Students should be able to:
Understand the meaning and types of barriers to entry and exit and how they affect the behaviour of firms.
Discuss the significance of barriers to entry and exit to firms operating in different market structures.
Students should be able to:
Understand the meaning and types of barriers to entry and exit and how they affect the behaviour of firms.
Discuss the significance of barriers to entry and exit to firms operating in different market structures.
Students should be able to:
Illustrate and perform simple calculations using total revenue, average revenue and marginal revenue.
Draw and interpret revenue curves
Understand the relationships between total revenue, price elasticity of demand and marginal revenue
Students should be able to:
Understand and distinguish between productive and allocative efficiency
Know that the minimum point on the average total cost is the most productively efficient point and that allocative efficiency occurs where price is equal to marginal cost
Understand the meaning of inefficiency e.g. X-inefficiency
Competitive Strategy Porter with Patent Wars Game Samsung Vs AppleWissam Saleh
A chapter summery of Porter's great book : "Competitive Strategy" with a simple game of patent wars ( Prisoners Dilemma ) applied on the case of Samsung and Apple .
Students should be able to:
Illustrate and perform simple calculations using total revenue, average revenue and marginal revenue.
Draw and interpret revenue curves
Understand the relationships between total revenue, price elasticity of demand and marginal revenue
Students should be able to:
Understand and distinguish between productive and allocative efficiency
Know that the minimum point on the average total cost is the most productively efficient point and that allocative efficiency occurs where price is equal to marginal cost
Understand the meaning of inefficiency e.g. X-inefficiency
Competitive Strategy Porter with Patent Wars Game Samsung Vs AppleWissam Saleh
A chapter summery of Porter's great book : "Competitive Strategy" with a simple game of patent wars ( Prisoners Dilemma ) applied on the case of Samsung and Apple .
Applying Porter’s Five Forces To Your Business & Product by Wayne Chen Pocket...Wayne Chen
Learn how to quickly apply Michael Porter's Five Forces for your business and product strategy to capitalize in the market today. By Wayne Chen @MobiWayne @WayneChenNY @PocketSQRMedia www.pocketsquaremedia.co
Chapter 18
Market Testing
*
What Is Market Testing?Market testing is not test marketing!Test marketing is one of many forms of market testing -- others include simulated test market, informal sale, minimarket, rollout.Test marketing is also a much less common form now due to cost and time commitments and other drawbacks.
*
Where We Are Today in Market TestingScanner systems allow for immediate collection of product sales data.Mathematical sales forecasting models are readily available that can run on a relatively limited amount of data.We are “building quality in,” testing the marketing components of the product at early stages (ads, selling visuals, service contracts, package designs, etc.) rather than testing the whole product at the end.Increased competition puts greater pressure on managers to accelerate product cycle time.Market testing is a team issue, not solely in the province of the market research department.
*
Market Tests Must Have TeethManagers must be willing to take action based on market test results.Negative market test results cannot be ignored just because the team is reluctant to kill the CEO’s pet project!Insights gained at this stage include:Solid sales forecasts with greater accuracy.Diagnostic information to revise or refine any aspect of the launch.To gather this information and not use it is asking for trouble!
*
Decision Matrix on When to Market Test
Cost and Time
Savings
High
Low
Stages of the product development cycle
High
Low
Scope of Learning
and Accuracy
Figure 18.1
*
How Market Testing Relates to the
Other Testing Steps
Figure 18.2
*
Two Key Values Obtained from Market TestingSolid forecasts of dollar and unit sales volume.Diagnostic information to allow for revising and refining any aspect of the launch.
*
Deciding Whether to Market TestAny special twists on the launch? (limited time or budget, need to make high volume quickly)What information is needed? (expected sales volumes, unknowns in manufacturing process, etc.)Costs (direct cost of test, cost of launch, lost revenue that an immediate national launch would have brought)Nature of marketplace (competitive retaliation, customer demand)Capability of testing methodologies (do they fit the managerial situation at hand)
*
Types of Information That May Be LackingManufacturing process: can we ramp-up from pilot production to full scale easily?Vendors and resellers: will they do as they have promised in supporting the launch?Servicing infrastructure: adequate?Customers: will they buy and use the product as expected?Cannibalization: what will be the extent?
*
Methods of Market Testing, and Where Used
Figure 18.3
*
Speculative SaleOften used in business-to-business and consumer durables, similar to concept and product use tests.Give full pitch on product, answer questions, discuss pricing, and ask:“If we make this product available as I have described it, would you buy it?”Often conducted by regular sa ...
Crafting A Business
PORTER’S
Industry Ana
Bargaining Power
Suppliers are POWER
− There is a credibl
suppliers.
