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2. 2. 2 Why go to college? In 2012 75% percent of 193,000 U.S. students entering college said a reason to go to college is "to be able to make money."1 82% said being very well off financially is a very important or essential personal goal.1 1 Higher Education Research Institute at UCLA, The American Freshman: National Norms Fall 2012, January 2013, http://www.heri.ucla.edu/briefs/TheAmericanFreshman2012- Brief.pdfhttp://www.heri.ucla.edu/briefs/TheAmericanFreshman2012-Brief.pdf (accessed July 28, 2014).
3. 3. 3 Skills most sought by employers1 critical thinking problem-solving execution-focus communication 96% of higher ed. provosts said they were doing a good job preparing students for success in the work force.2 Only 11% of business leaders agreed. 2 1 National Association of Colleges and Employers, "The Skills and Qualities Employers Value Most in Their New Hires," Job Outlook Survey 2014, http://www.naceweb.org/about-us/press/skills-employers-value-in-new-hires.aspx (accessed 9/6/14). 2 Grasgreen, A., Ready or Not, Inside Higher Ed., https://www.insidehighered.com/news/2014/02/26/provosts-business- leaders-disagree-graduates-career-readiness (accessed 12/26/14).
4. 4. 4Please do not share outside the Dartmouth Community without permission. Copyright G. Fairbrothers 2004-2014 All rights reserved. February 10, 2015 Competition
5. 5. Competition Competition brings out the best in products and the worst in men. - - David Sarnoff, first president of RCA and pioneer in consumer television
6. 6. Competition Who is the competition, present and future?
7. 7. #5 The Competition Who is the competition, present and future? Dont say, no one!
8. 8. #5 The Competition Who is the competition, present and future? Dont say, no one!
9. 9. Welcome to Krystyna Miles Winners of the Phillip R. Jackson Engineering Sciences Prize Shinri Kamei traybienllc@gmail.com the way to serve. An improved serving tray for higher efficiency and lower costs in restaurants, catering businesses, casinos, and more.
10. 10. Our solution is simple and easy to use Laminated wood fiber: dishwasher safe, durable Patent pending Same functionality as standard tray: holds plates, stemware, glasses, cutlery Clear Need | Market Opportunity | Moving Forward Tray Bien 10 Sustainable material
11. 11. The Night RunnerTM by Granite State Gear The Headlamp Small beam Little light Bouncing Uncomfortable Limited peripheral vision Breath can fog up vision The Night RunnerTM Wide swath Large amount of light Stable Comfortable and adjustable Waist easily carries weight Rechargeable battery (10 hrs)
12. 12. GOMOTION WORLD-WIDE LAUNCH AT OUTDOOR RETAILER SUMMER MARKET, AUGUST 9-12, July 4, 2007 - Dedham, MA GoMotion, Inc., a new company dedicated to developing innovative, body-mounted lighting systems and accessories for active-lifestyle enthusiasts, announces its world-wide launch at the upcoming Outdoor Retailer Show at the Salt Palace, August 9-12 in Salt Lake City, UT.
13. 13. The Company In 2006, Jonathan Craig and co-founder Bob Hunnewell launched GoMotion, Inc. Working with a team of engineers and designers, they created a product line of body mounted lighting systems for active outdoors people. Designed with trail-runners, street runners, Nordic skiers, hikers and walkers in mind. GoMotions products are revolutionizing the Outdoor Recreation industry. http://www.gomotioninc.coml
14. 14. 14 Alternatives Porsche Cayenne Range Rover
15. 15. King Arthur Flour, October 2008: Compared to what? Karen Gouse Colberg T91, General Manager, King Arthur Flour, January 27, 2009
16. 16. The Competition Who is the competition, present and future? Dont say, no one! What are your barriers to competition? How will you defend profits and market share?
