3. Hasegawa & Witt, ASIAN BUSINESS AND MANAGEMENT
Powerpoint Presentation Production by Tanmaya Mohapatra 3
The diversity present in the
ASEAN business system and its
potential for growth
ASEAN organizations and the challenges
associated with resource control
The causes of hierarchical
leadership
The importance of stakeholder
management and
reciprocation
Opportunities to enhance its
human capital
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5. DEFINITION OF USER AND CUSTOMER
By defining users and customers, you can find right directions on whose problems
to solve.
ﾷ It's important to know whose problem it is, and if
it makes sense when it's resolved.
•- If you define a user as a person using a product
or service and a customer as a person who
purchases the product or service, the relationship
between the two does not always match.
•- For example, if a child is using a mobile phone
and their parents are paying the cost, from the
point of view of a carrier, the child can be viewed as
a user, but the actual customer will be the parent.
•- In general, if someone is a customer, you can
think that he/she might be a user, but this is not
always true. You should think about whether the
problem you are trying to solve is the user's
problem or the customer's problem.
Source:https://image.slidesharecdn.com/customersvsend-users-150204044841-conversion-gate01/95/whats-the-difference-between-customers-vs-users-
1-638.jpg?cb=1423025474
6. • Startup ecosystems are controlled by both external and internal factors.
• Internal factors act as feedback loops inside any particular startup ecosystem.
• They not only control ecosystem processes but are also controlled by them. While some of the resource inputs are generally controlled by external processes like financial
climate and market disruptions, the availability of resources within the ecosystem is controlled by every organization's ability to contribute towards the ecosystem.
BUSINESS AND
NON-BUSINESS
CULTURE
• Religion
• Political philosophy
• Economic philosophy
• Education
• Language
• Social structure
7. •THINKING FRAMEWORK: BUSINESS MODEL
ﾷ A business model is a tool of thought, not a tool to make a report to create
outcomes. It should be used to organize thoughts and seek new directions.
8. •BUSINESS MODEL: CUSTOMER SEGMENTS
ﾷ The market is usually divided into several customer segments, and at least
one business model must exist for each customer segment.
•Market
•Customer
Segments
•Customer
Segment
9. •BUSINESS MODEL FRAMEWORK
ﾷ There are many tools to build a business model, but the framework simplifies
your thinking and lets you expand it with the tools.
ﾷ The true competitive advantage of
products/services can be created through
'the differentiated way (how) that creates
value (what) for customers (who)'.
•- Differentiation depends on how well the
product is fit in the market considering
who/what/how and also positioning means a
trade-off to make a differentiation with
competitors.
•- Therefore, also the strategic
•positioning creates fitness and
trade-off when the business model is
designed and the product/service is
planning based on it.
ﾷWho is the customer?
•Who
ﾷ Why can't
competitors
imitate?
•Why
•WhatDifferentiation
•(Fit
•n
e
s
s
/
T
r
a
d
e
-
O
f
f
)
•How
ﾷWhat value to provide? • How to create value?
10. •BUSINESS MODEL CANVAS
ﾷ Business Model Canvas is a template used for developing new business
models and documenting existing ones.
ﾷThe nine "building
blocks" of the business
model design template,
so-called the Business
Model Canvas, were
initially proposed in 2005
by Alexander
Osterwalder, based on
his earlier work on
business model
ontology.
Source: https://upload.wikimedia.org/wikipedia/commons/thumb/1/10/Business_Model_Canvas.png/1200px-Business_Model_Canvas.png
11.
12. •VALUE PROPOSITION CANVAS
ﾷ The VPC was developed to complement the BMC and focuses on understanding
customers problems and producing products or services that solve them.
Source:
https://www.garyfox.co/wp-content/uploads/2020/03/Value-Proposition-Canvas-1024x724.png
13. •BUSINESS MODEL FRAMEWORK: DE-COMPOSITION
ﾷ If we are trying to match the business model framework in the business
model canvas, the result seems to be like that.
