How To….Evaluate Industry, Market and Competition 10/3/2017 How To….Evaluate Industry, Market and Competition Aziz Makhani, Certified Business Advisor Washington Small Business Development Center Jan 4, 2016
OC How To Series… Sep: Commercialization Overview 10/3/2017 OC How To Series… Sep: Commercialization Overview Oct 6: Protect Intellectual Property Nov 6: Corporate Structure for Startups Dec 3: Business Plan
OC How To Series… Jan 21: Finance a Startup 10/3/2017 OC How To Series… Jan 21: Finance a Startup Feb 4: Evaluate Industry, Market and Competition Mar 3 and Apr 7: WSU Commercialization Successes
Agenda About SBDC Steps to Evaluation: RCA 10/3/2017 Agenda About SBDC Steps to Evaluation: RCA Industry, Market and Competion Q & A
Agenda The Washington SBDC is a partnership between and funded by the U.S. Small Business Administration, Washington State University and other Washington Institutions of higher education and economic development organizations.
Washington SBDC Centers
Topics we address Financial and Cost Analysis Business Valuation Buying or Selling a Business Loan Packages Marketing Personnel and Management Issues Business Plan Review Strategic Planning Government Contracting Leasing Ecommerce Exporting
Three Steps Rceahers Ceoaltl Azleayn
Three Steps Research Collate Analyze
Business Model
Group of target customers What is? Business you are in Group of target customers Market Industry
Why research and what should I look for? Evaluate overall relevance Determine potential profits Examine internal forces
Industry Analysis Threat of Entry – Barriers to Entry Intensity of Rivalry Among Existing Competitors Pressure from Substitute Products Bargaining Power of Buyers Bargaining Power of Suppliers
Threat of Entry Economies of Scale Product Differentiation Capital Requirement Switching Costs Access to Distribution Channels Government Policy
Industry Analysis – Oreck Corporation Founded 1963; Bankruptcy: 2013 Lessons Learned: Retail Brick and Mortar Distribution Domestic Manufacturing Marketing by the CEO
Market Analysis Information about your target market Distinguishing characteristics How much market share can you gain? Pricing and Gross Margin targets
Competitive Analysis Market Share Strengths and Weaknesses How important is your target market to your competitors? Are there indirect or secondary competitors?
Competitive Analysis – Main Competitors Main competitors small to medium sized players; established presence in the market. Major threat from Company ABC best positioned to compete with largest market share (at 20%).
Competitive Analysis – Products and Services The closest resemblance to our own product comes from Company 2, because their scale of operation and sales force is similar to our own. Unfortunately the product that is best positioned in the market is that from Company ABC.
Web Resources https://www.sba.gov/category/navigation-structure/starting-managing-business/managing-business/business-guides-industry https://www.sba.gov/content/market-analysis https://www.sba.gov/tools/sizeup
Additional Resources Competitive Strategy: Techniques for analyzing Industries and Competition Michael E. Porter, 1980 The Startup Owner’s Manual Steve Blank and Bob Dorf, 2012 The Wall Street Journal Small Business Guidebook Colleen Debaise, 2009
Additional Resources, cont’d Small Business Bible Steven D. Strauss, Third Edition
Thank you! Mark Deming, Brand Manager Northwest River Supply mdeming@nrs.com 208.883.4452 Moscow, ID Aziz Makhani, Certified Business Advisor Washington Small Business Development Center aziz.makhani@wsbdc.org http://wsbdc.org/ 509.335.8081 Pullman, WA
10/3/2017 Thank you!