Purchasing
Options (O)
Extensive
Marketing
(V)
Selling Cars &
Financing (R)
Range of
Models (O)
After-Sales
Service (R)
Customer: Everybody
Car Manufacturers
Offering (O)
Value-Creation System (V)
Suppliers (S)
Model for Utilization (U)
Model for Generating Revenues (R)
Standards of Integrity (I)

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The Nightmare Competitor questioned whether the business model of the
established was able to make all customers truly happy …
They created different avatars of customers that are
not truly happy.
One of them was their favorite. Let us call him Steve.
He lives in Zurich, Boston, Los Angeles, Helsinki,
Tokyo or Beijing. He is a very successful lawyer, a
consultant to or the managing director of a high tech
or green company or maybe he is a famous actor. He
likes driving but is also aware of its environmental
impact. He perceives the offerings of the car industry
as dated. Instead, he is open for something new,
ahead of its time.
Tesla decided to take care of Steve.

9. Rocking Business Innovation | 9© NC-Creators
The Nightmare Competitor provided
Steve with a car for the opinion
leader he is
High Importance
Medium Importance
Low Importance
Tesla
Customer: The Affluent Green
Customer: Everybody
Car Manufacturers
Cars for Environmental
Leadership (O)
Features & Engine
Concepts (O)
Multiple Sources (S)
Orchestrator
(V)
Purchasing
Options (O)
Selling Cars &
Financing (R)
Range of
Models (O)
After-Sales
Service (R)
Design & Prestige
(O)
Economies of Scale on
the Basis of Cars Sold
(U)
Extensive
Marketing
(V)
Dealerships (V)

10. Rocking Business Innovation | 10© NC-Creators
The Nightmare Competitor identified
where the business model of the
established is not perfect for pleasing
Steve
High Importance
Medium Importance
Low Importance
Tesla
Customer: The Affluent Green
Customer: Everybody
Car Manufacturers
Offering (O)
Value-Creation System (V)
Suppliers (S)
Model for Utilization (U)
Model for Generating Revenues (R)
Standards of Integrity (I)
Cars for Environmental
Leadership (O)
Features & Engine
Concepts (O)
Multiple Sources (S)
Orchestrator
(V)
Purchasing
Options (O)
Selling Cars &
Financing (R)
Range of
Models (O)
After-Sales
Service (R)
Design & Prestige
(O)
Economies of Scale on
the Basis of Cars Sold
(U)
Extensive
Marketing
(V)
Dealerships (V)

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And the Nightmare Competitor found out
what is required to delight Steve
High Importance
Medium Importance
Low Importance
Tesla
Customer: The Affluent Green
Customer: Everybody
Car Manufacturers
Cars for Environmental
Leadership (O)
Charging
Infrastructure (O)
Stores & Galleries
(V)
Remote Updates
& Fixes (V)
Economies of Scale
on the Basis of Batteries
Produced (U)
As Green as
Can Be (I)
Features & Engine
Concepts (O)
Multiple Sources (S)
Orchestrator
(V)
Purchasing
Options (O)
Selling Cars &
Financing (R)
Range of
Models (O)
After-Sales
Service (R)
Design & Prestige
(O)
Economies of Scale on
the Basis of Cars Sold
(U)
Extensive
Marketing
(V)
Dealerships (V)
Offering (O)
Value-Creation System (V)
Suppliers (S)
Model for Utilization (U)
Model for Generating Revenues (R)
Standards of Integrity (I)

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This way the Nightmare Competitor
came up with something truly different
High Importance
Medium Importance
Low Importance
Tesla
Customer: The Affluent Green
Customer: Everybody
Car Manufacturers
Cars for Environmental
Leadership (O)
Charging
Infrastructure (O)
Stores & Galleries
(V)
Remote Updates
& Fixes (V)
Economies of Scale
on the Basis of Batteries
Produced (U)
As Green as
Can Be (I)
Features & Engine
Concepts (O)
Multiple Sources (S)
Orchestrator
(V)
Purchasing
Options (O)
Selling Cars &
Financing (R)
Range of
Models (O)
After-Sales
Service (R)
Design & Prestige
(O)
Economies of Scale on
the Basis of Cars Sold
(U)
Extensive
Marketing
(V)
Dealerships (V)
Offering (O)
Value-Creation System (V)
Suppliers (S)
Model for Utilization (U)
Model for Generating Revenues (R)
Standards of Integrity (I)

13. Rocking Business Innovation | 13© NC-Creators
The Nightmare Competitor Creator – is the system for anticipating what
business models might be shaping the future an industry
Customer
1. Describe
Customer
Base
of the
Establishe
d
2. Profile
Business
Model
of the
Establishe
d
3. Identify
Customer
s that are
not served
Perfectly
4. Create a
new
Business
Model for
Customer
BM Radar Constituents Profile
Core Offering Questioning Constituents New Profile
Specific Customer

14. Rocking Business Innovation | 14© NC-Creators
Go to slideshare.net to download core elements of the Nightmare Competitor
Approach

15. Rocking Business Innovation | 15© NC-Creators
www.nc-creators.com