17. 17. 17 Utility and Value The larger theme is the ordeal of what could be called "commodity hell," the place where executives find themselves when they cannot convince customers that their widgets or services are better than those of their ever-burgeoning competitors. All they can say is: "Yep, we got 'em too." - - Todd G. Buchholz, Drowning in Red Ink, Wall Street Journal, May 30, 2007; p. D8
18. 18. 18 Utility and Value The larger theme is the ordeal of what could be called "commodity hell," the place where executives find themselves when they cannot convince customers that their widgets or services are better than those of their ever-burgeoning competitors. All they can say is: "Yep, we got 'em too." - - Todd G. Buchholz, Drowning in Red Ink, Wall Street Journal, May 30, 2007; p. D8
19. 19. Your value proposition can be your competitive advantage
20. 20. Possible components of a value proposition Product Price Access Service Experience
21. 21. PRODUCT Cost of manufacturing Aesthetics Availability Emotional connection Useful life Guarantee Manufacturing Integration Follow on product Flexability Easy to find Performance Quality Features Brand Selection Search Ease of use Safety Durability and ease of repair
22. 22. PRICE Financing Comparative Perception Relation to need Switching cost Margin Total cost of ownership One time price/structure Residual value Visible Consistent Reasonable Stable Comparable
23. 23. ACCESS Channels Web presence Transportability Cost Delivery Regulation Limited Access Location Easy to find Convenience Timeliness
24. 24. SERVICE Access to service Replacement Quality Customer care Warranty Maintenance contract Cost of service Automated Relationship with customer Use service as prod dev tactic Self help Ordering Delivery Return Use and repairs
25. 25. EXPERIENCE Expectations Consistent experience Follow up/support Function and utility Emotion Fun Social proof
26. 26. Competitive Advantages Quality (Mercedes) Customer service (Starbucks) Supply/inventory systems (WalMart) Location (Starbucks, Walmart) Design and functionality (IPod, iPhone) Market Segmentation (Bose) Scope of product line (Amazon.com) Product innovation (Medtronic) Effective sales force (Pfizer) Manufacturing capacity (Unilever Take Control) Product selection (Tiffanys, Home Depot-Lowes) after Dorf & Beyers, Technology Ventures, 2005; p 72
27. 27. Other barriers to competition Legal or regulatory (IP, licenses, leases) Economies of scale Access to resources, suppliers/distributors, or capacity Technical expertise Branding First mover advantage
28. 28. Barriers to competition Legal or regulatory (IP, licenses, leases) Economies of scale Access to resources, suppliers/distributors, or capacity Technical expertise Branding First mover advantage
29. 29. Barriers to competition Legal or regulatory (IP, licenses, leases) Economies of scale Access to resources, suppliers/distributors, or capacity Technical expertise Branding a result of success, not a cause First mover advantage
30. 30. Barriers to competition Legal or regulatory (IP, licenses, leases) Economies of scale Access to resources, suppliers/distributors, or capacity Technical expertise Branding First mover advantage
31. 31. First Mover Advantage PIMS and ASSESSOR studies, 1980s: market pioneers have enduring advantages in distribution, product-line breadth, product quality, and market share Tellis, Gerard J. and Peter N. Golder, First to Market, First to Fail? Real Causes of Enduring Market Leadership, Sloan Management Review; Winter, 1996; 37, 2, p. 65-75
32. 32. Ever hear of this? MPMan F10, Eiger Labs 1997
33. 33. or these? MPMan F10, Eiger Labs 1997 Rio PMP300, Diamond Multimedia 1998 Personal Jukebox (PJB-100), Compaq 19992001 10 gb Creative Nomad Jukebox $269.99 2001 20 gb Rio Riot $399
