The Competition - ExL University 2-10-15

2
Why go to college?
• In 2012 75% percent of 193,000 U.S. students
entering college said a reason to go to college is
"to be able to make money."1
• 82% said being very well off financially is a very
important or essential personal goal.1
1 Higher Education Research Institute at UCLA, The American Freshman: National Norms Fall 2012, January 2013,
http://www.heri.ucla.edu/briefs/TheAmericanFreshman2012-
Brief.pdfhttp://www.heri.ucla.edu/briefs/TheAmericanFreshman2012-Brief.pdf (accessed July 28, 2014).

3
Skills most sought by employers1
• critical thinking
• problem-solving
• execution-focus
• communication
96% of higher ed. provosts said they were doing a
good job preparing students for success in the
work force.2
Only 11% of business leaders agreed. 2
1 National Association of Colleges and Employers, "The Skills and Qualities Employers Value Most in Their New Hires," Job
Outlook Survey 2014, http://www.naceweb.org/about-us/press/skills-employers-value-in-new-hires.aspx (accessed
9/6/14).
2 Grasgreen, A., “Ready or Not,” Inside Higher Ed., https://www.insidehighered.com/news/2014/02/26/provosts-business-
leaders-disagree-graduates-career-readiness (accessed 12/26/14).

4Please do not share outside the Dartmouth Community without permission.
Copyright G. Fairbrothers 2004-2014 All rights reserved.
February 10, 2015
Competition

Competition
“Competition brings out the best in products
and the worst in men.”
- - David Sarnoff, first president of RCA and pioneer in consumer television

Competition
• Who is the competition, present and future?

#5 – The Competition
• Don’t say, “no one!”

Welcome to
Krystyna
Miles
Winners of the
Phillip R. Jackson Engineering Sciences
Prize
Shinri Kamei
traybienllc@gmail.com
the way to serve.
An improved serving tray for higher efficiency and lower costs in
restaurants, catering businesses, casinos, and more.

Our solution is simple and easy to use
Laminated wood fiber:
dishwasher safe, durable
Patent pending
Same functionality as
standard tray: holds
plates, stemware,
glasses, cutlery
Clear Need | Market Opportunity | Moving Forward Tray Bien 10
Sustainable material

The Night RunnerTM
by Granite State Gear
The Headlamp
• Small beam
• Little light
• Bouncing
• Uncomfortable
• Limited peripheral vision
• Breath can fog up vision
The Night RunnerTM
Wide swath
Large amount of light
Stable
Comfortable and adjustable
Waist easily carries weight
Rechargeable battery (10 hrs)

• GOMOTION™ WORLD-WIDE LAUNCH AT
OUTDOOR RETAILER SUMMER MARKET,
AUGUST 9-12, July 4, 2007 - Dedham, MA
• GoMotion, Inc., a new company dedicated to
developing innovative, body-mounted lighting systems
and accessories for active-lifestyle enthusiasts,
announces its world-wide launch at the upcoming
Outdoor Retailer Show at the Salt Palace, August 9-12
in Salt Lake City, UT.

The Company
In 2006, Jonathan Craig and co-founder Bob Hunnewell
launched GoMotion, Inc.
Working with a team of engineers and designers, they
created a product line of body mounted lighting systems for
active outdoors people.
Designed with trail-runners, street runners, Nordic skiers,
hikers and walkers in mind.
GoMotions products are revolutionizing the
Outdoor Recreation industry.
http://www.gomotioninc.coml

14
Alternatives
Porsche Cayenne
Range Rover

King Arthur Flour, October 2008:
“Compared to what?”
Karen Gouse Colberg T’91, General Manager, King Arthur
Flour, January 27, 2009

The Competition
• What are your barriers to competition?
• How will you defend profits and market share?

17
Utility and Value
“The larger theme… is the ordeal of what could be
called "commodity hell," the place where executives
find themselves when they cannot convince customers
that their widgets or services are better than those of
their ever-burgeoning competitors. All they can say is:
"Yep, we got 'em too."
- - Todd G. Buchholz, “Drowning in Red Ink,” Wall Street
Journal, May 30, 2007; p. D8

18
Utility and Value
“The larger theme… is the ordeal of what could be
called "commodity hell," the place where executives
find themselves when they cannot convince customers
that their widgets or services are better than those of
their ever-burgeoning competitors. All they can say is:
"Yep, we got 'em too."
- - Todd G. Buchholz, “Drowning in Red Ink,” Wall Street
Journal, May 30, 2007; p. D8