− Suppliers are con
− There is a signifi
− The customers ar
What does the bargai
SmallBizU
Plan http://www.smallbizu.org
FIVE FORCES WORKSHEET
lysis Model
of Suppliers
FUL if…
e forward integration threat by
centrated.
cant cost to switch suppliers.
e powerful.
Suppliers are WEAK if…
− The product is standardized. There are many
competitive suppliers.
− They are supplying commodity products.
− There is a credible backward integration threat by
purchasers.
− There are concentrated purchasers.
− The customers are weak.
ning power of suppliers in your industry look like?
Online eLearning Classroom
Crafting A Business Plan
http://www.smallbizu.org
Threat of New Entrants
Threat of new entrants is LOW if…
− There is patented or proprietary know-how.
− There is difficulty in brand switching.
− There are restricted distribution channels.
− There is a high scale threshold.
Threat of new entrants is HIGH if…
− There is common technology.
− There is little brand franchise.
− Distribution channels are easily accessible.
− There is a low scale threshold.
What does the threat of new entrants within your industry look like?
Competitive Rivalry Within Industry
Competitive rivalry within an industry is LOW if…
− There are few players in the industry.
− Players have different strategies.
− Differentiation between competitors and their
products are high.
− There is little to no price competition
− There are high market growth rates.
− Barriers for exit are low.
Competitive rivalry within an industry is HIGH if…
− There are many players of about the same size.
− Players have similar strategies.
− There is not much differentiation between players
and their products.
− There is much price competition
− Low market growth rates (growth of a particular
company is possible only at the expense of a
competitor).
− Barriers for exit are high (e.g. expensive and
highly specialized equipment).
What does the bargaining power of customers in your industry look like?
Crafting A Business Plan
http://www.smallbizu.org
Threat of Substitutes
Threat of substitutes will be LOW if…
− There is strong brand loyalty.
− There are tight or strong customer relationships.
− Switching costs for customers are high.
− The relative price compard to performance of
substitutes is high.
Threat of substitutes will be HIGH if…
− There is little to no brand loyalty.
− There are loose customer relationships.
− Switching costs for customers are low.
− The relative price compard to performance of
substitutes is low.
What does the bargaining threat of substitutes within your industry look like?
Bargaining Power of Customers
Customers are POWERFUL if…
− The ...
The words – price war – are enough to strike fear and dread into business people. It doesn’t matter if you are a big company or a small one. So why do companies start them, how should you respond, and how do they expect to win? If implemented correctly, a price war can be an effective pricing strategy.
This is the slide deck that goes along with this video: https://www.linkedin.com/pulse/business-idea-validation-7vs-simple-algebra-models-eric-tachibana
Warning: I don't think the slides make much sense without watching the video :)
This was a workshop done for the DBS Hotspot Accelerator program. The intent is to provide guardrails for new accelerator mentors who may have never mentored start-up teams and want to learn from all my many mistakes.
An Intro to the Financial Services IndustryEric Tachibana
The Financial Service Industry is one of the most attractive industries to target if you are a consultant. However, when selling into, or delivering for, Financial Services Institutions (FSIs), it is useful to have some understanding of how FSI business models work, and the unique requirements that drive their IT strategies.This deck is a living document that hopes to act as a primer for consultants who need to support FSI clients, but who may not have prior experience in the sector.
Making the most of your start up mentor workshop - dbs hotspot acceleratorEric Tachibana
This is a workshop for DBS Bank HotSpot Accelerator Program. It was built to help start-up founders select the right program mentor and get them off to an effective start!
Rethinking Annual Performance as WorkshopsEric Tachibana
Each year millions of line managers do performance reviews with each member of their team. Reviews are tricky, risky, and difficult to run as structured conversations, which is how they have always been run. This deck proposes that managers replace conversations with workshops, which are easier to run, generate more insights, and less likely to cause bad feelings as focus turns from attack-defend to collaborative problem solving.
This deck hopes to help workshop facilitators up their game. It argues that presentations are less effective than workshops as a means of teaching adults and gives some ideas of how to convert presentations into workshops
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
23. INTELLECTUAL PROPERTY
VULNERABILITIES
• Innovation around the patent
• Reverse engineering
• Shameless piracy
• Prohibitive cost to enforce
• Inability to protect across all
jurisdictions
• Public disclosure of IP required in
registration
Leverage the government sponsored
monopoly privileges that come with
registering patents, trade marks, or
copyrights.
Competitors are blocked from using your
innovations without obtaining a license
from you to do so.
BACKGROUND
COMBAT STATS
Defence Strength LOW
Cost to Setup HIGH
Cost to Maintain MED
COMBAT RATING
LEGAL / GOV’T BARRIER
24. TRADE REGULATION
VULNERABILITIES
• Counter lobby
• Forfeit of future growth markets
If your competitors pay an additional 15%
import tax in order to sell into your
market, you're cooking on gas!
