3. Discussion Today
The nature of opportunity
How entrepreneurs really
work
Business Plan or
Business Model?
Forecasting
The opportunity model
A reality check: What
entrepreneurs are really
like
9. New Economic Pollution
Paradigms Growth Fossil Fuels
Export/Import
Transport
Farm
Raw materials
Transport
Government
Power
Production Transport
Diversity generation
Warehouse
Management
Supermarket
Conflict
Research & Community
Development
Consumption Education
Regulation
Competition &
Tension
Air Transport
Poverty &
Unhappiness Development Waste
Health
Uncertainty
10. The External Variables
Social Economic
Social and cultural trends State of the economy
and drivers Shift in focus on where to
Reviving historical trends spend money
Influence of international Level of disposable income
trends Level of debt
Product
Opportunity
Gap
Regulation
Technology Restriction of existing
State of the art and regulations
emerging technology New regulations and impact
Re-evaluating existing on product markets and
technology supply chains
Technology applied in new
areas
11. New knowledge
about health, fitness,
Urbanization, food, etc.
New
growing
Changing confidence about Knowledge
Domicile social status, etc. Experience
Outlook
Changing traditions
Perceptual The
Aspirations Changes Environment
Where am I
now?
Where do I Attitudes
want to be?
Peers and Role
New
Changing Models
Global technology
Affluence
Convergence
12. The benefits of exercise and
working out in a gym
Changing
Perceptions Women wanting a safe and
secure environment
Result in creation
Pick up women’s of Fernwood
changing perceptions Women’s Health
Club Concept
Women feeling intimidated in Not working
conventional gyms in the weight out in
areas. conventional
Current situation gyms
13. Support/Facilitate
Intellectual Property
Laws
Capital Raising
Legal System Institutions
Property Laws
Labour Laws
Business Formation Anti-trust Laws
Procedures Environmental
Taxation
Laws
Trade barriers & Opportunity
Licensing &
Protection
Permits
Fiscal & Monetary
Specific Regulatory Bodies
Policy Contract i.e., Pesticides Board
Enforcement
Product Standards
Education & Training
& safety
R&D Policy
Board of
Policing of Investment
Regulate/Control
Encourage/Discourage Corruption
14. Flux & Transformation
Airlines
DVD Rental Computer & Mobile Phone
Automobile Manufacture
Electronic Goods
Decreasing Stability
Changing Technology
Wholesaling
Routine Small Retail Non-Routine
FMCG Manufacturing
Market gardening Consulting Business
Cash cropping Medical Services
Fast Food
Subsistence Farming
Relatively Stable Increasing Complexity
27. Four potential firm opportunity seeking
typologies
Market Orientated Both Market &
Firms Entrepreneurially
High Orientated Firms
High adaptability to the
environment but low
High adaptive and idea
generative idea & strategy
Market Orientation
generative & strategy
ability
development ability
Conservative firms Entrepreneurial
Firms
Low Very low
adaptability to High generative idea
environment & strategy capability
Low High
Entrepreneurial Orientation
29. Brand Signal
Features Benefits Channels
Theme Attributes
Strategy
Characteristics
Central Theme Organically produced high active
(Product Proposition) concentration shampoo with product
variants to suit various conditions.
Underlying
High & discerning Low
Assumptions Rapidly growing
market end. competition segment.
Customers who in segment.
want mass
custom produced
products.
Sustainable Products match
personal values.
30. Customers
Service Convenience Price Quality Relationship
Laundry
Service
31. Two ways to scan for opportunities
Matching product to some
marketspace
Matching marketspace to some
product
32. Change in how and where people buy the product
Risk
None Some Great
None None Low Medium
Change
In User
Some Low Medium High
Habits
Great Medium High Dangerous
33. We can land a man on the moon and return him
successfully to Earth but we are still not too sure
what factors make a firm successful
36. Creativity
The Summarised
Idea
Entrepreneurial
Process
Turn into Opportunity
Innovation Final Commitment
NPD Start-Up
Strategy
Growth
Sales
Sustainability
39. Opportunities
Firm Opportunity
Trajectory
ork
tw
Ne
Firm Alternative
Opportunity Trajectory
Field of Network
Based
Opportunities
Environment
40. The Individual & Family
Family history, Current family
livelihood, Current Family Status.
Family Values
Self Assessment Strategic Business
(Self-efficacy) Analysis
Resources, networks,
capabilities, competitive
Decision Making Skills The Vision Aspiration
Knowledge environment, etc.
