1. Innovation Workout
Entrance Strategy

2. To Present Prepare for your group to present In 5-10 minutes
Describe your product, current competitors, history and future on 1 slide
Present a maximum of 1-2 slides per task (hand written)
For each of your conclusions from Tasks #1 to #7
For sake of time, please to not include anything else

3. Setup for the Workout Pick a specific consumer product:
Choose a product where you have a thorough knowledge of the market and competitors
This is likely to be something that would be involved in a sport, hobby, job or other personal interest
Quickly think through:
Why customers buy this product (be honest)
How customers buy this product (i.e., the consumption chain)
Complementary products required to market this product
Competences your firm needs to compete

4. Formulate an entrance strategy
Setup for the Workout : Assume your company is going to produce its own brand of this product
Formulate an entrance strategy
Anticipating competitive behavior and response
Planning to learn when uncertainty is high
Assessing your project as it unfolds
Rather than meeting objectives set in advance
Remember
You can’t be sure that your competitors will react as you expect
You can’t be sure that technology, markets, etc. will pan out as you hope (or promise)
You don’t want to be responsible for meeting ‘the numbers’
Where you have extreme uncertainty

5. Task #1: State your Vision
First step in an entrance strategy is your ‘vision’
… your assessment of what the competitive future will look like
What will this market look like in.5, 1, 5, 10 years
What will this product look like in.5, 1, 5, 10 years

6. Task #2: Describe the Business Model
Tell the ‘Story’ of how this Product becomes a profitable business
Set target revenue and cost ‘Numbers’ for.5, 1, 5, 10 years
How is your Business / Product different than everyone else’s

7. Task #3: List your major assumptions
In any highly uncertain venture
You make considerable numbers of assumptions
What Assumptions will you make about your Market
How will you test your Assumptions
Your business plan should organized around
converting the maximum number of assumptions
to knowledge
at minimum cost

8. Task #4: Specify your Major Milestones
What will be your Milestones=Deliverables in.5, 1, 5, 10 years
Milestones are points in time at which products are delivered and key assumptions are tested
Usually these are events, e.g. complete design
Sequence these to minimize cash burn and corporate expectations while you are learning
No Milestone should occur without triggering a test of assumptions

9. Past is indicator of Future Future is Volatile
For Task #4, Rememger that Sustainability is Industry Specific Different Industries Display Different Rates of Change in the Market
Past is indicator of Future
Future is Volatile

10. Task #5: Choose your first 3 Customers
Specify your first 3 customers
Your Lead-steer customers
Opinion leaders in their industries
Highly regarded by peers
Customers with blogs, review or other sites
These will help you to test your assumptions about attribute maps and consumption chains
Risk Low
Risk High
Benefit Low
2nd Priority
(make risk of not buying higher than of buying)
Forget it!
(postpone until value or risk
Benefit High
1st Priority
(easy sell)
3rd Priority
(‘if it doesn’t work, send me the bill’)

11. Task #6: Who are your Combatants
Task #6: Who are your Combatants? (or sleeping dogs, bystanders and skirmishers)?
List them by name
State why you categorize them as such
Usually because of their market power, the coreness of the product to their capabilities, and their interest in this market
Capacity to produce is High
Capacity to produce is Low
Commitment to enter market is Low
Sleeping Dogs
(track them)
Bystanders
(monitor)
Commitment to enter market is High
Combatants
(Your main focus)
Skirmishers
(selective in their responses due to resource limits; monitor)

12. Task #7: Choose your Entry Tactics
Choose One (only) of either an Offensive, Defensive or Deception tactic from the following list, and explain why this is the best tactic for you and your product to enter the market
Objective: Avoid debilitating competitive interaction
By using speed, skill and surprise
Use your imagination, innovation, creativity to outmaneuver your competitors
Rather than your scarce resources
Assets should be bought only as a last resort
Fixed commitments should be kept variable
By paying per use, or by subcontracting

13. Entry Tactics Offensive tactics Deception Tactics Defensive tactics
Rapid dominance
Planned attack / frontal assault
Flanking maneuver
Pincer movement
Double envelopment
Attrition warfare
Interdiction / control of lines of communication and supply
Preemptive attack
Raiding
Divide and Conquer
Guerrilla Warfare
Defensive tactics
Mutual support
Scorched earth policy
Booby traps
Center Peel
Trench warfare
Hedgehog defense
Deception Tactics
Stealth and Camouflage
Disinformation
Feint
Force multiplication

14. To Present Prepare for your group to present In 5-10 minutes
Each of your conclusions from Tasks #1 to #7
Describe your product, current competitors, history and future on 1 slide
Present a maximum of 1-2 slides per task (hand written)