Your value proposition can be your
competitive advantage

Possible components of a value proposition
• Product
• Price
• Access
• Service
• Experience

PRODUCT
• Cost of manufacturing
• Aesthetics
• Availability
• Emotional connection
• Useful life
• Guarantee
• Manufacturing
• Integration
• Follow on product
• Flexability
• Easy to find
• Performance
• Quality
• Features
• Brand
• Selection
• Search
• Ease of use
• Safety
• Durability and ease of repair

PRICE
• Financing
• Comparative
• Perception
• Relation to need
• Switching cost
• Margin
• Total cost of ownership
• One time price/structure
• Residual value
• Visible
• Consistent
• Reasonable
• Stable
• Comparable

ACCESS
• Channels
• Web presence
• Transportability
• Cost
• Delivery
• Regulation
• Limited Access
• Location
• Easy to find
• Convenience
• Timeliness

SERVICE
• Access to service
• Replacement
• Quality
• Customer care
• Warranty
• Maintenance contract
• Cost of service
• Automated
• Relationship with
customer
• Use service as prod dev
tactic
• Self help
• Ordering
• Delivery
• Return
• Use and repairs

EXPERIENCE
• Expectations
• Consistent experience
• Follow up/support
• Function and utility
• Emotion
• Fun
• Social proof

Competitive Advantages
• Quality (Mercedes)
• Customer service (Starbucks)
• Supply/inventory systems (WalMart)
• Location (Starbucks, Walmart)
• Design and functionality (IPod, iPhone)
• Market Segmentation (Bose)
• Scope of product line (Amazon.com)
• Product innovation (Medtronic)
• Effective sales force (Pfizer)
• Manufacturing capacity (Unilever – Take Control)
• Product selection (Tiffany’s, Home Depot-Lowes)
after Dorf & Beyers, Technology Ventures, 2005; p 72

Other barriers to competition
• Legal or regulatory (IP, licenses, leases)
• Economies of scale
• Access to resources, suppliers/distributors, or
capacity
• Technical expertise
• Branding
• First mover advantage

Barriers to competition
capacity
• Branding

Barriers to competition
capacity
• Branding – a result of success, not a cause

First Mover Advantage
• PIMS and ASSESSOR studies, 1980’s:
“market pioneers have enduring advantages in
distribution, product-line breadth, product quality, and
market share…”
Tellis, Gerard J. and Peter N. Golder, “First to Market, First to Fail? Real Causes of
Enduring Market Leadership,” Sloan Management Review; Winter, 1996; 37, 2, p. 65-75

Ever hear of this?
MPMan F10, Eiger Labs
1997

… or these?
MPMan F10, Eiger Labs
1997
Rio PMP300, Diamond Multimedia
1998
Personal Jukebox (PJB-100), Compaq
19992001
10 gb Creative
Nomad Jukebox
$269.99
2001
20 gb Rio Riot
$399

first mover advantage?
Apple, 2001

More than the IPOD
Piper Mobile (Mobius)
Thayer School 2000-2002

Apple – inventor of the PDA…
Apple: 1993-1998
Palm: 1996 –
Handspring: 1999-2003

First Mover Advantage
• PIMS and ASSESSOR studies, 1980’s:
“market pioneers have enduring advantages in
distribution, product-line breadth, product quality, and
market share…”
• Oops: data included only survivors;
lumped all early entrants together (first-
movers and early followers)

“First to Market, First to Fail”
• Failure rate of pioneers (first to sell in a
category) is 47%.
• Failure rate of fast followers is “minimal.”
• Pioneers are current leaders in only 11%
of the categories.
• Pioneers’ mean market share: 10%
• Fast followers’ mean market share: 30%

40
“First mover advantage” (?)
- the “mouse”, Doug Engelbart (Stanford Research Institute),
Bill English (Xerox PARC) (1951, 1963)
- Sketchpad, WIMP (Xerox PARC) (1968)
- U-matic, Betamax (Sony, 1969)
- CP/M (Gary Kildall, 1974)
- Visicalc (1978)
- Wordstar (1979)
- Prodigy (1988)
- Mosaic (1993)
- bot fed search engines (December, 1993): JumpStation,
the World Wide Web Worm, and the Repository-Based
Software Engineering (RBSE) spider
- Friendster

