Question 2
What knowledge do you possess that can contribute to serving
a market need within your industry of interest?
The knowledge that I possess to contribute to serving a
market needs are to explore ideas that align with my educational and/or work
experiences. To seek ideas that
intersects my know-how, my interests, and my social capital. By considering new
venture ideas that build on my existing knowledge, I can create favorable
knowledge conditions for myself. I need to seek opportunities to build my knowledge
of industries, markets, technologies etc. By partnering with co-founder/team
members will bring complimentary knowledge and adds social capital for the venture.
Question 3
What are the demand conditions in the market need discussed
in prior question?
Three aspects of customer demand conditions need to be
examined. They are magnitude of customer demand, rate of growth of that demand,
and heterogeneity of that demand across customer segments
Question 4
What is the lifecycle stage of industry and market that you
are interested in entering?
Industry lifecycle examines the stages of development of an industry.
They are young and emerging stage of industry, middle-aged, level, and
predictable stage of industry, or old and declining stage of industry.
Question 5
What complimentary assets are most critical in the above
industry and market of interest?
Complimentary assets involve tangible and intangible
resources. Tangible assets include
money, equipment, real estate, etc. Intangible
assets include knowledge, relationships, etc. Patents or brands may sit between the tangible
and intangible categories.
Question 7
Discuss the five competitive forces that determine industry
profitability.
There are five competitive forces that determine industry
profitability. They are rivalry determinants, determinants of buyer power, determinants
of supplier power, entry barriers, and determinants of substitution threat.
Rivalry determinants include industry growth, fixed costs, products differences,
brand identity, switching costs, concentration and balance, diversity of competitors,
and exit barriers. Determinants of buyer power in bargaining leverage aspect includes
buyer concentration, buyer volume, buyer switching costs relative to firm
switching costs, buyer information, ability to backward integrate, and substitute
products. Determinants of buyer power in price sensitivity aspect include price/total
purchases, product differences, brand identity, impact on quality and performance,
buyer profits and decision makers’ incentives. Determinants of supplier power
includes differentiation of inputs, switching costs of suppliers and firms in
the industry, presence of substitute inputs, supplier concentration, importance
of volume to supplier, cost relative to total purchases in the industry and impact
of inputs on cost or differentiation. Entry barriers include economies of scale,
proprietary product differences, brand identity, switching costs, capital
requirements, access to distribution, absolute cost advantages, learning curve,
and access to necessary inputs, proprietary processes, government policies, and
expected retaliation. Determinants of substitution threat include relative
price performance of substitutes, switching costs, and buyer propensity to
substitute.
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