Source: https://upload.wikimedia.org/wikipedia/commons/thumb/1/10/Business_Model_Canvas.png/1200px-Business_Model_Canvas.png
•H o w W h a t W h o
14. •Business Model Framework: De-Composition
ﾷ Let’s move to the Who section.
Source: https://upload.wikimedia.org/wikipedia/commons/thumb/1/10/Business_Model_Canvas.png/1200px-Business_Model_Canvas.png
•How What Who
15. •Thinking about Customers
ﾷ We can think of customers in more detail and probably can divide them into
customers and non-customers.
ﾷ Customers actually pay when they use
products or services, and the companies mainly
focus on them for sales or marketing.
ﾷ Non-customers can be viewed as customers
that the company intends to exclude or are not yet
targeted.
•‒ In the former case, they can be scened as
customers on the list, so-called Black List. In the
latter case, it can be seen as a potential customer
that has not yet been acquired because the
company's capabilities have not been reached, and
if the company's capabilities become stronger in
the future, the potential customers can be turned
into customers.
Source:
https://www.flickr.com/photos/moreinterpretations/5681949404/
16. •Customers, Customer Segment and Market
ﾷ In general, when a customers make a group, turns into a customer segment and
these customer segments form a market again.
•Customer Group
(Segment)
•Who
17. •Estimation: Visitor Number
ﾷ Sometimes, when doing market research, it's not always possible to know the
exact numbers, and in this case, the estimation may be helpful to understand the
market.
ﾷ A few years ago, you might hear news of
hundreds of thousands of people visiting the
beaches and shores to enjoy their vacations during
the summer holiday season. The question here is:
How were they able to know the number?
•- Perhaps, you might know that the number
was calculated by estimation rather than an
accurate number because no one actually counts
the number of people coming to the beaches and
shores.
•- One of the easiest ways to estimate the
number is by dividing the beach into grids and
count how many people are in individual grids.
Average people number in a grid multiplied by the
number of grids leads to the total number of
visitors. If so, does it really make sense to you?
18. •Market Size
ﾷ TAM, SAM and SOM are acronyms that represents different subsets of a market.
•TAM (Total Addressable Market)
•SAM (Service Addressable Market)
•My Company
•SOM (Service Obtainable Market)
19. •Business Model & Biz Plan
•Strategies, business models, and even business plans have a well-connected
link organically.
•Market Biz Model
•Strategy
•Customer
Segments
•Biz Plan
•Customer
20. •Characteristics of Customer Segment
ﾷ The customer segment has the following characteristics, and it is necessary to set
the customer segment in consideration of these characteristics.
•Descriptions
•Measurability
•Accessibility
•Substantial
•Differential
•Actionable
ﾷMust be measurable, and to increase the measurability, it may be
necessary to establish a DB for customers (market size, purchasing power,
etc.)
ﾷ Should be accessible through distribution channels at low cost and effort
to consumers
ﾷMust be large enough in order to obtain sufficient profits
ﾷ Be distinguished conceptually and should respond differently to
different marketing mix elements and marketing programs.
ﾷMust be able to develop effective marketing programs to target in detail
21. •Persona
ﾷ The customer segment is a group of customers with various characteristics, so virtual a
person, so-called ‘Persona‘ represent it and is needed to design the marketing plan.
ﾷ The Latin word probably derived from the
Etruscan word "phersu", with the same meaning,
and that from the Greek πρόσωπον (prosōpon). Its
meaning in the latter Roman period changed to
indicate a "character" of a theatrical performance
or court of law, when it became apparent that
different individuals could assume the same role
and that legal attributes such as rights, powers,
and duties followed the role.
ﾷ In marketing, personas are used to define a
customer's personality within a customer
segment, which allows us to imagine what the
customer does and what tastes they have.