Similarly, if you can help design safety
regulations, subsidies, zoning, licensing
procedures, subsidies or other laws such
that your competitor products are
disadvantaged, you are also laughing all
the way to the bank.
BACKGROUND
COMBAT STATS
Defence Strength MED
Cost to Setup HIGH
Cost to Maintain MED
COMBAT RATING
LEGAL / GOV’T BARRIER
25. RECIPROCITY
VULNERABILITIES
• Be especially wary of jail time
• Reciprocity has a quick half-life. You
need to earn quickly and spend
quickly.
In many political contexts, firms use
lobbying, favours, outright bribes, or
other creative means to create reciprocity
debt with powerful market players. These
reciprocity debt pools can be called upon
when needed to address competitors in
creative ways.
BACKGROUND
COMBAT STATS
Defence Strength HIGH
Cost to Setup HIGH
Cost to Maintain MED
COMBAT RATING
LEGAL / GOV’T BARRIER
26. CONTROL RAW MATERIALS
VULNERABILITIES
• Competitor innovates an equivalent
product from different raw material
• Suppliers break their contract with
you
• Government intervention (anti-
competition law)
If you can control the raw materials
required for production, you control the
competitive landscape.
For example, if the product absolutely
requires Mangosteen extract to work,
and you have 10-year exclusive contracts
with 86% of the world's Mangosteen
farmers, then your competitors won't be
able to manufacture the product, as they
simply won't be able to purchase raw
material
BACKGROUND
COMBAT STATS
Defence Strength HIGH
Cost to Setup HIGH
Cost to Maintain MED
COMBAT RATING
SUPPLY CHAIN BARRIER
27. CONTROL TALENT
VULNERABILITIES
• Spin out start-ups
• Someone always can pay more or give
better perks
• High-flyers often don't get a long
• There are always new PhD's that put
your PhD's to shame
This is like control of raw materials, but
specific to knowledge industries like high-
tech, banking or pharma.
In this case, you hire all the PhD's in the
market so that competitors don't have
access to the specific brain power.
Then you comp them well and use bonus
payments, equity, patenting support, etc
to keep them locked-in
BACKGROUND
COMBAT STATS
Defence Strength LOW
Cost to Setup MED
Cost to Maintain MED
COMBAT RATING
SUPPLY CHAIN BARRIER
28. COST OF PRODUCTION
VULNERABILITIES
• Once you drop your price, you may
not be able to raise it again – you may
win the war, but what you win is a no
margin market.
• Niche or Blue Ocean Strategies
• Production / Manufacturing
Innovation
When you are big, and spending big wads
of cash, your costs go down. For example,
you get discounts for bulk ordering.
With a reduced cost model, you can drop
your price below what smaller
competitors can sustain.
You can also leverage specialized know-
how (which requires high cost/long time
to duplicate) or favourable geographical
location to reduce cost.
BACKGROUND
COMBAT STATS
Defence Strength MED
Cost to Setup HIGH
Cost to Maintain MED
COMBAT RATING
MANUFACTURING BARRIER
29. CONTROL MANUFACTURING
VULNERABILITIES
• Primarily works only for specialized
(non commoditized) manufacturing
processes
• Easy to have facilities break ranks
unless they are well locked-in by
contract or otherwise
The idea here is to control all the
factories that make your widget or you
control the technology required to
manufacture it.
BACKGROUND
COMBAT STATS
Defence Strength MED
Cost to Setup MED
Cost to Maintain MED
COMBAT RATING
MANUFACTURING BARRIER
30. SUNK COSTS
VULNERABILITIES
• Competitors may not always be
rational
If the manufacturing process requires
expensive start-up costs and because of
the nature of production, those assets
can not be redeployed to some other
production process, then entrants will be
wary to invest because they may end up
losing big.
BACKGROUND
COMBAT STATS
Defence Strength LOW
Cost to Setup HIGH
Cost to Maintain MED
COMBAT RATING
MANUFACTURING BARRIER
31. CONTROL RETAIL REAL ESTATE
VULNERABILITIES
• E-Commerce
• Multi-level Marketing
• Channel margin war
Why are there so many versions of
Colgate on the shelf at your
supermarket? It is not because they
actually have that many distinct client
segments.
It is so that they can pack the limited
shelf-space. If their competitors have no
shelves upon which to display their
products, nobody will be able to buy
them.
If you own shelf space your competitor is
blocked.
BACKGROUND
COMBAT STATS
Defence Strength HIGH
Cost to Setup HIGH
Cost to Maintain MED
COMBAT RATING
DISTRIBUTION BARRIER
32. CLIENT LOCK-IN: BRAND LOYALTY
VULNERABILITIES
• Brain rewashing
• It’s hard to brainwash in the first place
Brainwashing is great. With brand loyalty
lock-in, you convince your customers that
their very sense of self (self image or
personal brand) depends on your
product.
