Master of Science Program in Innovation and Entrepreneurship

1
Master of Science Program in Innovation and
Entrepreneurship

• ENT 4000
• Group work session 3 09/09-08

2
Homework

• Business Idea and Marketing Plan
• Presentation 23.09.08

3
The Business Plan

• Executive summary
• Business idea
• Management team
• Marketing plan
• Businessmodel og organization
• Operational plan
• Financial plan
• Risk analysis

4
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 customers 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?

5
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

6
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.

7
Marketing plan

• Market, competition, and context
• Choice of target market
• Market segmentation
• Market strategy
• Product
• Price
• Place
• Promotion

8
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)

9
Competitive situation in the marketplace
Porters 5 force-model
10
The competitive situation

• Porters 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

11
Business idea and marketing plan

• For next gathering prepare a PPT presentation of
  the business idea and marketing plan.
• - Send the presentation to
• l.m.nass_at_sfe.uio.no
• - Before 23/09-08 (Monday before midnight)
• - Presentation should be maximum 7-10 minutes