Source:
https://en.wikipedia.org/wiki/Persona
http://www.linkedmediagroup.com/wp-content/uploads/2014/04/persona.png
22. •Customer Segment & Persona
ﾷ Multiple personas might exist within one customer segment, and the characteristics
of the customer segment can be effectively derived by setting the personas.
•Source:
•Market
•Strategy
•Customer
Segments
•Customer
23. •Business Model Framework: De-Composition
ﾷ Let’s move to the What section.
Source: https://upload.wikimedia.org/wikipedia/commons/thumb/1/10/Business_Model_Canvas.png/1200px-Business_Model_Canvas.png
•How What 1 Who
24. •Problem / Solution Fit
ﾷ After finding the customer's problem and a solution, it need to draw an
appropriate conclusion among these solutions and make a value proposition
based on it.
25. •Problem Definition
ﾷ The types of problems can be divided into two, and these problems are so-called
‘Pain Killer’ and ‘Vitamin’ in the startup field.
•Desired
Output
•Normal
Output
•Undesire
d Output
•Motivator
Factors
•Hygiene
Factors
•Opportuni
ty (Wants)
•Threat
(Needs)
26. •Description
•Benefit Cost
•Source:
•Value Proposition
ﾷ The value proposition can be thought by benefits and cost perspectives and using
this, positioning is performed from a strategic point of view.
ﾷwant high quality even
though it is expensive (e.g.
Haagen-Dazs ice cream)
ﾷwant superior quality at
the same price (e.g. Toyota
Lexus)
ﾷwant products of the same
quality at a lower price (e.g.
general discount stores)
ﾷwant to buy slightly
lower quality & products
much cheaper (e.g. Aldi)
ﾷwant to buy better quality
& products cheaper (e.g.
Category Kill)
•More for More
•Value Proposition
•More for Same
•The Same for Less
•Less for Much
Less
•More for Less
27. •Value Proposition: Product Planning
•Using physical attributes, the company makes a product/service which turns into
a customer’s needs/wants. and this process is called product planning.
•Design
•Promotion •Payment
•Brand
•Surface
Attribute
•Quality of service
•Price
•Product
•Delivery
•Product variety
•Strength
Attribute
•Place
•Relationship
•Shape
Attribute
•Product Development
•Benefi
t / Cost
•Customer
Needs/Wants
•Physical Feature
•.
.
.
•Total Offering
28. •Variety
•Design Brand Product Relati Delivery Paym Quality of Etc. Total
•onship
•...
•10%
•4%
•Product variety
•Relationship
ﾷ There are not very many KBFs, and it is usually about 10
to 15 factors. In this case, when Pareto's law can be applied,
there are three major KBFs found. Design is the most
important purchasing decision factor.
•Source:
•Value Proposition: Key Buying Factors
ﾷ One of the most important things to consider in product planning should find factors
that help customers make a decision, and this is called the Key Buying Factor.
•Service
•ent
•Key Buying Factors Analysis
•Design
•Payment
•12%
•Quality of service
•Delivery
•8
•2
•4
•10
•100
•Brand
•1
•3
•80
•40
•30
•20
•10
•0
•90
•80
•70
•60
•50
•60%
•2%
•1%
•3%
•12
•60
29. •Blue Ocean Strategy
ﾷ In 2005 W. Chan Kim and Renée Mauborgne published the Blue Ocean Strategy
which with over one million copies sold has become a ‘must-read’ book.
ﾷ Chan Kim and Renée Mauborgne’s Strategy
Canvas is a central diagnostic tool and an action
framework that graphically captures, in one simple
picture, the current strategic landscape and the
future prospects for an organization.
•‒ A strategy canvas is basically a line graph that
plots functions/factors against importance for a
company or an organization and then overlays
competitors or industry benchmarks. In this way,
information can be built to help formulate a
competitive strategy.
Source:
https://www.blueoceanstrategy.com/
30. •Source:
•Strategy Canvas: Value Curve
ﾷ A value curve is the graphic depiction of a company’s relative performance across
its industry’s factors of competition.
