Answering Questions and Data Collection – Feasibility/Product Opportunity Evaluation
Part 1 – Answering Questions and Data Collection – Feasibility/Product Opportunity Evaluation
You have your choice of three sets of probing questions to answer in analyzing your product or service offering:
A. Product Opportunity Assessment:
1. Exactly what problem will this solve? (value proposition)
2. For whom do we solve that problem? (target market)
3. How big is the opportunity? (market size)
4. What alternatives are out there? (competitive landscape)
5. Why are we best suited to pursue this? (our differentiator)
6. Why now? (market window)
7. How will we get this product to market? (go-to-market strategy)
8. How will we measure success/make money from this product? (metrics/revenue strategy)
9. What factors are critical to success? (solution requirements)
10. Given the above, what’s the recommendation? (go or no-go)
B. Brief Summary of POEM Framework
Is there a meaningful problem to solve? Is there a clearly identifiable customer and target market? Can you segment this market? Will you be able to get repeat sales? Will you continue to build and adapt the product or service to the customer? What will be the minimum viable product (MVP) that will get you started with sales for this product or service? Will there be healthy margins? What limitations from supply will make it difficult to reach potential market? How much capital is required up front for research and development before you can get some revenue flowing? What will be the burn rate before you break even? What are other competitors doing to address this need? Is this the right time to enter the market? How strong is your team to support your objectives? How competent are your competitors? What barriers to entry do you see to defend your position?
C. Opportunity Analysis Questions – see text pages 512-513
4.0 Opportunity Analysis
A. Describe your Target customer along as many dimensions as you can to find (demographic, geographic, needs, trends, etc.).
B. Describe the research method you used to develop this section.
4.1. Industry analysis.
A. What is the industry or set of industries in which your organization will operate? B. How large is your industry projected size? C. What are the current and anticipated characteristics and trends in the industry? D. What are the major customer groups in the industry? E. How large is your target market (number of customers, size of purchases)? Quantify it. F. What factors influence the demand for your product or service? G. What factors influence the supply your product or service?
4.2. Environmental Analysis. A. Performance SWOT analysis of your organization. Remember that strengths and weaknesses are internal to your organization; while opportunity and threats are external. B. What environmental factors are likely to impact your business? How likely? C. Are there customers for your business in other countries?
4.3. Competitive analysis. A. Define and describe your competition – direct and indirect. B. Describe your competitive advantage along the dimensions of quality, price, location. What attributes will cause you to differ from your competitors? C. Find three competitors and describe them. Use the comparative analysis in chapter 3. D. Describe international competitors who may be able to access your customers. E. Describe your strategy for out-performing your competition. F. What tactics will you use to carry out the strategy? G. What barriers to entry can you create block out competitors? How will you do so?
This information will be backfilled into your Business Plan – sections 4
Part 2 – Charting Feasibility/Opportunity Analysis
Then all of the Opportunity or Feasibility Analyses should have some kind of objective data support – visuals:
Competitive Analysis – text pages 116. Use objective numeric weights or objective descriptions
A.Business Model Canvas – briefly describe how your business model will provide value for customers
Who are our Key Partners?
Who are our Key Suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What type of relationship does each of our Customer Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
For whom are we creating value?
Who are our most important customers?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
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