Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Startnowhow 9.2.17 Market and Competitor Research

1,007 views

Published on

by Dr. Joachim BEHRENDT

Published in: Business
  • Be the first to comment

Startnowhow 9.2.17 Market and Competitor Research

  1. 1. MARKET AND COMPETITOR RESEARCH Dr. Joachim Behrendt
  2. 2. INTRODUCTION StartNowHow • Open seminar series for active and prospective entrepreneurs • 10 sessions on monthly basis until summer 2017 • Covers relevant theoretical and practical aspects of entrepreneurship • Based on lecture „Entrepreneurship“ @Bogazici University • Based on experiences of entrepreneurs, investors, mentors and consultants • Each session with guest speaker (entrepreneurs, investors, mentors, etc.) • Certificate provided for participants (from BIC Angels / Bogazici University Entrepreneurship Center) joining at least 70% of the sessions • Language: English / Turkish • Thursdays 17.15h – 19.30h • Next session: Thu 9. March 2017 • Topic: Funding for Startups – Stage Financing for Ventures • Guest Speaker: Ali Karabey, 212ltd • Early registration for each session required (eventbrite), limited capacity! • Priority for regular participants Startnowhow09.02.2017 2
  3. 3. INTRODUCTION StartNowHow - Seminar Topics (preliminary) 1. Thu 22.09.16: The entrepreneurial ecosystem in Turkey 2. Thu 20.10.16: Entrepreneurship as a profession 3. Thu 17.11.16: Financial planning for startups 4. Thu 15.12.16: Planning, developing and testing a business model 5. Thu 12.01.17: Opportunity recognition and evaluation 6. Thu 09.02.17: Market and competitor research 7. Thu 09.03.17: Funding the startup – stage financing for ventures 8. Thu 06.04.17: Startup valuation 9. Thu 04.05.17: The investment process – pitching, negotiations and termsheet 10. Thu 01.06.17: Success and failure as an entrepreneur Startnowhow09.02.2017 3
  4. 4. INTRODUCTION StartNowHow - Literature • Bowers, Brent, 8 Patterns of Highly Effective Entrepreneurs, Doubleday, New York, NY 2008 • Bygrave, William D. / Zacharaiks, Andrew, The Portable MBA in Entrepreneurship, 4th ed., Wiley, Hoboken, NJ 2010 • Drucker, Peter F., Innovation and Entrepreneurship, 1st ed. 1985, reprinted 2010, Elsevier, Kiddlington, 2010 • Harper, Stephen C., Extraordinary Entrepreneurship: The Professional’s Guide to Starting an Exceptional Enterprise, Wiley, Hoboken, NJ 2005 • Hirshberg, Meg Cadoux, For Better or for Work, All Inc., New York, NY 2012 • Hisrich, Robert D. / Peters, Michael P. / Shepherd, Dean A., Entrepreneurship, 9th ed., McGraw-Hill, New York, NY 2012 • Kuratko, Donald F., Entrepreneurship: Theory, Process, Practice, 8th ed., South-Western, Mason, OH 2009 • Leach, J. Chris / Melicher, Ronald W., Entrepreneurial Finance, International Edition, 4th ed., South- Western, Hampshire 2012 • Osterwalder, Alexander / Pigneur, Yves, Business Model Generation, Wiley, Hoboken, NJ 2010 • Ries, Eric, The Lean Startup, Crown Business, New York, NY 2011 • Smith, Janet Kiholm / Smith, Richard L. / Bliss, Richard T.,Entrepreneurial Finance – Strategy, Valuation, and Deal Structure, Standford University Press, Stanford, CA 2011 • Stokes, David / Wilson, Nick, Small Business Management and Entrepreneurship, 6th ed., South-Western, Hampshire 2010 • Taleb, Nassim Nicholas, The Black Swan – The Impact of the Highly Improbable, revised ed., Penguin, London 2010 • Timmons, Jeffry A. / Spinelli, Stephen, New Venture Creation – Entrepreneurship for the 21st Century, 9th ed., McGraw-Hill, New York, NY 2011 Startnowhow09.02.2017 4
  5. 5. PRE-INVESTMENT:HOWWESELECT BIC Angels Deal Selection: First Round / Selection Committee 09.02.2017 5BIC Angels Investments 20 + / month MARKETRESEARCH
  6. 6. PRE-INVESTMENT:HOWWESELECT BIC Angels Deal Selection: Second Round / Monthly Investor Meeting 09.02.2017 6BIC Angels Investments 4 / month MARKETRESEARCH