34. 34. first mover advantage? Apple, 2001
35. 35. More than the IPOD Piper Mobile (Mobius) Thayer School 2000-2002
36. 36. Apple inventor of the PDA Apple: 1993-1998 Palm: 1996 Handspring: 1999-2003
37. 37. First Mover Advantage PIMS and ASSESSOR studies, 1980s: market pioneers have enduring advantages in distribution, product-line breadth, product quality, and market share Tellis, Gerard J. and Peter N. Golder, First to Market, First to Fail? Real Causes of Enduring Market Leadership, Sloan Management Review; Winter, 1996; 37, 2, p. 65-75
38. 38. First Mover Advantage PIMS and ASSESSOR studies, 1980s: market pioneers have enduring advantages in distribution, product-line breadth, product quality, and market share Oops: data included only survivors; lumped all early entrants together (first- movers and early followers) Tellis, Gerard J. and Peter N. Golder, First to Market, First to Fail? Real Causes of Enduring Market Leadership, Sloan Management Review; Winter, 1996; 37, 2, p. 65-75
39. 39. First to Market, First to Fail Failure rate of pioneers (first to sell in a category) is 47%. Failure rate of fast followers is minimal. Pioneers are current leaders in only 11% of the categories. Pioneers mean market share: 10% Fast followers mean market share: 30% Tellis, Gerard J. and Peter N. Golder, First to Market, First to Fail? Real Causes of Enduring Market Leadership, Sloan Management Review; Winter, 1996; 37, 2, p. 65-75
40. 40. 40 First mover advantage (?) - the mouse, Doug Engelbart (Stanford Research Institute), Bill English (Xerox PARC) (1951, 1963) - Sketchpad, WIMP (Xerox PARC) (1968) - U-matic, Betamax (Sony, 1969) - CP/M (Gary Kildall, 1974) - Visicalc (1978) - Wordstar (1979) - Prodigy (1988) - Mosaic (1993) - bot fed search engines (December, 1993): JumpStation, the World Wide Web Worm, and the Repository-Based Software Engineering (RBSE) spider - Friendster
41. 41. 41 First mover advantage (?) - the mouse, Doug Engelbart(Stanford Research Institute), Bill English (Xerox PARC) (1951, 1963): Apple, Microsoft - Sketchpad, WIMP (Xerox PARC) (1968): Apple, Microsoft - U-matic, Betamax (Sony, 1969): JVC & VHS - CP/M (Gary Kildall, 1974): MS/DOS - Visicalc (1978): Microsoft - Wordstar (1979): Microsoft - Prodigy (1988): AOL - Mosaic (1993): Microsoft - bot fed search engines (December, 1993): JumpStation, the World Wide Web Worm, and the Repository-Based Software Engineering (RBSE) spider: Yahoo, Google - Friendster: MySpace, Facebook
42. 42. First mover advantage (?) - Chux disposable diapers Proctor & Gamble - Reingold Brewerys Gablinger, Meister Brau light beers Miller Lite - Royal Crown Diet Cola Pepsi, Coke - Wisk liquid detergent Liquid Tide - California Cooler wine cooler Gallo, Seagrams - DHL Federal Express - 84 Lumber, Handy Dan, Builders Square Home Depot, Lowes - Ampex video recorder Sony, JVC, Matsushita - Circuit City Best Buy - Book Stacks Unlimited (1992) Amazon (1994)
43. 43. 43 Is there a first mover advantage?
44. 44. 44 Early Adopters Early Majority Laggards NumberofCustomers Time Late Majority Innovators Adoption Lifecycle Is there a first mover advantage? Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers, Geoffrey Moore, Harper Business Essentials, 1991, 1999
45. 45. 45 Early Adopters Early Majority Laggards NumberofCustomers Time Late Majority Innovators Adoption Lifecycle The Race to the Chasm Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers, Geoffrey Moore, Harper Business Essentials, 1991, 1999
46. 46. First mover advantage The early bird may get the worm but the second mouse gets the cheese!
47. 47. Competition Who is the competition, present and future? Dont say, no one! What are your barriers to competition? (IP?) How will you defend profits and market share? How are you different? A features table is a great tool.
