Startnowhow 9.2.17 Market and Competitor Research

MARKET AND COMPETITOR RESEARCH Dr. Joachim Behrendt

INTR

OD

UC

TION

StartNowHow

• Open seminar series for active and prospective entrepreneurs

• 10 sessions on monthly basis until summer 2017

• Covers relevant theoretical and practical aspects of entrepreneurship

• Based on lecture „Entrepreneurship“ @Bogazici University

• Based on experiences of entrepreneurs, investors, mentors and consultants

• Each session with guest speaker (entrepreneurs, investors, mentors, etc.)

• Certificate provided for participants (from BIC Angels / Bogazici University Entrepreneurship Center) joining at least 70% of the sessions

• Language: English / Turkish

• Thursdays 17.15h – 19.30h

• Next session: Thu 9. March 2017

• Topic: Funding for Startups – Stage Financing for Ventures

• Guest Speaker: Ali Karabey, 212ltd

• Early registration for each session required (eventbrite), limited capacity!

• Priority for regular participants

Startnowhow 09.02.2017 2

INTR

OD

UC

TION

StartNowHow - Seminar Topics (preliminary)

1. Thu 22.09.16: The entrepreneurial ecosystem in Turkey

2. Thu 20.10.16: Entrepreneurship as a profession

3. Thu 17.11.16: Financial planning for startups

4. Thu 15.12.16: Planning, developing and testing a business model

5. Thu 12.01.17: Opportunity recognition and evaluation

6. Thu 09.02.17: Market and competitor research

7. Thu 09.03.17: Funding the startup – stage financing for ventures

8. Thu 06.04.17: Startup valuation

9. Thu 04.05.17: The investment process – pitching, negotiations and termsheet

10. Thu 01.06.17: Success and failure as an entrepreneur


INTR

OD

UC

TION

StartNowHow - Literature

• Bowers, Brent, 8 Patterns of Highly Effective Entrepreneurs, Doubleday, New York, NY 2008

• Bygrave, William D. / Zacharaiks, Andrew, The Portable MBA in Entrepreneurship, 4th ed., Wiley, Hoboken, NJ 2010

• Drucker, Peter F., Innovation and Entrepreneurship, 1st ed. 1985, reprinted 2010, Elsevier, Kiddlington, 2010

• Harper, Stephen C., Extraordinary Entrepreneurship: The Professional’s Guide to Starting an Exceptional Enterprise, Wiley, Hoboken, NJ 2005

• Hirshberg, Meg Cadoux, For Better or for Work, All Inc., New York, NY 2012

• Hisrich, Robert D. / Peters, Michael P. / Shepherd, Dean A., Entrepreneurship, 9th ed., McGraw-Hill, New York, NY 2012

• Kuratko, Donald F., Entrepreneurship: Theory, Process, Practice, 8th ed., South-Western, Mason, OH 2009

• Leach, J. Chris / Melicher, Ronald W., Entrepreneurial Finance, International Edition, 4th ed., South-Western, Hampshire 2012

• Osterwalder, Alexander / Pigneur, Yves, Business Model Generation, Wiley, Hoboken, NJ 2010

• Ries, Eric, The Lean Startup, Crown Business, New York, NY 2011

• Smith, Janet Kiholm / Smith, Richard L. / Bliss, Richard T., Entrepreneurial Finance – Strategy, Valuation, and Deal Structure, Standford University Press, Stanford, CA 2011

• Stokes, David / Wilson, Nick, Small Business Management and Entrepreneurship, 6th ed., South-Western, Hampshire 2010

• Taleb, Nassim Nicholas, The Black Swan – The Impact of the Highly Improbable, revised ed., Penguin, London 2010

• Timmons, Jeffry A. / Spinelli, Stephen, New Venture Creation – Entrepreneurship for the 21st Century, 9th ed., McGraw-Hill, New York, NY 2011


PR

E-IN

VES

TMEN

T: H

OW

WE

SELE

CT

BIC Angels Deal Selection: First Round / Selection Committee

09.02.2017 5 BIC Angels Investments

20 + / month

MA

RK

ET RESEA

RC

H

PR

E-IN

VES

TMEN

T: H

OW

WE

SELE

CT

BIC Angels Deal Selection: Second Round / Monthly Investor Meeting

09.02.2017 6 BIC Angels Investments

4 / month

MA

RK

ET RESEA

RC

H

MA

RK

ET RESEA

RC

H

Industry and Market Analysis

09.02.2017 7 Startnowhow

• Industry and Market Analysis

• Market growth

• Markets in infant stage with high growth means a more promising opportunity

• Market size

• Markets with high (future) size is more interesting

• Market structure

• Concentrated vs. fragmented market – fragmented market offers more opportunities for future growth and for gaining market share

• Margin analysis

• Is typical gross margin high or low – high gross margin means more exciting opportunity

• Demographic analyses may be useful

• Separation into general (national) and local / regional analysis may be useful if target market is local / regional

• Inability to define target market in established terms (e.g sector definitions according to chambers of commerce) may mean „very innovative“ (not possible to define market, or too many markets can be defined), but first impression for investors is „very risky“

• Sources of information: Public information, typically governmental statistics, statistics of chambers of commerce and industry associations

MA

RK

ET RESEA

RC

H

Classification Guidelines for the VOS Indicator


Source: Leach / Melicher, Entrepreneurial Finance, p.55

MA

RK

ET RESEA

RC

H

Market Information Needs - Example


Source: Hisrich / Peters / Shepherd, Entrepreneurship, p.196

MA

RK

ET RESEA

RC

H

Market Segmentation and Customer Analysis


• Market segmentation

• How is the industry currently segmented?

• How will the market be segmented in the future?

• Problem with developing markets: assumpitons necessary about future market segmentation (example: mobile phone market in early stage – forecast market segmentation into smartphones vs. simple mobiles possible?)

• Analysis of market entry barriers

• Target groups

• B2C markets: Consumer behavior characteristics (demographic / psychographic / geographic information) help separating target groups

• B2B markets: Knowledge of industry, size of firms, frequency of purchase, price sensitivity, organizational contact

• The more details you know about your customer, the more promising the venture

• VC: „The most impressive entrepreneur is the one who comes to my office not only knowing the customer in terms of demographics and psychographics, but can also name who that customer is by address, phone number, and e-mail address.“

• Sources of information: More difficult, sometimes own market research necessary – but avoid „paralysis by analysis“

MA

RK

ET RESEA

RC

H

Consumer Behavior and Market Segmentation


Source: Kuratko, Entrepreneurship – Theory, Process, Practice, p.296

MA

RK

ET RESEA

RC

H



Source: Kuratko, Entrepreneurship – Theory, Process, Practice, p.298

MA

RK

ET RESEA

RC

H

Sustainable Competitive Advantage

• Necessary: Resource bundle that is valuable, rare and inimitable

• Resources are all inputs to production process – land, raw materials, machinery, other fixed assets, patents, licenses, employee skills, management skills, knowledge, ...

• Resource bundle is valuable when it enables the firm to pursue opportunities, neutralize threats, and offer products and services that are valued by customer

• Resource bundle is rare when it is possessed by few, if any, (potential) competitors

• Resource bundle is inimitable when replication of this combination of resources would be difficult and / or costly for (potential) competitors.

• Source: Hisrich / Peters / Shepherd, Entrepreneurship, pp.67-70


MA

RK

ET RESEA

RC

H

Competitor Analysis


• Necessary information about existing / potential competitors

• Current strategy of each primary competitor

• Products / services

• Pricing strategy

• Marketing and distribution strategies

• B2B: Key customers

• Sales, market share

• Possible reaction to new market entry

• Strenghts and weaknesses

• Established analysis tool: Porter‘s Five Forces Model

• Sources of information:

• Public information (incl. Web, newspaper, databases, published financial statements, analyst reports)

• Market research, e.g. Contact to sources of public information

• Internal competitor information (example: job interviews with potential employees)

MA

RK

ET RESEA

RC

H

Porter‘s Five Competitive Forces


Taken from: Volkmann / Tokarski / Grünhagen, Entrepreneurship in a European Perspective, p.132

MA

RK

ET RESEA

RC

H



Source: Hisrich / Peters / Shepherd, Entrepreneurship, p.226

BIC ANGEL INVESTMENTS Dr. Joachim Behrendt

Phone: +90 212 328 1939 Fax: +90 212 328 1933

www.bicangels.com http:/twitter.com/joachimbehrendt http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a

Email: [email protected]

http://twitter.com/joachimbehrendt

http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a



Startnowhow 9.2.17 Market and Competitor Research

Business

Transcript of Startnowhow 9.2.17 Market and Competitor Research