Exam 2 Flashcards

Question

What lesson did we learn from Palm?

Answer 1

They began their buisness with an eleborate plan to create a portable PC computer. However the technology was not there to create this appliance it would be too costly and no one would buy. instead they focused on creating a digital agenda tooal. The case of Palm is a good example of not trying to do too much. Instead it often pays off to keep things simple, offer a product or service that fills a specific need, and focus on developing processes that ensure quality.

Answer 2

Micro-market: Target segment benefits and attractiveness. If your opportunity does not provide a differentiated solution to a customer’s pain – better, faster, or cheaper – forget it and move on to something else. b) Team domain: Ability to execute on CSFs. The ability of you and your team to execute on critical success factors. If you cannot deliver results here, then this opportunity is not for you.

Answer 3

Large markets that are growing fast are likely to attract lots of other competitors, often large companies with lots of resources. Further, such markets often have low barriers to entry, making it difficult to compete. It may instead be better to pursue a large part of a smaller market than to go after a small part of a large market.

Answer 4

the better mouse trap is when you are providing an advanced solution for a problem that people are not willing to pay for. this happened with the tech company. even though their product was faster and more advanced (better) ppl didnt buy it. Especially in technologically driven industries, entrepreneurs often try to capitalize on technology for its own sake. Doing so rather than asking what the technology can do that benefits some target segment of customers is a trap. Better technology – a better mousetrap – does not necessarily equal a better solution for the customer.

Answer 5

Viatra's ATM was the better mouse trap. they used a lot of their capital to invest in the atm and it was an extremely advanced and fast product. despite this the customers were not willing to buy it over their ethernet. if they would not have switched directiosn then they would have failed as a company. `` this shows that the better product does not always sell.

Answer 6

when there is a fast growing- large market entrepeneaurs tend to think they will not have competition. but no matter how large a market there is always competition thus differenciating your target market segment to find a niche market is crucial. you should find an industry where you cna fly below the radar and serve a smaller market. The combination of high threat of entry (macro-level industry factor) and lack of sustainable advantage for new entrants (a micro-level industry factor) can cause a large number of competitors to pursue the same opportunity. Thus, the combination of low barriers to entry and lack of sustainable competitive advantage should be a red flag.

Answer 7

This relates to the overconfidence of entrepreneurs who have experienced past success. For example, what Louis Borders learned through his success creating Borders Books did not translate to his starting Webvan (the online grocery delivery service). In fact, his past experience actually may have gotten in the way—by trying to apply principles from one industry toward another industry, which did not operate by the same set of rules.

Answer 8

Knowledge gained from experience and success in one industry can sometimes blind entrepreneurs to important differences within other industries. For example, the experience of Louis Borders in the book retail industry led him to believe that firms who build the largest and most sophisticated physical infrastructure will develop a competitive advantage within the dot.com or e-commerce marketplace. Instead, eBay demonstrated that those who could develop viable businesses with minimal physical infrastructure and maintain high gross margins would be the most successful.

Answer 9

“s we have seen, DEC failed to adapt to trend after trend in the computing industry: 16-bit computing, the rise of PCs and UNIX. The problem for DEC was not that they had no connections or that no one in DEC saw these things happening” By collecting information about trends from sources external to your firm, you will be able to better evaluate whether making large scale changes related to your products/services is appropriate. However, this doesn’t mean simply collecting the information and then ignoring it as in the example of Digital Equipment Corporation. You must fully integrate the information as being important and useful. “ DEC’s blind faith in its own products and solutions – arrogantly and naïvely, some would say – rather than on the basis of the marketplace evidence that was there to be seen and understood.”

Answer 10

alue chain to SUPPLIERS who deal with the leaders in your industry and with firms in other industries that might offer products/services that are substitutes for the offerings that you provide.

Answer 11

“Cotton and Cooper, however, were of the mind that Ethernet was going to win the battles and the war for networks, and that ATM – Virata’s better mousetrap – would lose. Licensing looked to them like the better bet: ‘We were straddling a chasm that was starting to widen. Sooner or later we had to jump to one side, otherwise we risked falling into the chasm never to recover.’7 His first move was to dismiss Virata’s entire networking product sales staff. **The house would be bet on DSL**.” ““the value chain to POTENTIAL CUSTOMERS – including distributors, consumers, and users – in target markets that you might serve one day in addition to the markets you plan to target at the outset.”

Answer 12

your industry with COMPETITORS – and with firms from other industries that offer substitutes – so that you can gain some perspective to gauge accurately changes in market conditions. When your sales increase, it’s good to know whether they are doing so because you are gaining market share or whether you are simply benefiting from a rising tide that floats all boats. The same is true when your sales are soft.”

Answer 13

When your sales increase, it’s good to know if they are doing so because you are gaining market share or if you are simply benefiting from a tide that floats all boats. The same is true when sales are soft. Having good contacts across your industry can help you to evaluate the nature of your current sales position. | this is why it is important to have connections in the industry

Answer 14

to help you recognize trends or changes in the amrketplace that your company can take advantage of.

Answer 15

They switched directions from the ATM to lisencing and were able to get out of the better mouse trap (ATM). Mainly that connections matter. Tom coopers and the board's connections up, down and accross the value chain allowed them to take a risky bet with confidence. they said that the thing that made them most sucessful was their teams connections and the quality of the team.

Answer 16

a) Come up with an idea that you think might fly, one that solves genuine customer problems or needs. b) Assess and shape your idea using the seven domains framework. c) Write a customer-driven feasibility study – a memo to yourself – that lays out the conclusions you’ve reached from your data and analysis.

Answer 17

a) Opportunities created by macro-trends (e.g., Whole Foods Market). b) Opportunities found by living and experiencing the customer’s problems (e.g., Nike). c) Opportunities created through scientific research (e.g., SmithKline Beecham’s Zantac). d) Opportunities proven elsewhere that you can transform and adapt for the local context of where you hope to do business (e.g., Starbucks).

Exam 2 Flashcards

(41 cards)