Chapter 2

Opportunity

Opportunities

New Product or Services New Value

Modify a product/service

Combine two or more product/service

Add to the product/service

Trapped value

New to the world

Hybrid

Market Opportunity Analysis

• Investigate opportunity in an existing or new value system

• Identify unmet or underserved needs• Determine target customer segments• Assess resource requirements to deliver the offering• Assess competitive, technological and financial

attractiveness of opportunity• Conduct go/no go assessment

Investigate opportunity in an existing or new value system

• Value is your profit, convert value to business opportunities

• Three basic value types1. Trapped value (unlock trapped value)

a. Create more efficient markets B2C1) Amazon. COM

– Create more efficient value system B2B1) Intranet

2. New to the world valuea. Customize offerings

1) Mass customization

b. Build community1) Chat room, customer bulletin board

c. Introduce new function or customer experience1) Online shopping, 3D tour.

3. Hybrid value

Identify Unmet or Underserved Needs

• Ask your self. Are the added value being satisfied• Study the customer decision-making process to find

out unmet needs Customer decision process

1. Origination

2. Information gatheringa. What is current problem (can not get correct information, information

is not current)

b. Anything I can do to help (web sites to compare prices, select the best store)

3. Evaluationa. Which vendor has the best reputation, which book has good review

4. Purchase decisiona. Online, coupons, promotion

5. Post purchase evaluation and behaviora. Online menu, instruction, registration, product updates

Determine Target Customer Segments

• You can not serve everyone, focus on the group that you have niche with.

• Segmentation: a process of grouping customers based on their similarities

• Approaches to market segmentation– Demographic (age, gender)– Geographic (country, city)– Behavioral (like online shopping)– Occasion (birthday cake, mother’s day, Halloween costume store)– Psychographic (lifestyle, personality, DINK)– Benefits: convenience (people tend to buy milk in 7-11 for

economy

looking for people with a purpose

• Segmentation must be – Actionable

• Can be identified

• Readily reached

• Be described in terms of growth, size, profile and attractiveness

– Meaningful• Behave similarly

• Provide insight of customers’ motivation

• Correspond to the set of barriers that customers face when they buy or use a product or services

• How customers buy or use the product or service

• The segments are large enough to warrant a different set of action

Assess Resource Requirements to Deliver

the Offering • A good resource system to facilitate your offerings to

your customers– Physical — virtual/physical world– Activities — capabilities– Supply — demand – Single — multiple

Assess competitive, technological and financial attractiveness of opportunity

• Competitive intensity• Customer dynamics• Technology vulnerability• Microeconomics

– Size, volume, level of profitability

Conduct go/no-go assessment