48. 48. PBK AMS Buysense Fedmarket/Bidengine Services to government end-user focused. Not dependent on government buying bureaucracy. yes no focused more to vendors. Only resource to buyers is a vendor directory a full-service resource to end-users and purchasing agents alike yes no no accessible to all with no training or software acquisition required yes partially yes query-based decision tree to analyze and define purchase, assess compliance yes no no data base of pending purchases (for comparison and bundling), GWACS and IDIQ's so purchaser can search for existing resources yes no GWACS analyzes and certifies regulatory compliance; provides full documentation of compliance actions and status, including warrant of compliance yes no no capability to query FPR database and provide data on recent comparable purchases yes no no active vendor searching and recruitment through smart-searches, links to trade databases, trade associations and evolving vertical networks. yes no - catalog or link based partial - prominent feature is a vendor directory assistance in preference goaling yes no no
49. 49. PBK AMS Buysense Fedmarket/Bidengine Fedcenter (Digital Commerce) eFed (NIC Comerce) CommerceOne partnership Manugistics - Intelisys partnership Public Sector IT Network US government Digital Commerce filed 5/2/00 for IPO announced March 28, 2000 (Lockheed, Boeing, Rayethon, etc.) announced may 4, 2000 link to consortium companies (see "other" at bottom). Focus on IT sector only. General features one site for all of the public sector yes state and local, institutions of higher learning partial - for all US some states and federal US all US and foreign no - defense and aerospace marketplace for manufacturers, suppliers, airline and government customers yes - claims to be one solution for all b2b and b2g, all business sectors all levels, US entirely Web-based - no software to load, maintain, upgrade; no training needed to start using yes appears to require some software installation and training mixture of platforms - links, CD's, listings, Web-based. yes no - proprietary software not announced no - mainly proprietary software. Online storefronts can be created with browser-based tools. no - link to consortium resources active vs. passive searching; smart-search based - no catalog listings to recruit and maintain yes passive - catalog listings by vendors in their virtual mall Bidengine is a specialized search engine that sources procurement pages containing opportunities to sell products, including government, buying cooperatives and large companies. no. Primarily a shopping marketplace. no - buyer initiates searches of supplier network no no - focused on trading partners sharing, viewing and executing decisions. Catalog/on-site storefront focus. no Services to government end-user focused. Not dependent on government buying bureaucracy. yes no focused more to vendors. Only resource to buyers is a vendor directory yes - focused primarily to credit-card purchases no - focuses on buying bureacracy no not announced no a full-service resource to end-users and purchasing agents alike yes no no yes - focused primarily to credit-card purchases not clear no no no accessible to all with no training or software acquisition required yes partially yes yes no - proprietary software not announced no no query-based decision tree to analyze and define purchase, assess compliance yes no no no "requirements analysis" no no no data base of pending purchases (for comparison and bundling), GWACS and IDIQ's so purchaser can search for existing resources yes no GWACS no no no no no analyzes and certifies regulatory compliance; provides full documentation of compliance actions and status, including warrant of compliance yes no no links to arnet and numerous FAR sites "government purchase rules", "business rule development" no no link to traditional law practice in contracts and technology capability to query FPR database and provide data on recent comparable purchases yes no no no ability to "conduct analyses" no no links to marketing firm and network of publications active vendor searching and recruitment through smart-searches, links to trade databases, trade associations and evolving vertical networks. yes no - catalog or link based partial - prominent feature is a vendor directory no - oriented toward company listings. Sells listed company products. no no no links to marketing firm and network of publications assistance in preference goaling yes no no no no no no no bidder qualification yes no no no no no no no presentation of demand aggregation opportunities yes no no no no no no no bid definition yes yes? no no no no no no bid publication yes yes? no no no no no no bid solicitation yes no no no no no no no bid collection (including auctions, spot markets) yes planned later no no no no no no bid analysis and comparison yes planned later no no no no no no approval process support, including tracking, automatic notices for approval, and "nagging function" yes purchase tracking