  7. 7. MARKETRESEARCH Industry and Market Analysis 09.02.2017 7Startnowhow • Industry and Market Analysis • Market growth • Markets in infant stage with high growth means a more promising opportunity • Market size • Markets with high (future) size is more interesting • Market structure • Concentrated vs. fragmented market – fragmented market offers more opportunities for future growth and for gaining market share • Margin analysis • Is typical gross margin high or low – high gross margin means more exciting opportunity • Demographic analyses may be useful • Separation into general (national) and local / regional analysis may be useful if target market is local / regional • Inability to define target market in established terms (e.g sector definitions according to chambers of commerce) may mean „very innovative“ (not possible to define market, or too many markets can be defined), but first impression for investors is „very risky“ • Sources of information: Public information, typically governmental statistics, statistics of chambers of commerce and industry associations
  8. 8. MARKETRESEARCH Classification Guidelines for the VOS Indicator 09.02.2017 8Startnowhow Source: Leach / Melicher, Entrepreneurial Finance, p.55
  9. 9. MARKETRESEARCH Market Information Needs - Example 09.02.2017 9Startnowhow Source: Hisrich / Peters / Shepherd, Entrepreneurship, p.196
  10. 10. MARKETRESEARCH Market Segmentation and Customer Analysis 09.02.2017 10Startnowhow • Market segmentation • How is the industry currently segmented? • How will the market be segmented in the future? • Problem with developing markets: assumpitons necessary about future market segmentation (example: mobile phone market in early stage – forecast market segmentation into smartphones vs. simple mobiles possible?) • Analysis of market entry barriers • Target groups • B2C markets: Consumer behavior characteristics (demographic / psychographic / geographic information) help separating target groups • B2B markets: Knowledge of industry, size of firms, frequency of purchase, price sensitivity, organizational contact • The more details you know about your customer, the more promising the venture • VC: „The most impressive entrepreneur is the one who comes to my office not only knowing the customer in terms of demographics and psychographics, but can also name who that customer is by address, phone number, and e-mail address.“ • Sources of information: More difficult, sometimes own market research necessary– but avoid „paralysis by analysis“
  11. 11. MARKETRESEARCH Consumer Behavior and Market Segmentation 09.02.2017 11Startnowhow Source: Kuratko, Entrepreneurship – Theory, Process, Practice, p.296
  12. 12. MARKETRESEARCH Consumer Behavior and Market Segmentation 09.02.2017 12Startnowhow Source: Kuratko, Entrepreneurship – Theory, Process, Practice, p.298
  13. 13. MARKETRESEARCH Sustainable Competitive Advantage • Necessary: Resource bundle that is valuable, rare and inimitable • Resources are all inputs to production process – land, raw materials, machinery, other fixed assets, patents, licenses, employee skills, management skills, knowledge, ... • Resource bundle is valuable when it enables the firm to pursue opportunities, neutralize threats, and offer products and services that are valued by customer • Resource bundle is rare when it is possessed by few, if any, (potential) competitors • Resource bundle is inimitable when replication of this combination of resources would be difficult and / or costly for (potential) competitors. • Source: Hisrich / Peters / Shepherd, Entrepreneurship, pp.67-70 09.02.2017 13Startnowhow
  14. 14. MARKETRESEARCH Competitor Analysis 09.02.2017 14Startnowhow • Necessary information about existing / potential competitors • Current strategy of each primary competitor • Products / services • Pricing strategy • Marketing and distribution strategies • B2B: Key customers • Sales, market share • Possible reaction to new market entry • Strenghts and weaknesses • Established analysis tool: Porter‘s Five Forces Model • Sources of information: • Public information (incl. Web, newspaper, databases, published financial statements, analyst reports) • Market research, e.g. Contact to sources of public information • Internal competitor information (example: job interviews with potential employees)
  15. 15. MARKETRESEARCH Porter‘s Five Competitive Forces 09.02.2017 15Startnowhow Taken from: Volkmann / Tokarski / Grünhagen, Entrepreneurship in a European Perspective, p.132
  16. 16. MARKETRESEARCH Consumer Behavior and Market Segmentation 09.02.2017 16Startnowhow Source: Hisrich / Peters / Shepherd, Entrepreneurship, p.226
  17. 17. BIC ANGEL INVESTMENTS Dr. Joachim Behrendt Phone: +90 212 328 1939 Fax: +90 212 328 1933 www.bicangels.com http:/twitter.com/joachimbehrendt http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a Email: j.behrendt@bicangels.com

×