Competencies
Personal Goals Family Goals Business Goals
Business Aspirations Family Asset Future
Competencies Considerations Fulfillment (Retirement)
Self view
Knowledge Generational Value Time horizon
Income needs evolution
Production & Type Investment
Operations Time Horizon Grooming options
successors Needs
Marketing View of Risk
retirement Family aspirations Wants management
Personnel
Opportunity Lifestyle Liquidity needs Tax planning
Financial cost of doing
other activities Attachment Alternatives Opportunity
Risk Management cost of doing
Passion other activities
Horizontal and
vertical expansion Exit barriers
Motivational Origins
41. The birth of an Images and
Connections Vision Platform - Perception
opportunity Time & Space Potential
Concept Generator –
Making Connections
Concepts
Learning:
Conceptual World Real World
Sources of Opportunity
Identifying Experimentation
concepts & Testing
Evaluation after
experience “A Narrative”
Ideas
Complete re-
evaluation (seek
further
information)
Structure common to all Evaluated and
opportunities Elaborated Upon
Vision – Outcomes
Time & Space Opportunity
Resources
Networks
Skills, Competencies & Capabilities
Competitive Environment
Strategy – scope & depth
60. Market Research
Less than 2% of filed patents are ever commercialised
Does a new invention have consumer benefits or create any
competitive advantage?
Can consumers accept the new invention?
61. Product Evolution
Pre 1900’s
Laundry Blue
Up to Late 1940’s Solid Soaps &
Powders
Laundry
Detergent Bars
1950’s until present Laundry
Detergents
Powders
Laundry Detergents with
Liquids Special
Detergents Additives
Concentrated
1980’s until present
Laundry
Powders
Laundry
Detergent
Tablets
62.
63.
64.
65.
66. Present time
The Past A Radical change in
technology
Will radically
Thischange the
changes the
parallel of the a
timeline into
market gradually
new industry
We know the past and The effect of competitor
present Without any changes our
innovation will bring product
timeline will remain relatively
evolution
unaltered
67. Media Reports The Continuum from media
reports to wisdom in relation
Ideas to availability and usefulness
Availability Increases
Data
Information
Knowledge
Wisdom
Usefulness Increases
68. Supermarket Retail Prices
New Zealand June 2002
Product Size Pak N Save Woolworths Foodtown Warehouse New World Gilmours
Cockroach Control
Raid Advanced Baits (3 Baits) 30ml $3.75 $3.53
Mortein Roach Trap 4 traps $6.07 $6.99 $6.55 $6.75
No Cockroaches 500ml $10.39
Ant Control
Raid Ant Killer 120ml $3.16 $3.69 $3.70 $3.79 $3.18
No Ants Gel Bait 60ml $7.72 $7.60 $7.99 $7.30
No Ants Bait Stations $3.95 $3.49 $4.99
Mortein Ant Nest Stop 4 baits $3.91 $3.99
Neverong Ant 250ml $2.90 $2.38
Raid Ant Baits 3 pack $4.25
Ant Ban $4.15
No Ants 500ml $10.99
Moths/Other
Raid Moth Proofer $3.65 $3.29 $3.29
Mortein Mosquito Coils 10 coils $2.02
Raid Portable Mozzie Repeller $12.33 $10.65 $10.99 $12.99
Spiral Fly & Mosquito Rep. $11.45
Mortein Mozzie Zapper $10.45
No Fleas/No Spiders 500ml $10.99
69. New Zealand
Sales Forecast (Net Invoice Price*)
Account: Auckland/FoodStuf s/Progressive
Product: Roach Attack 140grams
%Year 5.10% 4.96% 6.95% 10.92% 11.92% 11.92% 11.92% 11.92% 7.94% 5.96% 5.79% 4.70% 100.00%