•Strategy Canvas
•Raise
•Eliminate
•Different
•Create
•Reduce
•5 point scale
•4
•0
•5
•3
•2
•1
•Factor1 Factor2 Factor3 Factor4 Factor5 Factor6 Factor7
•Competitor A Competitor B Company As-is
•Average
31. •Business Model Framework: De-Composition
ﾷ Let’s move to the How section.
Source: https://upload.wikimedia.org/wikipedia/commons/thumb/1/10/Business_Model_Canvas.png/1200px-
Business_Model_Canvas.png
•H o w W h a t W h o
32. •How to Compete
ﾷ At the execution stage, it is necessary to think about how to compete, and the following
factors might be used to create a competitive landscape.
ﾷ When establishing a business strategy, both
offensive and defensive should be considered,
and too reckless attacks or extremely passive
defensive attitudes should be avoided when
competing.
•- Differentiation: Used as a tool to attack
opponents in competition, and seeks strategic
plans mainly from the perspective of Product
Leadership, Cost Leadership, and Customer
Intimacy.
•- Barriers to entry: Used as a tool to defend
against opponents' attacks in competition, and
establishes strategic plans through
laws/institutions (licenses, etc.), technology
(patents), investments, and brands
Source
:
http://images.mentalfloss.com/sites/default/files/styles/article_640x430/public/fightclub_1.jpg
33. •What is ‘Barriers to entry’?
ﾷ Industry sectors also have their own barriers to entry that stem from the nature of
the business as well as the position of powerful incumbents.
ﾷ In theories of competition in economics, a
barrier to entry, or an economic barrier to entry,
is a fixed cost that must be incurred by a new
entrant, regardless of production or sales
activities, into a market that incumbents do not
have or have not had to incur.
ﾷ Because barriers to entry protect incumbent
firms and restrict competition in a market, they
can contribute to distortionary prices and are
therefore most important when discussing
antitrust policy. Barriers to entry often cause or
aid the existence of monopolies and oligopolies,
or give companies market power.
Source:
http://images.mentalfloss.com/sites/default/files/styles/article_640x430/public/fightclub_1.j
pg
34. •Sources of barriers to entry
ﾷ There are several sources of barriers to entry:
ﾷ Economies of scale: These are declines in
the unit costs of a product as the absolute
volume per period increases.
ﾷ Capital requirements: These are the financial
resources required for infrastructure, machinery,
R&D and advertising.
ﾷ Switching costs: These are one-time costs the
buyer faces when switching an existing
supplier’s product to a new entrant (for
example, employee retraining, new equipment,
technical support).
Source:
https://www.economicshelp.org/wp-content/uploads/2012/11/barriers-to-entry.png
35. •Barriers to entry: Evaluation
ﾷ It is necessary to consider various aspects such as price/cost aspect and time
aspect in order to check whether the entry barrier is properly established.
ﾷ Price/cost aspect: high cost structure, low
profitability - less attractiveness to the market
- loss of competitors' willingness to enter
ﾷ Time aspect: delay in entry time - fading of
differentiated competitive factors - weakening
of competitors' competitiveness - decreased
market responsiveness (Startups often have to
compete at speed because they lack capital
compared to large companies, and it is
desirable to use time lag in competition)
Source: https://www.flickr.com/photos/68634595@N00/116220689
36. •Business Model: 5W1H
ﾷ Looking at the business model in terms of 5W1H, it may be easier to understand
when needed to create and use a business model because it is quite natural.
Source:
https://akinjidepetersdotcom.files.wordpress.com/2015/02/root-cause.jpg
37. •Strategy & Business Model
ﾷ The two things share some key components, so it can be said that they look like
both sides of a coin. The relationship can be thought of as follows:
•Where When Why What
•Strategy
•How
•Who
•Business Model
•Biz Plan
Source:
