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Market Opportunity & Analysis Part 2. CPS 181s Jan 21, 2003. Future Case Studies. 500 words initial post and each response Raise questions, point out contradictions What was fascinating, what did you struggle to understand? Extrapolate future areas of inquiry

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Market Opportunity & Analysis Part 2

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Market opportunity analysis part 2

Market Opportunity & AnalysisPart 2

CPS 181s

Jan 21, 2003

Future case studies

Future Case Studies

  • 500 words initial post and each response

  • Raise questions, point out contradictions

  • What was fascinating, what did you struggle to understand?

  • Extrapolate future areas of inquiry

  • Focus on ideas, depth and critical analysis

  • Use other resources for research



  • Each Case Study (9) - 40 points

  • Case Discussion Leader - 50 points

  • In-Class Assignments - 80 points

  • Class Participation - 50 points

  • Midterm Project Progress Report - 100 points

  • Final Project Presentation - 400 points

Total = 1040 points

Tools techniques to determine where will business compete

Tools & Techniques to Determine Where Will Business Compete?

  • Customer needs?

  • Financial opportunity?

  • Competitors?

  • Company resources or partners to fulfill needs?

Framework for diagnosing market opportunity

Framework for Diagnosing Market Opportunity

What is the Playing Field for the Business?

Identify Unmet and Underserved Needs

5 Conditions

To Satisfy

Identify Target Customer Segments

Company’s Capabilities that Bring Opportunity or Advantage

Assess Competitive, Technical and Financial Opportunity Attractiveness

Make Go / No Go Assessment

Does segmentation matter

Does Segmentation Matter?

  • Can you give an example of a company that segments the market?

  • Do you feel segmentation increases profits?

  • Does it make any difference in the on-line world?

  • Does it provide any value to the customer?

  • Does segmentation facilitate customization or personalization?

Honda vs barneys

Honda vs Barneys

Which is better analysis vs no analysis

Real goal is to reach critical mass with key customer segment in as short a time as practical

No-analysis blind alleys, partner negotiations, and customer complaints bog a company down if they don’t sort out a clear opportunity path from the start

Second and third movers capitalize on the mistakes of other to get more customers for less cost

No-analysis may feel like moving fast without assessment, but actually generating more heat than light

Speed not precision (=lost time)

Network economics capitalize on first-mover momentum

Rapidly connect and lock in large numbers of customers

Large customer base provides lower costs

Old rules no longer apply, a company is better off learning by doing

Which is Better? Analysis vs No Analysis

Trapped value vs new value

Create more efficient markets

Create more efficient delivery (value) system

Enable ease of access

Disrupt current pricing power (consumer power)

Customize offerings

Radically extend reach and access

Build community

Enable collaboration-across people, location, time

New functionality or experience

Trapped Value vs New Value

The consumer decision process

The Consumer Decision Process

Model of on line consumer behavior

Model of On-line Consumer Behavior



  • Segment Prioritization Chart?

Segment prioritization chart

Segment Prioritization Chart


Trip Purpose





Last Minute

All Other Trips

Business Trips

Students on Vacation

Students Going Home




Low – Middle Income / Not Frequent Fliers

Low / Mid Income on Getaways

Low / Mid Income Families on Vacation

Other Low / Mid Income on Vacation

Demographics and Behavior

Middle – Upper Income / Frequent Fliers

High Income Families on Vacation

Total Number of Trips = 45%–55% of the Market

High Income Non-Family Trips

Group Trips


= Approximately 45%–55% of the Total Market

= Primary Focus



  • Segment Prioritization Chart

    • Analyze which customer segments to pursue



  • Segment Prioritization Chart

  • Competitor Maps (egg diagram)

Competitor profiling eastman kodak

Competitor Profiling — Eastman Kodak

  • HP

  • Olympus


  • Snapfish

Eastman Kodak

  • Fuji


Purchase Accessories

Purchase Film

  • Moto Photo

Take Pictures

Store Pictureson CD

Direct Competition


Digitally ManipulatePictures


  • Seattle Filmworks

  • AdobeSystems

Download and Choose Pictures to Print

Print and Receive Pictures

  • Geocities

  • Shutterfly

  • District

  • Ofoto

  • Snapfish

  • HP



  • Segment Prioritization Chart

  • Competitor Maps (egg diagram)