No Stores July August Sept. October November December January Februrary March April May June Total
Total Account 274 Vol 61.46 59.78 83.70 131.52 143.48 143.48 143.48 143.48 95.65 71.74 74.99 56.63 1209.42
Val $4,447.54 $4,325.97 $6,056.36 $9,517.13 $10,382.33 $10,382.33 $10,382.33 $10,382.33 $6,921.55 $5,191.16 $5,045.33 $4,098.04 $87,132.39
Auckland/ 42 Vol 12.60 12.60 17.64 27.72 30.24 30.24 30.24 30.24 20.16 15.12 12.60 12.60 252.00
New World Val $911.74 $911.74 $1,276.43 $2,005.82 $2,188.17 $2,188.17 $2,188.17 $2,188.17 $1,458.78 $1,094.08 $911.74 $911.74 $18,234.72
Auckland/ 19 Vol 5.70 5.70 7.98 12.54 13.68 13.68 13.68 13.68 9.12 6.84 5.70 5.70 114.00
Pak N Save Val $412.45 $412.45 $577.43 $907.39 $989.88 $989.88 $989.88 $989.88 $659.92 $494.94 $412.45 $412.45 $8,249.04
Auckland/ 130 Vol 25.35 25.35 35.49 55.77 60.84 60.84 60.84 60.84 40.56 30.42 40.56 25.35 522.21
Four Square Val $1,834.33 $1,834.33 $2,568.06 $4,035.52 $4,402.38 $4,402.38 $4,402.38 $4,402.38 $2,934.92 $2,201.19 $2,934.92 $1,834.33 $37,787.12
Auckland/ 14 Vol 2.73 1.05 1.47 2.31 2.52 2.52 2.52 2.52 1.68 1.26 1.05 1.05 22.68
Non Banner Val $197.54 $75.98 $106.37 $167.15 $182.35 $182.35 $182.35 $182.35 $121.56 $91.17 $75.98 $75.98 $1,641.12
Progressive/ 30 Vol 9.00 9.00 12.60 19.80 21.60 21.60 21.60 21.60 14.40 10.80 9.00 5.85 176.85
Foodtown Val $651.24 $651.24 $911.74 $1,432.73 $1,562.98 $1,562.98 $1,562.98 $1,562.98 $1,041.98 $781.49 $270.00 $423.31 $12,415.63
Progressive/ 39 Vol 6.08 6.08 8.52 13.38 14.60 14.60 14.60 14.60 9.73 7.30 6.08 6.08 121.68
Supa Value/Fresh Val $440.24 $440.24 $616.33 $968.52 $1,056.57 $1,056.57 $1,056.57 $1,056.57 $704.38 $528.29 $440.24 $440.24 $8,804.76
74. Product Benefit Strategies
Launch Product Perceived Consumer Benefits Promotional Strategies
Immediate Ant Attack Powder 150grams a) can use indoors Instore POP material
b) Non-Toxic
c) Only use when problem arises
immediate Ant Attack Liquid 70ml a) can use indoors Instore POP material
b) Non-Toxic
c) Only use when problem arises
d) Can be used on walls, etc.
immediate Roach Attack 140grams a) Realign product as a small space air Instore POP material
freshener as well as insect repellent.
immediate Lilin Serai Wangi a) Super strength boosted product. a) Instore POP material
b) New presentation b) regional radio when wholesaler
appointed.
c) Newspaper
immediate Citrus All purpose Cleaner 500ml a) Powderful Natural solvent cleaner a) Instore POP material
b) fresh orange citrus fragrance b) block/demo/promoters
Nov. 2003 Thick Bleach a) More powerful than ordinary bleach a) Instore POP material
b) Can use on toilet bowl and walls b) block/demo/promoters
Nov. 2003 Non-Toxic Knock Down Aerosol a) Non-Toxic a) Instore POP material
b) Safe near food b) block/demo/promoters
c) regional radio when wholesaler
appointed.
Nov. 2003 Non-Toxic Surface Aerosol a) Non-Toxic a) Instore POP material
b) Safe near food b) block/demo/promoters
c) regional radio when wholesaler
appointed.
Feb. 2004 Tea Tree Soap a) Natural Antiseptic a) Instore POP material
b) block/demo/promoters
c) regional radio when wholesaler
appointed.
April 2004 Aromatherapy Bath & Shower Gel a) Use Essential oils a) Instore POP material
