Understanding Market Opportunities

1. Understanding Market Opportunities 4

2. Cell Phones • 2005 2 billion users • Third generation phones very popular 30% in Japan and 93% in Korea • Developing markets • Manufacturer Market driven by phones with new features, very volatile • Some consolidation among providers • Difficult to get licenses

3. 4Cs • Company • Context • Competition • Customer • How attractive is the market we serve or propose to serve? • How attractive is the industry in which we would compete? • Are the right resources in places to effectively pursue the opportunity at hand?

4. The Seven Domains of Attractive Opportunities(Exhibit: 4.1.) Industry Domains Market Domains Macro Level MarketAttractiveness IndustryAttractiveness Mission, Ability to Aspirations, Execute Propensity on CSFs for Risk Connectedness up and down Value Chain Team Domains Micro Level SustainableAdvantage Target Segment Benefits and Attractiveness

5. The Seven Domains of Attractive Opportunities Market Domains Industry Domains IndustryAttractiveness Market Attractiveness

6. Discussion Question • What’s a market?

7. Discussion Question 2. What’s an industry?

8. Discussion Questions 3. Is the market vs. industry distinction important? Why or why not?

9. Discussion Questions 4. Do macroenvironmental trends matter? What are their implications?

10. Macro Trend Analysis: Demographic environment Sociocultural environment Economicenvironment Regulatory environment Technological environment Natural environment

15. Discussion Question • Let’s identify a trend or two of each type and consider what businesses might be affected.

16. Discussion Question 5.What are the key questions a macro trends analysis should answer?

17. Discussion Questions 6. Does industry attractiveness matter? Why or why not?

18. A Tool for Assessing Industry Attractiveness: Porter’s Five Forces Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Rivalry among existing industry firms Threat of substitute products Source: Adapted from Michael E. Porter, “Industry Structure and Competitive Strategy: Keys to Profitability,” Financial Analysts Journal, July-August 1980, p. 33.

20. Discussion Question 7. If you are preparing a marketing plan, where’s the best place to look for information about macro trends?

21. Discussion Question 8. What’s the difference between the macro and the micro level of analysis?

22. The Seven Domains of Attractive Opportunities Market Domains Industry Domains Macro Level MarketAttractiveness IndustryAttractiveness Mission, Ability to Aspirations, Execute Propensity on CSFs for Risk Connectedness up and down Value Chain Team Domains Micro Level SustainableAdvantage Target Segment Benefits and Attractiveness

23. Understanding Markets at the Micro Level • Involves looking individually at customers to understand the attractiveness of the target segment

24. Understanding Industries at the Micro Level • Involves looking at the company and whether it has a sustainable competitive advantage

27. The Seven Domains of Attractive Opportunities Market Domains Industry Domains Macro Level MarketAttractiveness IndustryAttractiveness Mission, Ability to Aspirations, Execute Propensity on CSFs for Risk Connectedness up and down Value Chain Team Domains Micro Level SustainableAdvantage Target Segment Benefits and Attractiveness

28. The Team Domains • Opportunities are only as good as the people who will pursue them