Case 1: The Taste of WineMathias Kaas-Olsen

2015-10-21

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Assumptions Key Problem Causal Analysis Solutions Robustness

Assumptions

● The convergence of sensing markets is real.

● Milkfos' strategy is to stay in the dairy market.

● The production of Milkfos' sensors is efficient.

● Production of broad-range sensors is cheaper than specialized sensors.

● Sensor precision has a limit after which more precision is no longer significant to the industry.

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Assumptions Key Problem Causal Analysis Solutions Robustness

Key Problem & Problem Owner

Key Problem:Milkfos' strategy risks losing their competitive advantages in the future.

Problem Owner:CEO of Milkfos.

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Assumptions Key Problem Causal Analysis Solutions Robustness

Effectiveness/Efficiency

Milkfos:Quality products for the dairy industry.

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Assumptions Key Problem Causal Analysis Solutions Robustness

Business Model Canvas

Danish dairyindustry (niche).

High-precisionmeasuring equip-ment for dairyproducts.

Cost- or value-driven.

Direct contactto companies.

Asset sales.

Experiencedengineers.Manufacturingand developmentfacilities.

Development andproduction ofdairy sensors.

Personalassistance.

Danish dairyindustry.

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Assumptions Key Problem Causal Analysis Solutions Robustness

Value Proposition Canvas

Customer job:1. Measure quality of dairy precisely.

Pains:Price

Gains:Precise measurements of dairy products.Product:

High-precisionmeasuring equipment for dairy products.

Pain relievers:

Gain creators:High-precision measurements of dairy products.

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Assumptions Key Problem Causal Analysis Solutions Robustness

Differentiation/Cost

Milkfos sensors

Broad-range sensors

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Assumptions Key Problem Causal Analysis Solutions Robustness

External Forces

Technological trend towards precision broad-range sensors.

Lower entry barrier into dairy market.Substitute products for specialised sensors.

Sensor markets converge.

Switching costs: Loyal customers, established reputation, good contact.

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Assumptions Key Problem Causal Analysis Solutions Robustness

VRISA Analysis of Solutions

Value Rareness Imitability Substitutability Appropriability

Present + + + + +

Future + - +/- - -

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Assumptions Key Problem Causal Analysis Solutions Robustness

Competitive Advantages

High-Quality sensors. Responsive to the

dairy industry.Ignores other industries.

Broad-range sensors will become more efficient.

Innovative in dairy market.Indifferent to other markets.

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Assumptions Key Problem Causal Analysis Solutions Robustness

Solutions

1) Explore new markets:

a) Go international in dairy, expand to nearby countries.

b) Explore different markets than dairy (first mover?):

i. Wine

ii. Breweries (beer, soda, cider, etc.)

iii. Other liquids?

2) Fortify in current market, become indispensible:

a) Change strategy/business model to incur higher switching costs.

b) Rely on customers loyalty and offer the best service, value-driven business model. Make the increased cost worth it.

c) Reduce production cost to compete with broad-range production?

3) Invest in broad-range sensors and be first mover for market convergence.

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Assumptions Key Problem Causal Analysis Solutions Robustness

Familiarity Matrix

For the wine market, Milkfos is unfamiliar with the market, but might be somewhat familiar with the technology.

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Assumptions Key Problem Causal Analysis Solutions Robustness

Robustness

● The convergence of sensing markets is real.● No threat of competitors entering market

● Milkfos' strategy is to stay in the dairy market.● Expand to new markets.

● The production of Milkfos' sensors is efficient.● Solve efficiency problem in organisation before venturing into new

markets.● Production of broad-range sensors is cheaper than specialized sensors.

● There's no threat of losing competetive advantage.● Sensor precision has a limit after which more precision is no longer

significant to the industry.● Stay in dairy market, and keep competetive advantage by advancing

technology.