b) Full Concept b) block/demo/promoters
April 2004 Incistern blue blocks Price benefit a) Instore POP material
b) block
75. Essential Home Products Pty. Ltd.
Cost & Pricing Matrix
Product Ctn Landed Net Net Net Invoice Gross Invoice RSP Value RSP
Cost Price* Price** Value Price Carton*** Carton****
Roach Attack 140grams 24 $24.73 $70.18 $77.63 $91.33 $96.14 $72.36 $143.52
Ant Attack 150grams 24 $17.48 $40.49 $44.79 $52.69 $55.46 $75.36 $82.80
Ant Attack 50ml 24 $36.46 $40.96 $45.31 $53.30 $56.11 $76.08 $83.76
No-Moz Citronella Cnd. 3x35g 24 $20.77 $31.10 $34.40 $40.47 $42.60 $57.84 $63.60
No-Moz Citronella Cnd. 100g 24 $15.45 $22.30 $24.67 $29.02 $30.55 $41.52 $45.60
Aroma Fun Candle 3x35grams 24 $29.30 $44.60 $49.33 $58.04 $61.09 $82.80 $91.20
Prewash Stain Removal Bar 48 $35.44 $39.67 $43.88 $51.62 $54.34 $73.92 $81.12
Living Scents Wardrobe 30g 24 $12.48 $19.83 $21.94 $25.81 $27.17 $36.96 $40.56
* Net Price: After discounts, trading terms & brokerage fees
** Net Price: After discounts & trading temrs before brokerage fees
***Before GST
****After GST
76. Planned Distribution Matrix
Key A/C Supermrk't Convenience M. Mrk't
Citronella Candle 100grams X X X X
Citronella Candle 70grams X X X
Non-Toxic Knock Down Aerosol X X X X
Non-Toxic Surface Aerosol X X X X
Prewash Stain Removal Bar X X X
Citrus Cleaner X X
Ant Attack Powder X X X X
Ant Attack Liquid X X X X
Roach Attack X X X
Wardrobe Small A/fresh X X X X
77. RSP Position Decision Making Matrix
Product Direct Competitors Pack Price Cost/ Competitor Claims EHP Claims Sugg.
Size Unit RSP
Roach Attack 140grams Mortein Lure 'n' Kill 6 baits $3.34 n/a 1. Honey, malt, soya 1. Repels cockroaches, $5.98
21grams extract moths, silverfish &
2. Lasts 3 months other crawling insects
Sureguard Mini Strips 3 pack $8.89 n/a 1. Kills up to 6 months 2. Non-toxic
60grams 3. No insecticides
Mortein Moth & Insect Strips 3 pack $7.69 n/a 4. Natural citronella &
15 grams Lavender oils
Cedar fresh Moth Balls 18 balls $4.83 n/a 1. 100% natural cedar 5. Leaves clothes &
2. Repels moths & oth. linen smelling fresh
3. Prevents mildrew 6. Takes away the smell
of pets from the home
7. No naphthelene or
PDCB
Ant Attack 150grams David Grey's Ant Granules 500grams $5.39 0.01/g 1. Controls ants outside 1. Non-Toxic $3.45
the home 2. No insecticides
Mortein Ant Sand 500grams $8.39 0.016/g 1. Controls ants outside 3. Natural essential oils
the home 4. Can use inside home
Baygon Insect Dust 250grams $8.53 0.034/g
Hortico Ant Killer Dust 500grams $6.24 0.012/g
Ant Attack 50ml Combat Ant Rid 50ml $2.66 0.053/ml 1. Indoor Ant Liquid 1. Non-toxic $3.49
Baygon Ant Killer 200grams $4.68 $0.02 2. No insecticides
3. Natural essential oils
4. Use inside the home
No-Moz Fly-Away 3x35grams Radience Citronella Candles 3 pack $1.99 Tea candle concept 1. Non-toxic $2.65
Citronella Candle No-Moz Citronella Candles 300grams $2.49- .0083/g claims 1.5% active 2. Safe near food
No-Moz Fly-Away 100grams $2.86 .0095/g citronella 3. 5% active citronella $1.90
Citronella Candle Heat Beads Citronella Candle 300grams $3.99 0.0133/g (not claimed on pack)
No-Moz (small bucket) approx $2.99 0.015/hr 1. Claims 20 hours 4. 3x35grams approx
250grams burning time 27 hours burning time
No-Moz (large bucket) $7.99 0.016/hr 1. Claims 50 hours 5. 100grams approx
burning time 15 hours burning time
Aromatherapy Fragranced Haze Air freshener Candle 120grams $4.53- n/a 1. To help create moods $3.80
