Market and Competitor Research

MARKET AND COMPETITOR RESEARCH Dr. Joachim Behrendt

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StartNowHow

• Open seminar series for active and prospective entrepreneurs

• 10 sessions on monthly basis until summer 2016

• Covers relevant theoretical and practical aspects of entrepreneurship

• Based on lecture „entrepreneurship“ @Bogazici University

• Based on experiences of entrepreneurs, investors, mentors and consultants

• Each session with guest speaker (entrepreneurs, investors, mentors, etc.)

• Language: English / Turkish

• Thursdays 17.15h – 19.30h

• Next session: Thu 11. February 2016

• Topic: Financial Planning for Startups

• Certificate provided for participants joining at least 70% of the sessions

• Early registration for each session required (eventbrite), limited capacity!

• Priority for regular participants

Startnowhow – Seminar 5 07.01.2016 2

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StartNowHow - Seminar Topics (preliminary)

1. Thu 1.10.15: The entrepreneurial ecosystem in Turkey

2. Thu 15.10.15. Entrepreneurship as a profession

3. Thu 12.11.15: Opportunity recognition and evaluation

4. Thu 10.12.15: Planning, developing and testing a business model

5. Thu 7.1.16: Market and competitor research

6. Thu 11.2.16: Financial planning for startups

7. Thu 10.3.16: Digital Marketing planning and control

8. Thu 14.4.16: Funding the startup – stage financing for ventures

9. Thu 12.5.16: The investment process – pitching, negotiations and termsheet

10. Thu 9.6.16: Success and failure as an entrepreneur


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Classification Guidelines for the VOS Indicator

07.01.2016 4 Startnowhow – Seminar 5

Source: Leach / Melicher, Entrepreneurial Finance, p.55

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Sustainable Competitive Advantage

• Necessary: Resource bundle that is valuable, rare and inimitable

• Resources are all inputs to production process – land, raw materials, machinery, other fixed assets, patents, licenses, employee skills, management skills, knowledge, ...

• Resource bundle is valuable when it enables the firm to pursue opportunities, neutralize threats, and offer products and services that are valued by customer

• Resource bundle is rare when it is possessed by few, if any, (potential) competitors

• Resource bundle is inimitable when replication of this combination of resources would be difficult and / or costly for (potential) competitors.

• Source: Hisrich / Peters / Shepherd, Entrepreneurship, pp.67-70


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Industry and Market Analysis


• Industry and Market Analysis

• Market growth

• Markets in infant stage with high growth means a more promising opportunity

• Market size

• Markets with high (future) size is more interesting

• Market structure

• Concentrated vs. fragmented market – fragmented market offers more opportunities for future growth and for gaining market share

• Margin analysis

• Is typical gross margin high or low – high gross margin means more exciting opportunity

• Demographic analyses may be useful

• Separation into general (national) and local / regional analysis may be useful if target market is local / regional (see previous slide)

• Inability to define target market in established terms (e.g sector definitions according to chambers of commerce) may mean „very innovative“ (not possible to define market, or too many markets can be defined), but first impression for investors is „very risky“

• Sources of information: Public information, typically governmental statistics, statistics of chambers of commerce and industry associations

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Market Information Needs - Example


Source: Hisrich / Peters / Shepherd, Entrepreneurship, p.196

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Market Segmentation and Customer Analysis


• Market segmentation

• How is the industry currently segmented?

• How will the market be segmented in the future?

• Problem with developing markets: assumpitons necessary about future market segmentation (example: mobile phone market in early stage – forecast market segmentation into smartphones vs. simple mobiles possible?)

• Analysis of market entry barriers

• Target groups

• B2C markets: Consumer behavior characteristics (demographic / psychographic / geographic information) help separating target groups

• B2B markets: Knowledge of industry, size of firms, frequency of purchase, price sensitivity, organizational contact

• The more details you know about your customer, the more promising the venture

• VC: „The most impressive entrepreneur is the one who comes to my office not only knowing the customer in terms of demographics and psychographics, but can also name who that customer is by address, phone number, and e-mail address.“

• Sources of information: More difficult, sometimes own market research necessary – but avoid „paralysis by analysis“

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Consumer Behavior and Market Segmentation


Source: Kuratko, Entrepreneurship – Theory, Process, Practice, p.296

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Source: Kuratko, Entrepreneurship – Theory, Process, Practice, p.298

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Competitor Analysis


• Necessary information about existing / potential competitors

• Current strategy of each primary competitor

• Products / services

• Pricing strategy

• Marketing and distribution strategies

• B2B: Key customers

• Sales, market share

• Possible reaction to new market entry

• Strenghts and weaknesses

• Established analysis tool: Porter‘s Five Forces Model

• Sources of information:

• Public information (incl. Web, newspaper, databases, published financial statements, analyst reports)

• Market research, e.g. Contact to sources of public information

• Internal competitor information (example: job interviews with potential employees)

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Source: Hisrich / Peters / Shepherd, Entrepreneurship, p.226

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Porter‘s Five Competitive Forces


Taken from: Volkmann / Tokarski / Grünhagen, Entrepreneurship in a European Perspective, p.132

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K StartNowHow - Outlook

• Today‘s materials will be made available to participants for downloading

• Next Seminar: „Financial Planning for Startups“

• Guest Speaker: Ebru Gürses (Partner, BIC Angel Investments)

• Thursday, 11.2.2016, 17.15 – 19.30h

• Don‘t forget to register early (eventbrite) - capacity 50 people!

• Priority for participants / registrants from today‘s session

• General rule: Allocation of seats according to participation

• Regular participation = certificate (70% participation)


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T StartNowHow – Looking for Help


BIC ANGEL INVESTMENTS Dr. Joachim Behrendt

Phone: +90 212 328 1939 Fax: +90 212 328 1933

www.bicangels.com http:/twitter.com/joachimbehrendt http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a

Email: [email protected]

http://twitter.com/joachimbehrendt

http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a



Business

Market and Competitor Research