How does the learning curve influence your success?

Objectives Examine learning curves in the context of competition Explore the impact of learning curves on your success as an entrepreneur

Exploring competition & opportunity Assessing industry conditions and status provides a starting point to understanding competition and entrepreneurial opportunities Recognize opportunities and out-compete existing companies by understanding the: learning curve, complementary assets; and reputation effects.

The Opportunity Analysis CanvasTM Industry Condition Entrepreneurial Motivation Competition Learning curve Complimentary assets Reputation effects Entrepreneurial Mindset Industry Status Opportunity Identification Entrepreneurial Behavior Value Curve Macroeconomic Change

Defining learning curves “Rate of learning with experience (time)” Influenced by what you know today, as well your interests, commitment, and resources to learn new things in the future.

The learning curve advantages existing companies versus entrepreneurs The learning curve allows existing companies to use their experience operating in an industry to improve their efforts for success You are unlikely as a novice entrepreneur to start at the same point on the learning curve as an established company, which has through its past operations and moved up the learning curve through trial and error.

Be different Fortune 500 Companies

Learn from prospective customers Onyemah, V., Pesquera, M. R., & Ali, A. (May 2013). What Entrepreneurs Get Wrong. Harvard Business Review, 74-79.

Learning resources General tips to get you started Inc.com’s Guide to Conducting Competitive Research Entrepreneur.com’s Guide to Market Analysis University resources Go to the University library to see if these databases are available to you: IBIS World Hoovers Company Information Factiva

Learning resources (Con’t) Other resources that exist are particularly useful for market size estimations and competitive research Eurostat European Census and Statistics SBDC’s Small Businesses Market Information US Census’ U.S. Population Estimations and Statistics Claritas’ U.S. Market Segments by Zip Code Use the "Zip Code Lookup" feature to get market demographic information by zip code for common market segments Use the "PRIZM" feature on the left hand side for common segments or explore general segments via the menu at the top of the page

Summary Do your research and embrace learning To climb the learning curve quickly, it’s advantageous to pursue entrepreneurial ideas in: new industries and/or new markets. Minimize the gap between your knowledge and your existing competitors’ knowledge