Fun Candles 3x35grams $5.20 to relax, relieve stress
Parrot Aromatherapy Candles 300grams $3.59 and invigorate
Romantics Aromatherapy $5.99 1. Awakens your
Candles 2 pack passion, etc
Aroma Scents 6 pack $2.99 1. To delight your
senses
80. Tariff Heading: 3808
Tariff Heading Description
INSECTICIDES, RODENTICIDES, FUNGICIDES,
3808 HERBICIDES,
ANTI-SPROUTING PRODUCTS AND PLANT-GROWTH
REGULATORS,
Column Heading Definitions DISINFECTANTS AND SIMILAR PRODUCTS, PUT UP
IN FORMS OR PACKINGS FOR RETAIL SALE OR AS
PREPARATIONS OR ARTICLES (FOR EXAMPLE,
SULPHUR-TREATED
BANDS, WICKS AND CANDLES, AND FLY-PAPERS)
HS Code SS Units Description Rate #
3808 INSECTICIDES, RODENTICIDES, FUNGICIDES,
HERBICIDES, ANTI-SPROUTING PRODUCTS AND
PLANT-GROWTH REGULATORS, DISINFECTANTS AND
SIMILAR PRODUCTS, PUT UP IN FORMS OR
PACKINGS FOR RETAIL SALE OR AS
PREPARATIONS OR ARTICLES (FOR EXAMPLE,
SULPHUR-TREATED BANDS, WICKS AND CANDLES,
AND FLY-PAPERS):
3808.10 - Insecticides:
3808.10.10 --- Goods, as follows: Free
(a) camphor;
(b) fly-papers;
(c) mosquito spirals and coils
22 kg Camphor
23 .. Fly-papers
24 .. Mosquito spirals and coils
3808.10.90 59 kg --- Other 5%
3808.20.00 - Fungicides 5%
39 kg Mancozeb
40 kg Other
3808.30.00 - Herbicides, anti-sprouting products and 5%
plant-growth regulators
28 kg Goods wholly of, or with a basis of:
(a) pentachlorophenol;
(b) 2,4-dichlorophenoxyacetic acid, its
salts or esters; or
(c) 2,4,5-trichlorophenoxyacetic acid, its
salts or esters
49 kg Goods wholly of, or with a basis of:
(a) chlorsulphuron (C12H12ClN5O4S); or
(b) metsulphuron methyl (C14H15N5O6S)
50 kg Other
3808.40.00 57 kg - Disinfectants 5%
81. Hunters Brands Sdn. Bhd.
Standard Product Costing Sheet
Product: Ant Attack Liquid 100ml Size: 0.1
Formulation No: Date: 16/6/03
Units per packet: 1 No. Packets per Outer Carton: 6
Individual Unit Size: 0.1 Batch Size (Kg): 100
Part 1: Chemical Materials
Ingredient Quantity Price Extension
Ethanol 93 $2.500 $232.500
Clove Oil 5.25 $35.000 $183.750
Peppermint Oil 0.7 $38.000 $26.600
Citronella Oil 1.05 $35.000 $36.750
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
100
Batch Cost: $479.600
Cost Per Kilogram: $4.796
Wastage Cost per raw unit: $0.480
Factor Cost per Packet: $0.480
0.00% Cost Per Outer Qty: $2.878
Ctn Cost per yield: $2.878
Ave. Yield/ Units per Batch: 1000 Date Last Updated:
Part 2: Packaging Materials
Item Unit Mea Quantity Price Extension
Ant Attack Inner Box unit 6 $0.190 $1.140
Ant Attack 50ml Label unit 6 $0.095 $0.570
Ant Attack Bottle unit 6 $0.750 $4.500
Ant Attack 50ml Outer carton unit 1 $0.450 $0.450
$0.000
$0.000
$0.000
$0.000
$0.000
Total Packaging: $6.660
Part 3: Labour
Mean Labour Cost $0.70
Mean Fixed Overhead $0.00
Mean Administrative Cost $0.00
$0.70
Part 4: Total Product Cost
Unit Carton % Total
Materials $0.480 $2.878 28.11
Packaging $1.110 $6.660 65.05
Labour $0.117 $0.700 6.84
Total $1.706 $10.238
Part 5: Selling Prices and Margins
Sell Price Gross Contribution % Margin
Transfer Price -$10.24 #DIV/0!
Sell 1: Whole/Distributor -$10.24 #DIV/0!
Sell 2: Retailers -$10.24 #DIV/0!
Sell 3: Export -$10.24 #DIV/0!
Sell 4: Other -$10.24 #DIV/0!
86. Randomness &
Changes in any of Unexpectedness Interrelated Factors
A random or unexpected
the factors event that creates an
opportunity
Social Economic
Stage of economic
Social and cultural trends
development.
and drivers.
