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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,Footnote,Source:Sources,Subtitle,Unit of measure,AT-CZG002-120199Coyne-MSTR,Ideas and Strategy,PRESENTATION TO*BUSINESS PLAN COMPETITION PARTICIPANTS,AT-CZG002-120199Coyne-MSTR,Today,Developing an idea,Assessing your idea,Describing your strategy,A couple of wrinkles,1,AT-CZG002-120199Coyne-MSTR,Developing an idea,Why brainstorming usually fails,3 frameworks,Product trees,4 killer questions,The 5Cs model,2,AT-CZG002-120199Coyne-MSTR,Unexpected users,Heavy users,Potential users blocked by one obstacle,Potential users who differ in one way from current users,Creative bundling to eliminate complements,Radical distortions of key value equation components,New uses for existing products,New users for existing products,New ways to meet existing needs,Stimulating new needs,.radically modify existing products,.generate radical increases in existing product sales,.develop new products,Search for killer product ideas by exploring opportunities to.,Product idea tree,3,AT-CZG002-120199Coyne-MSTR,What would it take to make my product at half the cost?,Radical distortion of key value equation components,Can I reduce by half or double my distribution cost?,Could I offer my product at 5 times the cost if it had greater feature/function?,Could I double my product depth or cut breadth in half?,What input,if reduced by half the cost,would allow me to cut my price 20%?,Question,Existing example,Southwest Airlines,PC clones,Personal shopper,Mail order,Premium ice cream,PetSmart,Baby Superstore,Zinc in batteries,Low-rate credit cards for high credit rating,Potential idea,6 packs of single-use,lightweight,disposable umbrellas,Discount realtors,A bank with home cash delivery,Home decorator superstore,Industrial pawn shop for small business lending,Product idea tree,4,AT-CZG002-120199Coyne-MSTR,1.What is the biggest hassle about this product?,For what subgroup of users.,For what subgroup of usages.,Etc.,2.What do the Batman movie,roller blades,and Ben and Jerrys have in common?,3.How would I do things differently if I had perfect information?,4.Where are the search,order entry,and tracking costs a large percentage of total costs?,4 killer questions,5,AT-CZG002-120199Coyne-MSTR,Raw material suppliers,Volume,Costs,Concentrate surplus from suppliers,2,Costs,Compete for surplus,1,Client,OEM,Costs,Concentrate surplus from channels,2,Retailer,Capture surplus from customers,3,Price,Cooperate to capture surplus,5,Create new demand,4,The 5Cs model,6,AT-CZG002-120199Coyne-MSTR,Today,Developing an idea,Assessing your idea,How powerful?,How large?,Describing your strategy,A couple of wrinkles,7,AT-CZG002-120199Coyne-MSTR,Create a new standard of performance that previously was not recognized as important but becomes one of the critical buying factors for a target market,Invent:create a new standard,Accelerate pace of innovation in a critical performance dimension by 3-5 years,Innovate:radically improve an existing important standard,Unique performance,Performance enhancement,8,AT-CZG002-120199Coyne-MSTR,*,Compared to The Gap,*Compared to IBM and Compaq,Percent below competitors,50,50,20,20,Home Depot,Amazon,Staples,Office Depot,Old Navy*,CompUSA,Dell*,Gateway*,Commodore,America West,People Express,E-Plus,Orange,Mobilcom,Retailers,PC manufacturers,Airlines,Telecom,Iomega Zip Drive,Other,Average price discounts of 30-45%,20-50,20-80,40,50,30,40-50,50-70,60-70,30-50,20-30,15,Price-based value propositions must offer extreme discount to market,9,AT-CZG002-120199Coyne-MSTR,Primary effects,Secondary effects,Estimating market size,10,AT-CZG002-120199Coyne-MSTR,Today,Developing an idea,Assessing your idea,Describing your strategy,A couple of wrinkles,11,AT-CZG002-120199Coyne-MSTR,A strong business concept.,Where to compete,How to compete,.driving a reinforcing business system,Deliver,Communicate,Describing your strategy,12,AT-CZG002-120199Coyne-MSTR,Product range,Target customers,Channels,Geography,Where to compete,13,AT-CZG002-120199Coyne-MSTR,“,The compelling reason why the target customer should buy your product instead of alternatives”,Value proposition,“,Why competitors cannot copy you once it is obvious you are succeeding”,Sustainable competitive advantage,+,How to compete,14,AT-CZG002-120199Coyne-MSTR,Reinforcing business system,Provide the value,Design product,process,Procure,manu,-facture,Distribute,Service,Price,Sales message,Adver-tising,Promotion,PR,Communicate the value,15,AT-CZG002-120199Coyne-MSTR,Today,Developing an idea,Assessing your idea,Describing your strategy,A couple of wrinkles,16,AT-CZG002-120199Coyne-MSTR,Real value,Absolute resource scarcity,True network externalities,False value,“Controlling the space”,How valuable is the first mover advantage?,17,AT-CZG002-120199Coyne-MSTR,Levels of rollout aggressiveness,High,(“Big bet”),Low,(“boot,strapper,”),Replicator,Scaler,Local,National,Natural business scale,Establ
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