Without your product, or with another
product, they are just sneetches without
belly stars.
BACKGROUND
COMBAT STATS
Defence Strength HIGH
Cost to Setup MED
Cost to Maintain MED
COMBAT RATING
CUSTOMER BARRIER
33. CLIENT LOCK-IN: TYING
VULNERABILITIES
• Anti-competition laws
• Need a pretty powerful product Y
Tying happens when you force a
customer to buy Product X if they buy
Product Y. If Product Y is good enough, it
locks in Product Y.
BACKGROUND
COMBAT STATS
Defence Strength LOW
Cost to Setup HIGH
Cost to Maintain LOW
COMBAT RATING
CUSTOMER BARRIER
34. CLIENT LOCK-IN: SWITCHING COSTS
VULNERABILITIES
• Adaptors
• Signing “buy-out” bonuses
Make it financial difficult for a customer
who has already purchased your product
to switch to another one:
• Phone number portability
• Standards incompatibility &
proprietary formats/APIs
• Warranty on the whole, not the parts
• Points & rewards programs
• All or nothing service agreements
• Licensing terms
BACKGROUND
COMBAT STATS
Defence Strength HIGH
Cost to Setup LOW
Cost to Maintain LOW
COMBAT RATING
CUSTOMER BARRIER
35. NETWORK EFFECTS
VULNERABILITIES
• Susceptibility to trend setters and new
networks (Facebook vs MySpace)
A network effect occurs when customers
gain more value as more customers buy.
Once a network reaches critical mass, it is
hard for a customer to leave the network
unless all the other customers move too.
BACKGROUND
COMBAT STATS
Defence Strength HIGH
Cost to Setup MED
Cost to Maintain LOW
COMBAT RATING
CUSTOMER BARRIER
36. PSYCHE WARFARE: VAPOURWARE
VULNERABILITIES
• Clients may eventually see what you
are doing
• Lead users may still buy if they are too
excited to wait
You are a small start-up that has come up
with a cool new software product for
enterprises. Microsoft sees it and thinks
that it is a good idea, but it will take them
2 years to build, or they don't want to
build it & just want to squish you like a bug
so that the tech is killed in the womb.
They announce that the feature will be
supported in the next version of Windows.
Lies, damn lies, statistics….and marketing.
Will clients buy from you, or wait for MS?
BACKGROUND
COMBAT STATS
Defence Strength MED
Cost to Setup LOW
Cost to Maintain LOW
COMBAT RATING
GENERAL BARRIER
37. PSYCHE WARFARE: RETRIBUTION
VULNERABILITIES
• You have to always win
• New punks with no memory will come
eventually
Nobody wants to enter a bloody,
embarrassing battle (price or marketing
war). If you respond to the first few
competitors quickly, harshly, and with
deadly force, you'll develop a reputation
for retribution. Competitors will have
learned not to mess with you and will
self-divert to another market without you
actually doing anything
BACKGROUND
COMBAT STATS
Defence Strength MED
Cost to Setup HIGH
Cost to Maintain HIGH
COMBAT RATING
GENERAL BARRIER
38. INNOVATIVE SPEED
VULNERABILITIES
• Actually, you don't have the only
smart team
• The weight of operations will slow you
down in practice
• Talent poaching
• Key-man risk
• Burn out
Just innovate faster than your
competitors. You know, whip those
engineers until they bleed!!!
BACKGROUND
COMBAT STATS
Defence Strength LOW
Cost to Setup MED
Cost to Maintain MED
COMBAT RATING
GENERAL BARRIER
39. WAR CHEST
VULNERABILITIES
• Fight fire with fire – clash of the titansJust out spend! Having a big war chest is
its own barrier. You can just spend more
on everything – Marketing, R&D,
Manufacturing Infrastructure
BACKGROUND
COMBAT STATS
Defence Strength MED
Cost to Setup HIGH
Cost to Maintain HIGH
COMBAT RATING
GENERAL BARRIER
40. CARTELS & EXCLUSIVE DEALING
VULNERABILITIES
• Anti-competition lawJoin together independent business
organizations to regulate production,
pricing, and marketing of goods by the
members.
This can occur either vertically or
horizontally.
BACKGROUND
COMBAT STATS
Defence Strength HIGH
Cost to Setup LOW
Cost to Maintain MED
COMBAT RATING
GENERAL BARRIER
44. SHARE THIS DECK
& FOLLOW ME(please-oh-please-oh-please-oh-please)
stay up to date with my future
slideshare posts
http://www.slideshare.net/selenasol/presentations
https://twitter.com/eric_tachibana
http://www.linkedin.com/pub/eric-tachibana/0/33/b53