State of the economy.
Reviving historical trends.
Level of disposable income.
Influence of international
Macroeconomic, general
trends.
industry conditions, financial
Changing demographics.
&geographical environment.
Styles, fashions & fads. Product
Opportunity
Gap
Technology Government &
Current state of the art and Regulation
emerging technology.
Government needs &
Re-evaluating and utilizing
priorities.
existing technology in new
Restriction by Government.
areas.
New laws & regulations and
New knowledge.
impact on product markets
Invention.
and supply chains.
Trade liberalization.
Our Inner Self
New Our upbringing, domicile outlook, experiences,
interests, skills & abilities, assumptions, beliefs,
Knowledge or attitudes, perception, cognitive processes, patterning
and biases, our inner psych and emotions, imagination,
Information energy, and passion, etc.
The way we interact and stimulated by the
environment and make connections
87. Automobile Airlines
Manufacturers
Mega
Banks
Large Pharmaceutical Business
Companies
Universities
Independent Retail
Chains
Large manufacturing
Large
Mall Type Shopping Centres
Business
Modern Extensive
Farming Enterprises
Lifestyle Businesses
Independent
specialty Retail SME Level
Specialty
Wholesaling
Corner Shops
Ambition, sense of
mission, attitudes, beliefs,
values, available (and Street Stalls Micro-
potential resources), self
entrepreneurs
efficacy, networks, skills, Micro-enterprise
competencies, and
capabilities, etc.
Vision Platform
88. Characteristics of Characteristics of Under- Characteristics of a Characteristics of
Traditional Economies developed Economies Developing Economy Developed Economies Post Industrial
Subsistence agriculture based
Economy
Some simple infrastructure An improving rate of saving leading The economy relies almost
on traditional knowledge development to a higher rate of investment completely on consumerism
Low level of urbanization, The adoption of basic modern which becomes a driver of the for growth and prosperity,
majority of population live in a farming techniques economy often criticized for excess
rural and/or coastal existence Characteristics of Post
Reliance on natural resource The acquisition of technology
Unwillingness to accept new factors to create new industries, through JVs, licensing, education Industrial Economies
ideas and little innovation, even i.e, fertile land and favourable abroad, consultants, etc. Developed
resistance to new ideas, lack of climate for specific agricultural Through employment growth local A rapid decline in the
Economy
research and development and/or commodity crops, or incomes grow and begin a surge in agriculture and industrial
Extremely conservative society abundant labour, etc. (It is these consumption sectors (industries closing down
Very little credit finance capital factors that provide first There is a shift from rural to urban as they lose international
available, low level of savings opportunities) areas in search of employment and competitive advantage) and a
and very immature cash Very high dependence on imports opportunities rise in the services sector
economy anyway, little or no Fragmented markets that are yet High level of research & Corresponding increase in the
investment to segment development imports of consumer goods
Developing
Extremely low level of A limited range of industries based High level of industrial from lower cost producing
infrastructure, poor transport on cost advantages owned by an Economy innovation nations
routes and communication elite group of society High market segmentation A decline in some urban areas
Feudal and/or corrupt form of Usually highly regulated and and specialization and a rise in other parts
government where resources restricted economy (though not Sophisticated logistic supply (increase in inner suburban
may be diverted to necessarily) chains living)
unproductive projects Higher emphasis on education Very high number of SMEs Investment tends to be wealth
Very low level of education Surge in infrastructure projects High level of firm and based focusing on minimal risk
Under-developed
Very poor ability to recover that spur on economic growth individual compliance projects like shopping malls
from natural disasters Economy through improved transport links, regulation Innovative start-ups often come
Low national vision etc. Vast majority of population from new arrivals to the
International markets entered resides in urban areas country (exception of Japan)
and channels developed through Very stable institutional Increasing rates of
OEM and contract production environment unemployment and often
Increasing wages, productivity, Abandonment of elite and shortage of manual labour as
Government tries to attract foreign aid
Traditional and investment
and employment leading to rising favored groups within the other types of careers are
living standards business sector where an preferred
Economy Ability to allocate resources within
Increasing professionalization of egalitarian values prevail Usually a slightly declining
