Agenda

1
Agenda

• Silence Cell Phones, Please
• Q A
• Learning Objectives
• Industry Competitor Analysis
• Review Quick Pitch Assignment
• Reminders

2
Previously in Entrepreneurship

• Discovered that Entrepreneurship IS For You!
• Generated Lots of New Business Concepts
• Determined How to Analyze the Feasibility of a
  New Business Concept

3
Learning Objectives

• Determine Whether to Enter an Industry (or Not)
• Analyze Industry Using Porters 5 Forces Model
• Determine Best Entry Strategy
• Evaluate Competitors
• Apply Concepts to Feasibility Report

4
Icebreaker

• In One Minute
• Try to Answer Questions
• In Three Minutes
• Stand Up, Leave Your Desk
• Compare Your Answers with Students Not on Your
  Team
• Correct Answers Revealed Later

5
Entering an Industry

• What Industry Would Be Extremely Difficult to
  Enter (Because of Cost and Giant Competitors) and
  Quickly Become a Leader
• ?

6
Industry Analysis

• Whether to Enter Industry or Not Three Questions
• Accessible?
• Ready for Innovation?
• Profitable Niche Available?
• Firm-Level Factors vs. Industry-Level Factors
  (Porters)

7
Icebreaker Question 1

• Can a Business Be Successful In Spite of Negative
  Industry-Specific Factors?
• Answer
• Why?

8
Horse Buggy Industry

• Discussion Partners
• List Negative Industry-Specific Factors (One
  Minute)
• Radically-New Product to Revolutionize Industry
• List Firm-Level Factors Required to Be Successful

9
Team Discussion

• What Do You Need to Know About YOUR Industry?
• Refer to Dr. Barringers List of Internet
  Sources
• Which Sources Most Helpful?

10
Icebreaker Question 2

• Correct Answer to Second Icebreaker Question?
• Answer

11
Porters Model

• Analyze An Industry Using Model
• Do For Every Industry Before Entering
• What Do You Know About Model?

12
Porters 5 Forces

• Threat of Substitutes in Other Industries
• Threat of New Entrants
• Identify Barriers to Entry (Page 136-7)
• Degree of Rivalry Among Competitors
• Bargaining Power of Suppliers
• Bargaining Power of Buyers

13
Partners Discussion Sony Case Study

• Individually Skim Sony Case on Page 141.
• Company Partners Discuss and Analyze Electronics
  Industry Using Porters
• Substitutes in Other Industries
• Threat of New Entrants (Any Barriers to Entry?)
• Degree of Rivalry Among Competitors
• Power of Suppliers
• Power of Buyers

14
Partners Determine Attractiveness of YOUR
Industry Using Five Forces Model On Page 142
Table 5.2 (15 Minutes)
15
Analyze Results of Porters, Then Ask

• Is Industry Realistic for Us?
• Can Our Firm Do Better Than Others to Deal with
  Industry Threats?
• Is There Unique Position Where We Can Be
  Profitable?
• Can We Identify Business Model (Chapter 6) Others
  Cannot Duplicate?

16
Icebreaker Question 3

• Pool and Spa Industry is a Fragmented Industry
• Answer
• Why Important to Know?
• Want to Be Leader?
• Choose Best Strategy!

17
Common Industry Types Characteristics

• Emerging First Mover Advantages
• Fragmented Competitors Consolidating
• Mature Emphasis on Service
• Declining Leadership, Niche, Harvest Divest
• Global Multidomestic or Global

18
Team Discussion(5 Minutes)

• What Kind of Industry Are You Entering?
• Emerging First Mover Advantages
• Fragmented Competitors Consolidating
• Mature Emphasis on Service
• Declining Leadership, Niche, Harvest Divest
• Global Multidomestic or Global
• Choose Websites on Handout

19
Icebreaker Question 4

• What is Competitor Matrix?
• What is it Used For?
• Answer
• Example How Can Interior Decorator Research
  Analyze Competitors?

20
Competitor Analysis

• Identify Type Direct, Indirect, or Future
• Investigate Sources of Information
• Trade Association Shows Conferences
• Magazines, Publications, Books
• Customers and Vendors/Suppliers
• Purchase Their Products
• Act as Customer Watch Their Stores
• Internet UCF Library
• Review Text My Website for More Suggestions

21
Competitive Analysis GridTable 5.5, Page 149

• Use to Organize Information
• Compare Competitors to Each Other and to Your Own
  Business
• Uncover Ideas/Markets to Pursue
• Identify Primary Source of Competitive Advantage
• Must Include Grid/Matrix in Your Report

22
Competitive Factors

• What Factors to List in Left Column?
• Hair Salon
• Sports Bar
• Used Car Dealership

23
Team Discussion

• Identify Three Closest Competitors to Research
• Identify Competitive Factors to List in YOUR Left
  Column
• Become Spies Fill in Grid/Matrix
• Include in Feasibility Report

24
Did You Learn?

• Determine When to Enter an Industry
• Understand Porters 5 Forces
• Determine Best Industry Entry Strategy
• Evaluate Competitors
• Apply to Feasibility Report

25
Reminders

• Research For Your Report
• Industry Porters Analysis
• Competitors Grid/Matrix
• Classroom Team Meetings with Instructor
• Exam 1 Open in Computer Testing Lab
• Quick Pitch Bring Grade Sheet and Written Pitch
• Chapter 6 Business Models

26
Concept Quick Pitch Assignment

• In-Class
• Instructions
• Venture Lab Link http//www.venturelab.ucf.edu/re
  sources_pitchtemplates.html