Competitve Strategy (CSTR)
- Prashant Kale, Rice university
- Akbar Zaheer, Carlson
Decision Modeling and Optimisation (DMOP)
- Sumit M. Kunnumkal, ISB
- Milind G. Sohoni, ISB
Global Economics (GLEC)
- Amartya Lahiri, British Columbia
- Krishna B Kumar, RAND Corporation
Marketing Decision Making (MKDM)
- Pradeep Bhardwaj, Kenan Flagler
- Jagmohan S. Raju, Wharton
Prof. Kale took strategy to a different level. By far the best Prof. we ever had. His decoding of Apple, Southwest, Domino's etc. was awesome. Porter's 5 forces were the new mantra for term 2. Global economics was also insightful. Prof. Krishna Kumar way of teaching was awesome. I hope someone would have explained the Why? part in economics as he did, eco would never have been a boring subject. Also the best part was the video on commanding heights. It a must watch video for all -
Mark strat was the biggest climax. Our group came last but we had lot of fun. Till the end we were not able to understand what were we doing wrong. The IITian and the doctor were scratching their head out but none of us had a clue.
Conjoint analysis was also interesting. Not that we understood a lot but it brought science into a subject like marketing.
Monday 9 June 2008
Prof. Ram on Evaluating Business Ideas
Date: June 09, 2008 Time: 1900 - 2000 Venue: AC 2 LT
Success rate of a venture is miniscule – 2 out of 10 projects funded by VCs make big money, 3 make decent money and the rest 4-6 fail
Globally, 10% of new ventures cross 6 years
E.g. of successful products:
YouTube
Ipod
Facebook
Mobile
ISB
IPL
Skype
KingFisher
ISB – salient points:
1 year vs 2 years
Work experience
International faculty
ROI / Placements
Brand
Affiliations with top univs
Infrastructure
Location – India
Criteria for an applicant to choose the product (ISB):
High level of discontent/dissatisfaction of applicant
High level of criticality of an MBA in boosting the applicant’s career
Mobile –
Level of criticality is fluctuating – sometimes very high, sometimes not so high
Level of discontent with existing options (landlines) is high
Level of criticality changes with time, income, usage etc etc
Opportunity lies where the criticality is high and the level of discontent is also high
E.g. – Mineral water
Discontent level – size of bottle – 1 segment of the bottle was dissatisfied with 1 litre bottle, so 200ml bottles came up; 20 litre bubble bottle was reqd by another segment
Discontent with the packaging, distribution of existing options
Criticality of “high quality drinking water” is felt by everybody in the society
Skype – lot of ppl feel the need to call up their friends etc using means other than mobile, landline – market size is there; level of discontent is high
Walkman/ipod – people on the move (travelling) need some diversion/entertainment - level of discontent is high – opportunity lies therein
Hiring a bicycle – criticality is when there is no other means of transport – at such times, the level of discontent is also higher
Iridium – Failed because of high price – was invented to remove the discontent people had with existing phones – instead it created discontent in terms of expensive alternative and was very heavy – whereas it was positioned for ppl on the move (while flying); it had technological problems – connectivity was low
Vacuumiser – company from Bombay – Real value product (Small fire extinguishers company) – was a Disaster
It’s a storage for food – keeps it hot with aroma for a long time
Vacuumiser tried to educate ppl that u need a better product – don’t cook in the evenings – Indian market was not ready for it – low criticality – ppl either wanted freshly cooked food or were happy eating wat was thr in the fridge
Discontent with existing options was low – like tiffin boxes
Vacuumiser was highly priced – it was Rs.900 per container – This was quite a few yrs back – Each person needed 2-3 containers to store their meals
Low quality – Life of the product was short
Real value fire extinguisher advertised the problems of a fire and created high discontent in a low discontent market thru advertising and sensitised ppl that a fire could come up anywhere and it doesn’t cost a lot to buy a real value fire extinguisher (Rs.100) – ppl started fearing fire and began buying it
Opportunity needn’t be a product – it needs to be a value creating experience for the customer
E.g. of FedEx, Goodnight, Nirma, credit cards – unaddressed, submerged needs –identify such a need – that is the opportunity
If there is a high criticality need where the consumers are highly discontent with existing options, satisfy that need and educate the consumer on how ur product/service satisfies that need – advertising