economy not efficient at this stage
workforce and management society population which signifies a
Very low rates of SME formation and
needed to compete Very high value placed upon declining workforce size, this
high informal economy
internationally education in society lowers economic growth rates
89. Market segmentation Still under-developed logistic systems
still weak
Post Industrial Some wealth driven businesses (i.e.,
Economy hotels) by elite families
Increasing market
globalization
Developed Economy
Under-developed
Local firms
Economy exporting to the
Still building infrastructure world
Some rent-earning
feudal elements
Thailand Developing Economy
Still factor and investment rather
than innovation driven
Traditional
Economy Malaysia
Still some small remote areas
90. Changing Demographics Rapid Economic Growth
Positive
(Rural-urban drift) geographic
disposition
Increased Investment
Increased Saving
Population Growth
Increased Demand
Increased Opportunities
Those with natural
New Skills & talents emerge
Increased Capabilities quickly
Increasing Education
Knowledge
Emerging
Learn as Culture
you go
Imported Technology
91. Shifting Values
Traditional/colonialization Developing Economy
Agriculture based lifestyle Urban based lifestyle
Connection with extended Cut off from extended
family family
Subsistence orientation Planning orientation
Rural value base Changing to urban values
Acceptance of situation Seek to improve situation
Little saving Saving for capital
Social mobility – end of feudalism
New wealth – New poverty
92. 1750 1775 1800 1825 1850 1875 1900 1925 1950
Bismarck instituted health
& accident insurance
Armed conflict forced
American merchants to Establishment of cotton industry in Regulation instituted to
manufacture American South – invention of the gin control banking, railways, The beginnings of
business (a political governments using fiscal &
The use of steam technology for transport – the railways Britain
invention) monetary policy to control
The development of the American West
The decline of mercantilism the economy
Frederick Taylor developed
Development of canals in Britain and America
“Scientific Management”
Development of the steam engine
Ocean going coal based steam ships
Whaling industry for lamp oil & whalebone
Early beginnings of the petroleum industry
Spinning Jenny First Sears Catalogue
Flying shuttle Formation of DuPont
invented by James Borden develops the published
invented by John by Eleuthère Irénéé du
Hargreaves process to produce Henry Ford produces first mass
Kay (1733) Pont
condensed milk produced automobile
Use of water frame to spin Development of the The invention of the
cotton credited to Richard electronic telegraph telephone switchboard
First air conditioner by Willis
Arkwright Formation of the Western Union Haviland Carrier
Telegraph Company Invention of the jet engine
Spinning mule invented by
Invention of the tire Refrigerated railway box
Samuel Crompton
cars (ice system)
First useable electric
First self powered First electric power
Discovery of light globe Refrigerated railway box
automobile distribution
aerodynamic principals Invention of home cars (mechanical system)
by George Cayley refrigerator by Jacob
Invention of the four-
Perkins Wright Brothers flew the first
stroke engine
airplane
First manned glider by
Otto Lilienthal Between the wars
The post war
The industrial revolution in Great Britain, and collapse of
The liberal age growth years
Europe and the United States international trade
93. Automobile
Chassis Engine Tires Control & Braking System Environment
management
Systems
Rubber
Suspension Fuel Electronics Alloys Road Rules
systems
Compression Chemical Hydraulics Roads &
Steel Microprocessors
& Processes Carriageways
Combustion
Plantations
Time & History
95. Sources of Opportunity
(Opportunity Anchors)
Market Void Technology Structural changes Resource Regulation Non-Innovative
Infusion Monopoly
Incongruities Invention Changes in Physical Resource Effect on Personal
Industry Product Service &
Structure Consulting
Incremental Capability Resource
Demographic Effect on Process
Improvement New
Changes Duplication
Processes
Legal Resource
Adaptation
Perceptual Adaptation, Extension
Brand Resource
Changes combination &
integration
New Processes
Copy/
Scarcity Power
Imitation
New Materials
Cost/value Shift
Strategies for each source of opportunity
97. Figure 9.9. The General Tools of Intellectual Property in Business Strategy
Influence of
New
Product Development Technology
- Invention (new to the world)
- New to company product Competitors
- New Style, variant or benefits
Patent, Registered
Design, Proprietary Influence of
Knowledge (secrecy and Product
non-disclosure Lifecycle
agreements)
Process Development
(manufacturing)
Patent, Proprietary
Knowledge (secrecy and
non-disclosure
The Market
agreements) The General Business
Market Strategy Place
Strategy
Market parameters (mix) Values
Channels Expectations
Knowledge Emotions
Image & Story (target)
Knowledge, Creativity, Recognition
Branding, Trademarks, Potential
Copyright Emotional
Connections