    • Underserved areas

    • competitor strengths

    • potential collaborators



  • Segment Prioritization Chart

  • Competitor Maps (egg diagram)

  • Competitor Mapping to Selected Customer Segments

Competitor mapping to selected segments for priceline

High performance level

Medium performance level

Low performance level

Competitor Mapping to Selected Segments for Priceline



  • Segment Prioritization Chart

  • Competitor Maps (egg diagram)

  • Competitor Mapping to Selected Customer Segments

    • Unconstrained opportunities

    • segment interactions

    • growth potential



  • Segment Prioritization Chart

  • Competitor Maps (egg diagram)

  • Competitor Mapping to Selected Customer Segments

  • Opportunity Assessment Chart

Priceline com overall opportunity assessment Overall Opportunity Assessment



  • Segment Prioritization Chart

  • Competitor Maps (egg diagram)

  • Competitor Mapping to Selected Customer Segments

  • Opportunity Assessment Chart

    • Overall effect considering all factors

    • Managers assess magnitude of company’s impact

Go no go assessment opportunity story rough draft of business plan

Go/No-Go Assessment (Opportunity Story) =Rough Draft of Business Plan

  • Describe target segment within selected value system

  • Articulate high-level value system

  • Spell out customer benefits

  • Identify critical capabilities and resources needed to deliver customer benefit

  • Categorize critical capabilities as in-house, build, buy, or collaborate

  • Describe how company will monetize the opportunity (i.e., how it will capture some portion of the value that it creates for its customers)

  • Provide an initial sense of the magnitude of the financial opportunity

Schwab com launched january 15 1998

Schwab.comLaunched January 15, 1998

Schwab unmet and underserved needs 1997 timeframe

Schwab: Unmet and Underserved Needs (1997 Timeframe)

Process Steps

Unmet and Underserved Needs

Plan Savings Goal

  • Planning tools to simplify goal setting

Determine Optimal Asset Allocation

  • Education on investing

Receive Ideas and Recommendations

Research Stocks

  • Aggregation of investment information

Place Order

  • Place order and track status anytime, anywhere

Track Portfolio Performance

  • Access real time account information

Receive Dividends

Sell Stock

  • Place order and track status anytime, anywhere

Tax Reporting

  • Download to tax software

Schwab opportunity attractiveness vs resource availability

Schwab — Opportunity Attractiveness vs. Resource Availability








Opportunity Attractiveness








Resource Availability

Note: Opportunity attractiveness based on competition level and opportunity financials

Schwab resource availability

Capability highly addressing segment need

Capability moderately addressing segment need

Capability not addressing segment need

Schwab Resource Availability


Company Capabilities

Partner Capabilities


Effectiveness of different segmentation methods

= Low

= High

Effectiveness of Different Segmentation Methods

Segmentation Methods

Segmentation Criteria

Needs based segmentation charles schwab

“Saving For a Goal”

“Financial Planning”


  • Saving for retirement

  • Saving for college

  • Saving for house down payment

  • Estate planners

  • Tax planners

  • Trust fund managers

  • Hobby investors

  • Active traders

Needs Based Segmentation: Charles Schwab

Schwab’s market segments fall into three categories

Source: Jeffrey Veen, Hot Wired Style, Monitor Analysis

Schwab segmentation 1997 timeframe

Secondary Priority

High Priority

Tertiary Priority


Schwab Segmentation (1997 Timeframe)

Other White Collar

Blue Collar


University Student

High Net Worth (<$1M)

Buy and Hold

Frequent Trades

Current Offline Schwab Customer

< 30


> 30

No Children

Not Schwab Customer



Mature( > 55)

Schwab competitor map to segments

High performance level

Low performance level

Schwab — Competitor Map to Segments

Medium performance level

Schwab com overall opportunity assessment Overall Opportunity Assessment

Case study virtual vineyards

Case Study – Virtual Vineyards

  • What are the market conditions that allow VV to provide value to suppliers? To end-users. What end-users does VV target?

  • What is the business model of VV?

  • How has VV established its acknowledged dominance of virtual retailers in this category? What are the resources that VV has used to develop this dominance?

  • What are the attributes of a high quality retail service when it is delivered screen-to-screen rather than face-to-face?

  • What additional actions might VV take to enhance their position in the marketplace?

  • What are the major problems confronting online firms when they attempt to craft a unique, sustainable business model?

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