Chapter 2

Opportunity Opportunities New Product or Services Modify a product/service Combine two or more product/service Add to the product/service New Value Trapped value New to the world Hybrid

Market Opportunity Analysis Investigate opportunity in an existing or new value system Identify unmet or underserved needs Determine target customer segments Assess resource requirements to deliver the offering Assess competitive, technological and financial attractiveness of opportunity Conduct go/no go assessment

Investigate opportunity in an existing or new value system Value is your profit, convert value to business opportunities Three basic value types 1.Trapped value (unlock trapped value) a.Create more efficient markets B2C 1)Amazon. COM –Create more efficient value system B2B 1)Intranet 2.New to the world value a.Customize offerings 1)Mass customization b.Build community 1)Chat room, customer bulletin board c.Introduce new function or customer experience 1)Online shopping, 3D tour. 3.Hybrid value

Identify Unmet or Underserved Needs Ask your self. Are the added value being satisfied Study the customer decision-making process to find out unmet needs  Customer decision process 1.Origination 2.Information gathering a.What is current problem (can not get correct information, information is not current) b.Anything I can do to help (web sites to compare prices, select the best store) 3.Evaluation a.Which vendor has the best reputation, which book has good review 4.Purchase decision a.Online, coupons, promotion 5.Post purchase evaluation and behavior a.Online menu, instruction, registration, product updates

Determine Target Customer Segments You can not serve everyone, focus on the group that you have niche with. Segmentation: a process of grouping customers based on their similarities Approaches to market segmentation –Demographic (age, gender) –Geographic (country, city) –Behavioral (like online shopping) –Occasion (birthday cake, mother’s day, Halloween costume store) –Psychographic (lifestyle, personality, DINK) –Benefits: convenience (people tend to buy milk in 7-11 for economy looking for people with a purpose

Segmentation must be –Actionable Can be identified Readily reached Be described in terms of growth, size, profile and attractiveness –Meaningful Behave similarly Provide insight of customers’ motivation Correspond to the set of barriers that customers face when they buy or use a product or services How customers buy or use the product or service The segments are large enough to warrant a different set of action

Assess Resource Requirements to Deliver the Offering A good resource system to facilitate your offerings to your customers –Physical — virtual/physical world –Activities — capabilities –Supply — demand –Single — multiple

Assess competitive, technological and financial attractiveness of opportunity Competitive intensity Customer dynamics Technology vulnerability Microeconomics –Size, volume, level of profitability

Conduct go/no-go assessment