41
- the “mouse”, Doug Engelbart(Stanford Research Institute),
Bill English (Xerox PARC) (1951, 1963): Apple, Microsoft
- Sketchpad, WIMP (Xerox PARC) (1968): Apple, Microsoft
- U-matic, Betamax (Sony, 1969): JVC & VHS
- CP/M (Gary Kildall, 1974): MS/DOS
- Visicalc (1978): Microsoft
- Wordstar (1979): Microsoft
- Prodigy (1988): AOL
- Mosaic (1993): Microsoft
- bot fed search engines (December, 1993): JumpStation,
the World Wide Web Worm, and the Repository-Based
Software Engineering (RBSE) spider: Yahoo, Google…
- Friendster: MySpace, Facebook

- Chux disposable diapers  Proctor & Gamble
- Reingold Brewery’s Gablinger, Meister Brau light beers 
Miller Lite
- Royal Crown Diet Cola  Pepsi, Coke …
- Wisk liquid detergent  Liquid Tide
- California Cooler wine cooler  Gallo, Seagrams
- DHL  Federal Express
- 84 Lumber, Handy Dan, Builders Square  Home Depot,
Lowes
- Ampex video recorder  Sony, JVC, Matsushita
- Circuit City  Best Buy
- Book Stacks Unlimited (1992)  Amazon (1994)

43
Is there a first mover advantage?

44
Early Adopters
Early Majority
Laggards
NumberofCustomers
Time
Late Majority
Innovators
Adoption Lifecycle
Is there a first mover advantage?
Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers, Geoffrey
Moore, Harper Business Essentials, 1991, 1999

45
Early Adopters
Early Majority
Laggards
NumberofCustomers
Time
Late Majority
Innovators
Adoption Lifecycle
The “Race to the Chasm”
Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers, Geoffrey
Moore, Harper Business Essentials, 1991, 1999

“First mover advantage”
The early bird may get the worm…
… but the second mouse gets the cheese!

Competition
• What are your barriers to competition? (IP?)
• How are you different?
• A features table is a great tool.

PBK AMS Buysense Fedmarket/Bidengine
Services to government
end-user focused. Not dependent on government
buying bureaucracy.
yes no
focused more to vendors. Only
resource to buyers is a vendor
directory
a full-service resource to end-users and purchasing
agents alike
yes no no
accessible to all with no training or software
acquisition required
yes partially yes
query-based decision tree to analyze and define
purchase, assess compliance
yes no no
data base of pending purchases (for comparison
and bundling), GWACS and IDIQ's so purchaser can
search for existing resources
yes no GWACS
analyzes and certifies regulatory compliance;
provides full documentation of compliance actions and
status, including warrant of compliance
yes no no
capability to query FPR database and provide data
on recent comparable purchases
yes no no
active vendor searching and recruitment through
smart-searches, links to trade databases, trade
associations and evolving vertical networks.
yes no - catalog or link based
partial - prominent feature is a
vendor directory
assistance in preference goaling yes no no

