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Product / Service Checklist
3. Determine a fair price
Cover your costs
Spring 2004
Gillette
iPod
What are your prof margins?
PM = Operating Profit I Sales
v\ hAt a customers willing to pay?
Starbucks
What are your competitors charging?
What are your competitor's margins?
- Avoid signs of desperation
GEB 4994 - Week 3 23
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Product / Service Checklist
4. Product Attributes
Competitive advantages?
Proprietary advantages?
5. Production / Logistics
Can yOU deliver?
A product that meets customer expectations
In a timely fashion
And get it to where the customer needs it
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6. Warranties / Repairs
. -
- Who provides ongoing services?
Will you be aro d in th 10 g term?
Spring 2004 GEB 4994 - Week 3 25
Supplier Bargaining Power
How stable are the size and composition of
our supplier group?
Are there any suppliers likely to attempt
forward integration into the industry?
How dependent will our suppliers be in the
future?
Are substitute suppliers likely to become
available?
Could we become our own supplier?
Spring 2004 GEB 4994 - Week 4 47
Occasions
Benefits
User status
Usage rate
Loyalty status
Buyer-
readiness stage
Attitude toward
roduct
Spring 2004
Consumer Markets:
Behavioral Variables
Regular occasion, special occasion
Quality, service, economy, speed
Nonuser, ex-user, potential, first-time, regular
Light user, medium user, heavy user
None, medium, strong, absolute
Unaware, aware, informed, interested,
intends to buy
Enthusiastic, positive, indifferent, negative,
hostile
GEB 4994 - Week 4 31
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What you should KNOW ...
entrepreneur p
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Strengths
Weaknesses
Understand where and how you make
money
Cash-Value Chain
Distribution Chain
Spring 2004 GEB 4994 - Week 4 39
Substitute Products/Services
Are new substitutes likely?
Will they be price competitive?
Could we fight off substitutes by price
competition or by advertising to sharpen
product differentiation?
What actions could we take to reduce the
potential for having alternative products
seen as legitimate substitutes?
Spring 2004 GEB 4994 - Week 4 48
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Competition Checklist
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1. List direct competition by product and
geographic market.
- Who is directly seeking the same money you
are?
- Specialty retail stores compete with
specialty stores, not department stores
2. List the indirect competitors by product
and geographic market.
- Movie theaters are indirect competitors of
video stores
Spring 2004 GEB 4994 - Week 4 53
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Competition Checklist
3. List emerging competitors entering the
industry or market.
- Video rental stores, supermarkets entering
video business.
4. Describe the competitors' strengths and
weaknesses by product and market
segment
- List in chart form, tie these back to your
strengths and weaknesses.
Spring 2004 GEB 4994 - Week 4 54
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Competition Checklist
5. Describe the competitors' share of the
market by prod uct.
- List by percentages or in unit or dollar
volume
6. Discuss relevant background information
concerning major competitors
- Include profiles of their management team,
company history, financials
- Show where they are strong or weak
Spring 2004 GEB 4994 - Week 4 55
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Competition Checklist
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7. On what basis will the product / service
compete with them?
- Product superiority, price, advertising, etc.
8. How is this venture superior to that of the
competition?
- Operations, management, product / service,
price, service, delivery, etc.
Spring 2004 GEB 4994 - Week 4 56
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Competition Checklist
9. How does this product / service compare
with the competition in the eyes of
customers?
- Include some customer reactions from a
small sample you have taken
1 O. Does this venture threaten the major
strategic objectives or self-image of the
competition?
- Will they attempt to destroy the venture at
any cost?
Spring 2004 GEB 4994 - Week 4 57
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Business
model
Revenue
model
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Value
roposition
Spring 2004
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Key Business Concepts
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What is the basic principle behind
the business?
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How do you plan to make money?
What are your sources of income?
How do . you plan create value?
What is the commercial proposition?
What is the customer going to pay for?
GEB 4994 - Week 3 5
Competitive
Position
(Weak)
Spring 2004
SWOT Analysis
Opportunities
Threats
GEB 4994 - Week 4
Competitive
Position
(Strong)
40
Business Concept Checklist
1. Define the important and distinct functions of the product I
service.
/ 2. What are the unique or proprietary aspects of the product I
service?
Describe any innovative technology involved with the product I
service.
/
;4. Describe the position the concept plays in the industry.
5. Who is the intended customer or customer group?
/ Who pays? Who uses?
GEB-4994-Wolson 1 Business Concept Checklist
/ What benefits will be delivered to the customer?
Y" How will the product / service be sold to the customer?
ho will make the product or design the service?
ow will the customer know you exist?
GEB-4994-Wolson 2
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Business Concept Checklist U