planned no stategov - developing requisitions, generating RFQ's, order processing, invoicing. fedcenter - none; shopping environment order status tracking not announced tracking purchases no transaction closing support - automated payments, etc. yes planned later planned later shopping environment only (federal); transaction tracking and reporting (stategov). through partnerships with large financial institutions, provides seamless e-purchasing integration with government purchase cards yes? yes no transaction memory for repeat purchases, GWACS, IDIQ's yes no no no purchase histories, ability to "conduct analyses" not announced not announced no Services to vendors notice and active sourcing for government opportunities yes no yes - Bidengine no no not announced no links to marketing firm and network of publications links and access to government buyers without the need to post and maintain catalogs yes no - catalog based in a site "community" no - catalog based no - vendors maintain storefronts no not announced not clear links to marketing firm and network of publications IDIQ and GWACS databases yes no GWACS no GWACS, IDIQ support not announced no no FPR database query capability to see comp. purchases in the recent past yes no no no purchase histories, ability to "conduct analyses" no no no active recruiting into preference and goaling opportunities yes no focuses demand to preferred suppliers no no no no no no demand aggregation presents larger opportunities yes no no no no not announced no no presentation of bundling opportunities yes no no no no not announced no no indivdual technical/legal support in qualifiying and bidding yes no links and publications no no no no link to traditional law practice in contracts and technology e-commerce transaction modules cut costs and time yes planned later planned later stategov - "catalog management and transaction capability", "order management and transaction tracking" financial "e-purchasing integration" yes yes no coordinated forecasting, planning and replenishment for inventory and scheduing management yes planned later no no no no no no support in legislative budgeting, appropriations, earmarking yes no no no no no no link to traditional law practice in contracts and technology availability of data and analyses of demand, actions, trends, forecasts yes planned later - "enhanced information for analysis and decision support" no no market research no no links to marketing firm, research firm, network of publications Revenue models 1. Transaction-based charges yes paid by vendor no yes, on credit card sales yes? not announced no 2. Fee for listing/qualification and bid process services provided yes no free vendor listing; fees for catalog posting. Some sales of "how-to" videos, etc. fees to vendors to list, open storefronts not announced not announced at individual firms 3. Sell knowledge yes no no no market research not announced not announced at individual firms 4. Fees for repeat purchase facilitation/management yes no no not clear not announced not announced no 5. Fees for on-going communication between buyer and seller to streamline inventory management and manufacturing scheduling yes no no no not announced not announced no 6. Fee for services tracking appropriations and participating in the budget process yes no no no no not announced at individual firms 7. Membership/subscription fees maybe - not counting on them paid by government buyer yes yes not announced not announced no The government has sites online and restructuring initiatives in some areas, including CBDNet (Commerce Business Daily Network), FACNET (Federal Acquisition Computer Network), NAIS (NASA Acquisition Internet Service), EPS (Electronic Posting System a joint effort of NASA, GSA, the Air Force, DOT, Dept. of Treasury, and DOC), DODBusOpps (Dept. of Defense Business Opportunities), PRO-Net (Procurement Marketing and Access Network run by GSA), JECPO (Joint Electronic Commerce Program Office set up by DOD), and the Federal Electronic Commerce Program co-chaired by the DOD and the GSA. None is functional on a broad scale today, and integration initiatives are conflicting with each other. It is widely believed, even in some parts of the Congress, that government may not successfully implement internet reform on its own. There are three factors that impede the government's progress in this area: (1) the bureaucracy - people refuse to share information effectively; (2) government doesn't have the critical mass of technology talent. It has been drained away to industry; and (3) the billions of $ spent to date without meaningful success. The solution needs to come from the outside, driven by people with an insider's knowledge of government.
50. 50. Competition Who is the competition, present and future? Dont say, no one! What are your barriers to competition? (IP?) How will you defend profits and market share? How are you different? A features table is a great tool. Remember competitors are a great source of ideas and market research!