PBK AMS Buysense Fedmarket/Bidengine Fedcenter (Digital Commerce) eFed (NIC Comerce) CommerceOne partnership
Manugistics - Intelisys
partnership
Public Sector IT Network US government
Digital Commerce filed 5/2/00 for IPO
announced March 28, 2000
(Lockheed, Boeing, Rayethon, etc.)
announced may 4, 2000
link to consortium companies (see
"other" at bottom). Focus on IT
sector only.
General features
one site for all of the public sector yes
state and local, institutions of
higher learning
partial - for all US some states and federal US all US and foreign
no - defense and aerospace marketplace
for manufacturers, suppliers, airline and
government customers
yes - claims to be one solution for all
b2b and b2g, all business sectors
all levels, US
entirely Web-based - no software to load, maintain,
upgrade; no training needed to start using
yes
appears to require some software
installation and training
mixture of platforms - links, CD's,
listings, Web-based.
yes no - proprietary software not announced
no - mainly proprietary software.
Online storefronts can be created
with browser-based tools.
no - link to consortium resources
active vs. passive searching; smart-search based -
no catalog listings to recruit and maintain
yes
passive - catalog listings by
vendors in their virtual mall
Bidengine is a specialized search
engine that sources procurement
pages containing opportunities to
sell products, including
government, buying cooperatives
and large companies.
no. Primarily a shopping marketplace.
no - buyer initiates searches of
supplier network
no
no - focused on trading partners
sharing, viewing and executing
decisions. Catalog/on-site storefront
focus.
no
Services to government
end-user focused. Not dependent on government
buying bureaucracy.
yes no
focused more to vendors. Only
resource to buyers is a vendor
directory
yes - focused primarily to credit-card
purchases
no - focuses on buying bureacracy no not announced no
a full-service resource to end-users and purchasing
agents alike
yes no no
yes - focused primarily to credit-card
purchases
not clear no no no
accessible to all with no training or software
acquisition required
yes partially yes yes no - proprietary software not announced no no
query-based decision tree to analyze and define
purchase, assess compliance
yes no no no "requirements analysis" no no no
data base of pending purchases (for comparison
and bundling), GWACS and IDIQ's so purchaser can
search for existing resources
yes no GWACS no no no no no
analyzes and certifies regulatory compliance;
provides full documentation of compliance actions and
status, including warrant of compliance
yes no no links to arnet and numerous FAR sites
"government purchase rules",
"business rule development"
no no
link to traditional law practice in
contracts and technology
capability to query FPR database and provide data
on recent comparable purchases
yes no no no ability to "conduct analyses" no no
links to marketing firm and network
of publications
active vendor searching and recruitment through
smart-searches, links to trade databases, trade
associations and evolving vertical networks.
yes no - catalog or link based
partial - prominent feature is a
vendor directory
no - oriented toward company listings.
Sells listed company products.
no no no
of publications
assistance in preference goaling yes no no no no no no no
bidder qualification yes no no no no no no no
presentation of demand aggregation opportunities yes no no no no no no no
bid definition yes yes? no no no no no no
bid publication yes yes? no no no no no no
bid solicitation yes no no no no no no no
bid collection (including auctions, spot markets) yes planned later no no no no no no
bid analysis and comparison yes planned later no no no no no no
approval process support, including tracking,
automatic notices for approval, and "nagging function"
yes purchase tracking planned no
stategov - developing requisitions,
generating RFQ's, order processing,
invoicing. fedcenter - none; shopping
environment
order status tracking not announced tracking purchases no
transaction closing support - automated payments,
etc.
yes planned later planned later
shopping environment only (federal);
transaction tracking and reporting
(stategov).
through partnerships with large
financial institutions, provides
seamless e-purchasing integration
with government purchase cards
yes? yes no
transaction memory for repeat purchases,
GWACS, IDIQ's
yes no no no
purchase histories, ability to
"conduct analyses"
not announced not announced no
Services to vendors
notice and active sourcing for government
opportunities
yes no yes - Bidengine no no not announced no
of publications
links and access to government buyers without the
need to post and maintain catalogs
yes
no - catalog based in a site
"community"
no - catalog based no - vendors maintain storefronts no not announced not clear
of publications
IDIQ and GWACS databases yes no GWACS no GWACS, IDIQ support not announced no no
FPR database query capability to see comp.
purchases in the recent past
yes no no no
purchase histories, ability to
"conduct analyses"
no no no
active recruiting into preference and goaling
opportunities
yes
no focuses demand to preferred
suppliers
no no no no no no
demand aggregation presents larger opportunities yes no no no no not announced no no
presentation of bundling opportunities yes no no no no not announced no no
indivdual technical/legal support in qualifiying and
bidding
yes no links and publications no no no no
e-commerce transaction modules cut costs and time yes planned later planned later
stategov - "catalog management and
transaction capability", "order
management and transaction tracking"
financial "e-purchasing integration" yes yes no
coordinated forecasting, planning and
replenishment for inventory and scheduing
management
yes planned later no no no no no no
support in legislative budgeting, appropriations,
earmarking
yes no no no no no no
availability of data and analyses of demand,
actions, trends, forecasts
yes
planned later - "enhanced
information for analysis and
decision support"
no no market research no no
links to marketing firm, research
firm, network of publications
Revenue models
1. Transaction-based charges yes paid by vendor no yes, on credit card sales yes? not announced no
2. Fee for listing/qualification and bid process
services provided
yes no
free vendor listing; fees for catalog
posting. Some sales of "how-to"
videos, etc.
fees to vendors to list, open storefronts not announced not announced at individual firms
3. Sell knowledge yes no no no market research not announced not announced at individual firms
4. Fees for repeat purchase facilitation/management yes no no not clear not announced not announced no
5. Fees for on-going communication between buyer
and seller to streamline inventory management and
manufacturing scheduling
yes no no no not announced not announced no
6. Fee for services tracking appropriations and
participating in the budget process
yes no no no no not announced at individual firms
7. Membership/subscription fees
maybe - not counting on
them
paid by government buyer yes yes not announced not announced no
The government has sites online and “restructuring” initiatives in
some areas, including CBDNet (Commerce Business Daily
Network), FACNET (Federal Acquisition Computer Network),
NAIS (NASA Acquisition Internet Service), EPS (Electronic
Posting System – a joint effort of NASA, GSA, the Air Force,
DOT, Dept. of Treasury, and DOC), DODBusOpps (Dept. of
Defense Business Opportunities), PRO-Net (Procurement
Marketing and Access Network – run by GSA), JECPO (Joint
Electronic Commerce Program Office – set up by DOD), and the
Federal Electronic Commerce Program co-chaired by the DOD
and the GSA. None is functional on a broad scale today, and
integration initiatives are conflicting with each other.
It is widely believed, even in some parts of the Congress, that
government may not successfully implement internet reform on
its own. There are three factors that impede the government's
progress in this area: (1) the bureaucracy - people refuse to
share information effectively; (2) government doesn't have the
critical mass of technology talent. It has been drained away to
industry; and (3) the billions of $ spent to date without
meaningful success. The solution needs to come from the
outside, driven by people with an insider's knowledge of
government.

