What is YOUR

venture identity?

3-2

Feasibility & Desirability

• It is one of the CH1 concepts• It is the foundation of your assignment #2• It is this week’s key topic & reading

• Business model• 7 components in the book chapters?• 5 components in your take-home?

• Feasibility analysis• 3 interrelated components?

1 2

3

4

5

a.k.a. core competency

What’s your VRIN? What problem will you solve?

Broad- or narrow-scope?

Business Model (Take-Home Assignment)

Provide details of these 5 elements for your [named product/service]

3-4

Feasibility Analysis

Industry & Market

Product or

ServiceFinancial

RECAP OF LAST CLASS

3-6

Feasibility Analysis

Industry & Market

Product or

ServiceFinancial

Industry & Market Feasibility

3-8

In-Class Exercise

Details (who, what, how, etc.) High/Moderate/Low

Rivalry among existing CompetitorsThreat of new entrants

Threat of substitutes

Bargaining power of customersBargaining power of suppliers

Name Porter’s 5 forces for your [named product/service]

AGENDA FOR TODAY

3-10

Feasibility Analysis

Industry & Market

Product or

ServiceFinancial

3-11

What went wrong with Segway?

• Projected sales: 10,000 ~ 50,000 units in 12 months

• Actual sales:6,000 units in 21 months

3-12

Product or Service Desirability

• Secondary research• White papers, internet, demographic/census data,

directory/listing• Simplified customer survey

• $20 Starbucks test on random people• Focus Group

• Concept test on “potential customers”• Buyer Intent • Prototypes

3-13

Focus Group Concept Test

• Ask 8~12 “potential customers” to provide you in-depth feedback• List 3 things you like about the product or service

idea described• Provide 3 suggestions for making the idea better• Do you think the idea is feasible (i.e., is a realistic

or viable business idea)?• Provide any additional comments or suggestions

you think might be helpful (including red flags)

3-14

Buyer Intent Survey

• Ask 50 “potential customers”• How likely would you be to buy the product or

service described?• Definitely, probably, might or might not, definitely not

• How much would you be willing to pay for the product or service?

• Where would you expect to find this product or service for sale?

Business Model (Take-Home Assignment)

Provide details of these 5 elements for your [named product/service]

6

78

9

WHAT COMES NEXT?

3-17

Feasibility Analysis

Industry & Market

Product or

ServiceFinancial