How does one identify entrepreneurial
opportunity?
Customer Dissatisfaction
Criticality-Discontentment Matrix•Most attractive market opportunity
•Natural pull
•Minimum marketing efforts
Criticality-Discontentment MatrixBarbie
Shattered the cuddly bobby dolls perceptionCritical need: Adult features and existing
discontentment and also no alternatives hence diss.
Re-designed based on researchDomino’s
Critical need: Pizzas-high quality, delicious taste and low price combination
Discontentment: Process involved in their purchaseMarkets can be divided based on levels of criticality
& dissatisfaction Two options to grow:
Focus on less dissatisfied and less critical market segments
Target same segment elsewhere
Criticality-Discontentment MatrixDell
Critical need: Customized configurationDiscontentment: Price and delivery
Harry Porter series: Highly critical need need of the children to
fantasise with excitement in a world full of magic, with a lot of positive suspense built in
Criticality-Discontentment MatrixQuadrant 2: •Eg: Poor public transport•Poor quality of peripheral features•Important to identify niches•Substantial marketing efforts
Quadrant 3: •Least attractive •Considerable marketing efforts
Few more examples• Disney
• Visa/Master Cards
• Gilbert Toys
• Electric cycle
• Ford Edsel
Structure of needs and dissatisfaction Dynamism in needs A function of number of variables like
income habits trends in the society personal likes and dislikes. Elements of discontentment
Key sources of discontentment are
Product features Processes involved in buying and
consumption Intangible external variables
Discontentment - Criticality Tunnel
Dynamic external & internal environmentImpact on customer needs, level of criticality,
maturing of latent needsInnovative products and their relationship
with growing criticality and discontentment with existing products
Travelling through the D-C Tunnel
D-C Tunnel Example
Strategy of deep investment & long wait
• 25 yrs to break even in Mexico & Japan•Product moved through the D-C tunnel•Changing the level of criticality•Higher level of efforts to move from quadrant 3 to 1•Proactively worked•Deep investment and long wait for customer needs to change.•Entre who enter at lower point in quad 3 – high level of efforts
D-C Tunnel Example: Jakks PacificStrategy : grow
through new product introduction in tune with dynamism & criticality
WWF toys Maturing with
changing socio-cultural profile
Online stores
D-C Tunnel continued….Adapting to changing needs, introducing
Harry Potter characters, line of girls fashion accessories based on American Idol
Customers tolerate variation in performanceCustomer perceived risk due to switching brands
Strategic Implications to firmsConstantly identify changes in needs and
modify featuresCreate new needs by terminating existing
product before it completes its PLC Examples of Colour TV, Email
Challenge is to create discontent with existing products with the new product: identify needs
Where to EnterPeak of criticality level and extent of
discontentment
Customer Dissatisfaction Elimination (CDE) chainValue Chain: Series of activities that create
Value in a product
Product Features
Info Collectio
n process
Buying Process
PaymentProcess
Delivery Process
Customer
AmazonBoo.com
Master Card
DHL, FedEx
CDE CHAIN & BUSINESS STRATEGYDOMINO’sEach link formed a source of dissatisfaction,
reflecting the different processes that a customer is involved in the purchase and consumption stages.
Perfected and strengthened all links in the CDE chain.
Built competitive advantage.
IMPORTANT LINKS1. ORDERING PROCESS2. DELIVERY PROCESS3. COST & PRODUCT FEATURES ( quality ,
taste)
CONCLUSIONCustomer dissatisfaction is a source of
opportunity. Customer’s level of criticality and extent of
prevailing / emerging discontentment -useful way to identify entrepreneurial opportunities.
Exploitation of opportunities and elimination of dissatisfaction on every link of the CDE Chain will enable organizations to be entrepreneurial.
Thus will achieve Zero Customer Dissatisfaction.
Thank You