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Step 10: Define your Core
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Core is Different than Competitive Position Moat vs. Core Workshop
Outline Overview Examples of Core How to Define Your Core Core is Different than Competitive Position Moat vs. Core Workshop December 1, 2018
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What makes your business special? Much more introspective
Overview Core- something that allows you to deliver the benefits your customer values with more effectiveness than your competitors Your “secret sauce” What makes your business special? Much more introspective December 1, 2018
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What is it that you do better than anyone else?
Overview What is it that you do better than anyone else? What is it that your product does that your competitors cannot duplicate? (Or can’t easily duplicate) December 1, 2018
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Core provides a higher level of protection
Overview Core provides a higher level of protection Don’t want to work hard then allow someone else to come in and reap the rewards December 1, 2018
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Core is Different than Competitive Position Moat vs. Core Workshop
Outline Overview Examples of Core How to Define Your Core Core is Different than Competitive Position Moat vs. Core Workshop December 1, 2018
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Requires great thought There may be multiple options
Examples of Core Core is situational Requires great thought There may be multiple options December 1, 2018
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=> Company with the most users are the most valuable
Examples of Core Network Effect Company because the “standard” by achieving such a high level of critical mass in market that it does not make sense for customers to use another product (Metcalfe’s law) => Company with the most users are the most valuable Ebay, Linkedin, Facebook (not MySpace) December 1, 2018
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Have processes and culture focused on excellent customer service
Examples of Core Customer Service Have processes and culture focused on excellent customer service Allows you to retain customers (less churn) Customers become the salespeople via word of mouth Examples: Zappos, Costco, Nordstroms December 1, 2018
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Examples of Core Lowest Cost
Skills, relationships, processes, volumes, overhead, and culture to outcompete anyone else in market on cost E.g., Walmart, Honda December 1, 2018
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Become the best at developing and improve UX E.g., Apple
Examples of Core User Experience Become the best at developing and improve UX E.g., Apple December 1, 2018
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This is NOT an exhaustive list Key: your Core is clearly defined
Examples of Core Many, many others… This is NOT an exhaustive list Key: your Core is clearly defined Founding team aligned Always put core first Last line of defense against competition December 1, 2018
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Core is Different than Competitive Position Moat vs. Core Workshop
Outline Overview Examples of Core How to Define Your Core Core is Different than Competitive Position Moat vs. Core Workshop December 1, 2018
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Defining your Core is NOT easy. Requires introspection
How to Define your Core? Defining your Core is NOT easy. Requires introspection Cannot be an abstract intellectual exercise Should integrate many factors: What customer wants What assets you have What you like to do What competitors can do Financial goals December 1, 2018
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Once you define your Core, do not change it! Would result in time lost
How to Define your Core? Once you define your Core, do not change it! Would result in time lost Unlike other steps… December 1, 2018
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Three fundamentals of a strong Core: Unique Important Grows
How to Define your Core? Three fundamentals of a strong Core: Unique Important Grows December 1, 2018
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Three fundamentals of a strong Core:
How to Define your Core? Three fundamentals of a strong Core: Unique – difficult for anyone else to replicate Important Grows December 1, 2018
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Three fundamentals of a strong Core: Unique
How to Define your Core? Three fundamentals of a strong Core: Unique Important – ties directly to your ability to produce something that your target customers value highly Grows December 1, 2018
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Three fundamentals of a strong Core: Unique Important
How to Define your Core? Three fundamentals of a strong Core: Unique Important Grows – should increase in strength over time relative to competitors December 1, 2018
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Core is Different than Competitive Position Moat vs. Core Workshop
Outline Overview Examples of Core How to Define Your Core Core is Different than Competitive Position Moat vs. Core Workshop December 1, 2018
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Core != Competitive Position
Customers will NOT see your Core as the reason why they buy from you. Instead- they will look at competitive position (step 11) Core is how you differentiate yourself from competitors Cannot be easily replicated December 1, 2018
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Core != Competitive Position
Intellectual property is NOT a Core (generally) Patents are slow, static Markets are dynamic Important for biomedical startups (but not much else) December 1, 2018
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Core != Competitive Position
First-mover advantage is NOT a Core Company is successful from being first to market Most companies who are first to market end up losing to later entrant Helps find talent Helps w/ networking .. But is NOT a Core December 1, 2018
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Core != Competitive Position
Locking up suppliers is NOT a Core If you lock in exclusive deals with vendors.. Helps with competition .. But is NOT a Core (more of a moat) December 1, 2018
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Core is Different than Competitive Position Moat vs. Core Workshop
Outline Overview Examples of Core How to Define Your Core Core is Different than Competitive Position Moat vs. Core Workshop December 1, 2018
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A “moat” is a competitive advantage
Moat vs. Core A “moat” is a competitive advantage May slow down competitors, but can be overcome Moats are good, Core is better December 1, 2018
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Core is Different than Competitive Position Moat vs. Core Workshop
Outline Overview Examples of Core How to Define Your Core Core is Different than Competitive Position Moat vs. Core Workshop December 1, 2018
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Worksheet: Defining Your Core This is hard!
Workshop Worksheet: Defining Your Core This is hard! Keep in mind: Core is NOT a benefit Something internal, a key asset or capability E.g., benefit => lower time to market Core => technology that creates this benefit December 1, 2018
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