Competition
• What are your barriers to competition? (IP?)
• How are you different?
• A features table is a great tool.
• Remember – competitors are a great source of ideas
and market research!

One Dartmouth
Entrepreneurial
Journey
Sarah Apgar T’11
Director of New Stores, Warby Parker
Founder & Chief Trainer, Fitfighter Training

US ARMY
2003-2004
Mosul, Iraq
ALPINE SUMMERTERM
2007-2009
Lenk, Switzerland
PRINCETON
1998-2002
Princeton, NJ
TUCK
2009-2011
Hanover, NH!
US ARMY
2002-2007
CO Springs, CO
WARBY & FITFIGHTER
2011-Now
Huntington, NY
My path less traveled….
1
2
3
5
6
4
52

54
≠
Eyeglasses should not cost $400+

Source: NFPA Statistics: http://www.nfpa.org/itemDetail.asp?categoryID=955&itemID=23605
Heart Attack
and Over-
exertion
54%
Falls and
Trauma
18%
Burns
8%
Asphyxiation
10%
Other
10%
Fire ground deaths by cause
2013
Sprain, Strain
53%
Wound, Cut,
Fracture
18%
Other
10%
Smoke
inhalation
7%
Thermal Stress
7%
Burns
6%
Fire ground injuries by cause
2013
58©2015 FitfighterTraining
Fire ground injuries are preventable

60
Eyeglasses can be sold online

64
Targeted fitness can be packaged

Physiology of 8 maneuver areas
ZERO TO SIXTY
65
©2015 FitfighterTraining
HOSE HANDLING
LADDERS FORCIBLE ENTRY
GEAR OPERATIONS
RESCUE
VENTILATION SEARCH

STEELHOSESTM
mimic tools
we already use
Circuit Training
prepares you
for the fire ground
+
66

74
http://www.nbcnews.com/watch/cnbc/inside-warby-parkers-innovative-strategy-396260931981

75Photo Credit: Smith & Brandon Online Blog

76Photo Credit: Parnters & Spade

79
The retail industry is trending agile over time

81
The retail industry is trending agile over time

Alchemy Works LA
2008 Henderson Dallas
Atlanta Buckhead
121 Greene St NYC
819 Washington St NYC
1209 Lexington NYC
357 Hayes Street SF
1422 Abbott Kinney Blvd LA
Imogene & Willie
Nashville
837 Armitage Chicago
2014 Stores and Concept Shops
Shop Good OK City
86
Warby Parker 2013-2014 Retail Expansion
83 Newbury Boston
Standard Hollywood LA
2398
973
17352807
2016
2065
1025362
750
2012

87
Our first stores reflect both brand and local culture
1209 Lexington Ave ~ NYC 819 Washington ~ NYC83 Newbury St ~ Boston
121 Greene Street ~ NYC Standard Hollywood Hotel, Los Angeles

#1
What are you willing to risk
for what matters to you?
94
My 6 Nuggets
(a lot!)

#2
What do you love
to work with?
95
(physical things I can touch)
My 6 Nuggets

#3
Entrepreneurship is not a career:
it’s a mindset
96
(it doesn’t have to be your idea)
My 6 Nuggets

#4
Whose dollars should
you spend first?
98
(the answer is not always the same)
My 6 Nuggets

#5
What does failing really mean?
99
(cherish and learn from your failures)
My 6 Nuggets

#6
Optimize every precious minute
with your Dartmouth resources
100
(drink a lot of cups of coffee!)
My 6 Nuggets

THANK YOU!
sar.apgar@gmail.com
719 649 3642
www.warbyparker.com
www.fitfightertraining.com
@warbyparker
@fitfightertrain
@sarahapgar
warbyparker
fitfightertraining
101

The Competition - ExL University 2-10-15

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