Framework for market opportunity l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 12

Framework for Market Opportunity PowerPoint PPT Presentation


  • 175 Views
  • Updated On :
  • Presentation posted in: Industry

Framework for Market Opportunity. Seed Opportunity in Existing New Value System. Identify Unmet and Underserved Need(s). Identify Target Segment(s). Declare Company’s Resource-Based Opportunity for Advantage. Assess Competitive, Technological, and Financial Opportunity Attractiveness.

Download Presentation

Framework for Market Opportunity

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Framework for market opportunity l.jpg

Framework for Market Opportunity

Seed Opportunity in Existing New Value System

Identify Unmet and Underserved Need(s)

Identify Target Segment(s)

Declare Company’s Resource-Based Opportunity for Advantage

Assess Competitive, Technological, and Financial Opportunity Attractiveness

Make “Go / No-Go” Assessment


Framing the market opportunity l.jpg

Framing the Market Opportunity

  • MSN CarPoint identified an opportunity to leverage the Internet to deliver customer value in the car industry

Leverage the Internet to Improve the Consumer Car-Buying Process

  • The retail car-buying process was frustrating and inefficient:

    • Little information available to the consumer

    • Bargaining with salesperson viewed as an hassle

    • Long process overall

Car Buyers Are Dissatisfied With Current Retail Car-Buying Process

  • MSN CarPoint selected two primary target segments for its service:

    • “The intimidated by the process”

    • “The information seekers”

Shoppers Who Feel Intimidated by Sales People and Look for More Efficient Way

  • MSN CarPoint could leverage Microsoft’s expertise in software development, its brand name and its multitude of online properties

Microsoft’s Software and Free Placement on All Its Websites

  • Competition was getting fierce with more and more online car services entering the market…

  • But the financial opportunity was large: 66% of new car buyers were estimated to use online services in 2000

How Big Is the Online Car-Buying Market? Who Are CarPoint’s Main Competitors?

  • In 1996, the first version of CarPoint was shipped

  • By 1998, CarPoint was driving $5 million in car sales a day

Make “Go / No-Go” Assessment


Slide3 l.jpg

  • Competition Occurs Across Industry Boundaries Rather Than Within Industry Boundaries

    • Web-enabled business models often lack theconstraints of physical product manufacturing and service delivery

    • Can match value creation from the customer’s perspective

    • Ex. CarPoint: customer can

      • Research

      • Purchase

      • Finance

      • Obtain insurance

    • all at one place

  • Lesson: Do not limit opportunity assessment to narrow or traditional definitions of industry or value systems


Slide4 l.jpg

  • Competitive Developments and Responses are Occuring at an Unprecedented Speed

    • Advances in technology and the adoption of Creative Business Models are occuring rapidly!

    • Ex. Browser Wars

      • Microsoft vs. Netscape in late ‘90s

    • Q: How often do you think new versions appeared?

    • A: Approximately every six months.

  • Lesson: Keep abreast of important trends that could redefine opportunity attractiveness.


Slide5 l.jpg

  • Consumer Behaviour is Easier to Influence and Change

    • Companies can introduce products that lead to new behaviour and customer requirements

    • What companies have greatly influenced the music industry and how?;What technology have these companies taken advantage of?;What other industries have also been affected by this trend and how?


Slide6 l.jpg

  • Competition occurs between alliances of companies rather than between Individual Companies

    • Ex. Browsers depend on operating systems, PCs and modem technologies

    • Co-opetition

      • Companies as both competitors and collaborators


Slide7 l.jpg

  • Industry Value Chains, or Systems are Rapidly being Reconfigured

    • What are some ways in which the Internet has allowed businesses to reconfigure customer interaction?

      • 24/7 interactions

      • Increasing the level of information throughout the value chain

      • Eradicates or reduces the cost of some value chain stages

    • Ex. Job Placement / Executive Recruiting industry

      • Now a two-way exchange (employers search resumes; job seekers search postings)

        • Greatly enhances the access and reach of individuals in this marketplace


Slide8 l.jpg

  • Value Systems

    • An interconnection of processes and activities within and among firms that creates benefits for intermediaries and end consumers

    • entire chain of suppliers, distributors, competitors, buyers and intermediaries

    • Often a value system can be reinvented in the networked economy


Three value types for new business possibilities l.jpg

Three Value Types for new business possibilities

1. Trapped Value

  • Unlock trapped value by creating:

  • A. more efficient markets by lowering search and transaction costs

    • (How does Lending Tree (www.lendingtree.com) do this?)

  • B. more efficient value systems by compressing or eliminating steps in a current value system

    • ex. distribute in-house, technical documents over the web


Three value types for new business possibilities10 l.jpg

Three Value Types for new business possibilities

2. New-to-the-World Value

  • Enhance an existing offer or become the basis for a new offer by:

  • A. Customizing Offerings

    • Weather.com

    • How does Quicken.com do this?

  • B. Building Communities

    • What are some community building tools

    • look at myfamily.com for examples

    • Q: What marketing lever is best exploited through community building?

    • A: Viral Marketing

  • C. True New-to-the-World Functionality or Customer Experience

    • Most famous example is Napster with file-sharing (peer-to-peer) and the MP3 file format

    • How does net2phone.com create true new-to-the-world functionality


Three value types for new business possibilities11 l.jpg

Three Value Types for new business possibilities

3. Hybrid Value

  • synergy between both Trapped and New-To-The-World Value by:

  • A. Disrupting Current Pricing by creating transparency in the retail industry and offering unbiased information

    • What are two ways in which mysimon.com does this?

  • B. Enabling Ease of Access by creating portal sites (ex abebooks.com) or internet channels for existing stores (ex. Target.com)

  • C. Radically Extending Reach by extending the boundaries of an existing market or creating a new market by delivering more cost-effective reach

    • any distance learning site


Exhibit 2 2 three types of basic value l.jpg

Exhibit 2–2: Three Types of Basic Value

  • Trapped Value

  • New-to-the-World Value

  • Disrupt pricing

  • Ease access

  • Radically extend reach

  • Customize offerings

  • Build community

  • Introduce new functionality or experience

  • More efficient markets

  • More efficient value systems

  • Hybrid Value


  • Login