Supportive Notes (for the show notes - click the rutter)
Photo 1: Competitive Advantage of Market Dominators
- Creation of New Markets - 57% of the fast growth companies made this choice. Examples - eBay, Google, Amgen, Cisco
- Redefine Existing Markets - 33% of fast growth companies made this choice. Examples - Starbucks, Siebel Systems
- Optimize the Existing Markets - 10% of fast growth companies made this choice. Examples - Clear Channel Communications, Office Depot, Best Buy
- Substitution - none of the fast growth companies made this choice. Critical Issue - most startups are under capitalized which makes the other three choices difficult. Most startups begin with substitution - taking business away from existing competitors by taking advantage of being small; easier to do business with, quicker, and at a lower price. The issue is if you start here, what is your next act? If you intend to grow the business beyond just creating a job for yourself and a few employees for support, which of three will be your path to big?
Photo 2: Trends Impacting Customers
- Mega Trends - what is happening in the economy, with regulations, and technology that will have an impact on your customers?
- Customer Trends - what is happening that will affect their buying decisions; fewer are profitable?, more diverse needs - fewer with the same need?, customers becoming more powerful and dictatorial of what they buy at what price? old customers leaving - new customers arriving?
- Distribution Trends - more choices, fewer choices, total collapse - selling direct to end users, expansion of the distribution chain - more steps?
- Business Trends - greater employee skills, flattening the hierarchy and moving to a network model, moving to digital platforms and away from face to face?
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