E.g.: No smoke…No cream…Sweet dreams…Goodnight
Customer criticality is very dynamic – it keeps changing – that’s why we have product life cycles- with one product replacing an existing one
Identify the market size – demand must be more than the supply
Technology, distribution, scalability
Finance
ROTI – Return on Time Invested
My own capabilities – SWOT analysis – the above talks about “O” – this must be balanced by my “S” or the team’s “S”
Idea workshops
Visit to labs
Look up Business magazines from 10 years back
Keep your antennae open
Success rate of a venture is miniscule – 2 out of 10 projects funded by VCs make big money, 3 make decent money and the rest 4-6 fail
Globally, 10% of new ventures cross 6 years
E.g. of successful products:
YouTube
Ipod
Mobile
ISB
IPL
Skype
KingFisher
ISB – salient points:
1 year vs 2 years
Work experience
International faculty
ROI / Placements
Brand
Affiliations with top univs
Infrastructure
Location – India
Criteria for an applicant to choose the product (ISB):
High level of discontent/dissatisfaction of applicant
High level of criticality of an MBA in boosting the applicant’s career
Mobile –
Level of criticality is fluctuating – sometimes very high, sometimes not so high
Level of discontent with existing options (landlines) is high
Level of criticality changes with time, income, usage etc etc
Opportunity lies where the criticality is high and the level of discontent is also high
E.g. – Mineral water
Discontent level – size of bottle – 1 segment of the bottle was dissatisfied with 1 litre bottle, so 200ml bottles came up; 20 litre bubble bottle was reqd by another segment
Discontent with the packaging, distribution of existing options
Criticality of “high quality drinking water” is felt by everybody in the society
Skype – lot of ppl feel the need to call up their friends etc using means other than mobile, landline – market size is there; level of discontent is high
Walkman/ipod – people on the move (travelling) need some diversion/entertainment - level of discontent is high – opportunity lies therein
Hiring a bicycle – criticality is when there is no other means of transport – at such times, the level of discontent is also higher
Iridium – Failed because of high price – was invented to remove the discontent people had with existing phones – instead it created discontent in terms of expensive alternative and was very heavy – whereas it was positioned for ppl on the move (while flying); it had technological problems – connectivity was low
Vacuumiser – company from Bombay – Real value product (Small fire extinguishers company) – was a Disaster
It’s a storage for food – keeps it hot with aroma for a long time
Vacuumiser tried to educate ppl that u need a better product – don’t cook in the evenings – Indian market was not ready for it – low criticality – ppl either wanted freshly cooked food or were happy eating wat was thr in the fridge
Discontent with existing options was low – like tiffin boxes
Vacuumiser was highly priced – it was Rs.900 per container – This was quite a few yrs back – Each person needed 2-3 containers to store their meals
Low quality – Life of the product was short
Real value fire extinguisher advertised the problems of a fire and created high discontent in a low discontent market thru advertising and sensitised ppl that a fire could come up anywhere and it doesn’t cost a lot to buy a real value fire extinguisher (Rs.100) – ppl started fearing fire and began buying it
Opportunity needn’t be a product – it needs to be a value creating experience for the customer
E.g. of FedEx, Goodnight, Nirma, credit cards – unaddressed, submerged needs –identify such a need – that is the opportunity
If there is a high criticality need where the consumers are highly discontent with existing options, satisfy that need and educate the consumer on how ur product/service satisfies that need – advertising
E.g.: No smoke…No cream…Sweet dreams…Goodnight
Customer criticality is very dynamic – it keeps changing – that’s why we have product life cycles- with one product replacing an existing one
Identify the market size – demand must be more than the supply
Technology, distribution, scalability
Finance
ROTI – Return on Time Invested
My own capabilities – SWOT analysis – the above talks about “O” – this must be balanced by my “S” or the team’s “S”
Idea workshops
Visit to labs
Look up Business magazines from 10 years back
Keep your antennae open
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