51. 51. One Dartmouth Entrepreneurial Journey Sarah Apgar T11 Director of New Stores, Warby Parker Founder & Chief Trainer, Fitfighter Training
52. 52. US ARMY 2003-2004 Mosul, Iraq ALPINE SUMMERTERM 2007-2009 Lenk, Switzerland PRINCETON 1998-2002 Princeton, NJ TUCK 2009-2011 Hanover, NH! US ARMY 2002-2007 CO Springs, CO WARBY & FITFIGHTER 2011-Now Huntington, NY My path less traveled. 1 2 3 5 6 4 52
53. 53. 53 PROBLEM
54. 54. 54 Eyeglasses should not cost $400+
55. 55. 55 PROBLEM
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58. 58. Source: NFPA Statistics: http://www.nfpa.org/itemDetail.asp?categoryID=955&itemID=23605 Heart Attack and Over- exertion 54% Falls and Trauma 18% Burns 8% Asphyxiation 10% Other 10% Fire ground deaths by cause 2013 Sprain, Strain 53% Wound, Cut, Fracture 18% Other 10% Smoke inhalation 7% Thermal Stress 7% Burns 6% Fire ground injuries by cause 2013 582015 FitfighterTraining Fire ground injuries are preventable
59. 59. 59 SOLUTION
60. 60. 60 Eyeglasses can be sold online
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62. 62. 62
63. 63. 63 SOLUTION
64. 64. 64 Targeted fitness can be packaged
65. 65. Physiology of 8 maneuver areas ZERO TO SIXTY 65 2015 FitfighterTraining HOSE HANDLING LADDERS FORCIBLE ENTRY GEAR OPERATIONS RESCUE VENTILATION SEARCH
66. 66. STEELHOSESTM mimic tools we already use Circuit Training prepares you for the fire ground + 66
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73. 73. 73 INNOVATION
74. 74. 74 http://www.nbcnews.com/watch/cnbc/inside-warby-parkers-innovative-strategy-396260931981
75. 75. 75Photo Credit: Smith & Brandon Online Blog
76. 76. 76Photo Credit: Parnters & Spade
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79. 79. 79 The retail industry is trending agile over time
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81. 81. 81 The retail industry is trending agile over time
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86. 86. Alchemy Works LA 2008 Henderson Dallas Atlanta Buckhead 121 Greene St NYC 819 Washington St NYC 1209 Lexington NYC 357 Hayes Street SF 1422 Abbott Kinney Blvd LA Imogene & Willie Nashville 837 Armitage Chicago 2014 Stores and Concept Shops Shop Good OK City 86 Warby Parker 2013-2014 Retail Expansion 83 Newbury Boston Standard Hollywood LA 2398 973 17352807 2016 2065 1025362 750 2012
87. 87. 87 Our first stores reflect both brand and local culture 1209 Lexington Ave ~ NYC 819 Washington ~ NYC83 Newbury St ~ Boston 121 Greene Street ~ NYC Standard Hollywood Hotel, Los Angeles
88. 88. 88 INNOVATION
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93. 93. My 6 Nuggets 93
94. 94. #1 What are you willing to risk for what matters to you? 94 My 6 Nuggets (a lot!)
95. 95. #2 What do you love to work with? 95 (physical things I can touch) My 6 Nuggets
96. 96. #3 Entrepreneurship is not a career: its a mindset 96 (it doesnt have to be your idea) My 6 Nuggets
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98. 98. #4 Whose dollars should you spend first? 98 (the answer is not always the same) My 6 Nuggets
99. 99. #5 What does failing really mean? 99 (cherish and learn from your failures) My 6 Nuggets
100. 100. #6 Optimize every precious minute with your Dartmouth resources 100 (drink a lot of cups of coffee!) My 6 Nuggets
101. 101. THANK YOU! sar.apgar@gmail.com 719 649 3642 www.warbyparker.com www.fitfightertraining.com @warbyparker @fitfightertrain @sarahapgar warbyparker fitfightertraining 101