norwegian school of entrepreneurship master of science program in innovation and entrepreneurship...
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Norwegian School of Entrepreneurship
Master of Science Program in Innovation and Entrepreneurship
ENT 4000
Group work session 3 – 09/09-08
ENT 4000 - Group Work Session 3
Homework
Business Idea and Marketing Plan
Presentation 23.09.08
ENT 4000 - Group Work Session 3
The Business Plan
– Executive summary– Business idea– Management team– Marketing plan– Businessmodel og organization– Operational plan– Financial plan– Risk analysis
ENT 4000 - Group Work Session 3
Business idea
The business idea should answer the following:• Who is the customer/ What is the market?
– In example, is it companies/what kind of companies (size, industry etc.)? – Or is it a person/what kind of person (i.e. age 30-55, single, affluent)?– Remember that your customer is not necessarily the same as the end-user!
• What is the customer’s benefit / what kind of problem do you solve / what are the unique advantages?
• Why should the customer pay for your product or service?• Are you offering a product, a service or both?
ENT 4000 - Group Work Session 3
Value proposition
• A short summary of these questions is called a companies ”value proposition”
– Product– Price– Availability– Service– Experience
• An example: The value proposition for Amazon.com could be described as: An easily accessible Internet site that is convenient all of the
time to provide a wide selection of books, CDs, and videos at a fair price to the busy, computer-literate customer
ENT 4000 - Group Work Session 3
Marketing research
Marketing research:• Systematic and objective identification, collection,
analysis, and dissemination of information
Purpose:• assisting management in decision making related to
the identification and solution of problems and opportunities in marketing.
ENT 4000 - Group Work Session 3
Marketing plan
• Market, competition, and context• Choice of target market
– Market segmentation
• Market strategy– Product
– Price
– Place
– Promotion
ENT 4000 - Group Work Session 3
Marketing plan
• Market, competition and context
– Market size• I.e. number of customers, produced units and total turnover.
– Market growth (next 5 years) • Real numbers, trends
– Competitive situation• Industry• What kind of companies offers the same product/service or
similar• How many competitors are there, what are their size , market
share, strategies etc.– Context (i.e. government regulations)
ENT 4000 - Group Work Session 3
Competitive situation in the marketplace
Porters 5 force-model
ENT 4000 - Group Work Session 3
The competitive situationPorters 5 force-model looks at how profitable an industry is → depends on the 5 forces.
• Bargaining power of customers – i.e. buyer concentration to firm concentration ratio; buyer volume; buyer switching costs
• Bargaining power of suppliers – i.e. supplier switching costs; presence of substitute inputs; threat of forward integration by suppliers relative to the threat of backward integration by firms;
• Threat of new entrants – i.e. the existence of barriers to entry; capital requirements; access to distribution; absolute cost advantages; learning curve advantages; expected retaliation
• Threat of substitute products – i.e. relative price performance of substitutes; perceived level of product differentiation
• Intensity of competitive rivalry – i.e. number of competitors; rate of industry growth; exit barriers; brand equity
ENT 4000 - Group Work Session 3
Business idea and marketing plan
• For next gathering prepare a PPT presentation of the business idea and marketing plan.
- Send the presentation to:
- Before 23/09-08 (Monday before midnight)
- Presentation should be maximum 7-10 minutes