The document discusses competition in business. It defines competition and discusses how to win by being the best in your category or creating a new category. Some ways to gain a competitive advantage include product or business model innovation through better experiences, enhanced benefits, price/value changes, new production/distribution/profit models, or defining a new market category based on differentiating value propositions. Successfully defining your own category establishes the competitive rules and allows you to extend the category.

1. Ideas,
Markets,
&
Compe11on
Enrique
Godreau
III
9Mile
Labs
April
15,
2014

2. Big
Ideas
• New
Big
Ideas
&
Small
ideas
take
similar
effort
• Might
as
well
go
for
the
big
idea!
– What
if
on
5/25/61
John
Kennedy
had
said,
“This
Na)on
should
commit
itself
to
achieving
the
goal,
before
this
decade
is
out,
of
delivering
a
pizza
in
New
Jersey
and
returning
the
delivery
person
safely
to
Manha?an”
– No
cordless
tools,
microchips,
joys)ck,
reflec)ve
insula)on,
smoke
detectors,
water
filters
or
satellite
TV

3. Big
Ideas
• They
don’t
need
to
be
hard
or
complicated
• They
don’t
need
to
be
en1rely
new
• They
don’t
need
to
require
lots
of
money
• They
can
help
you
build
a
big
business
But
How?
• Suspect
the
“same
old
way”
• Nurture
Uncommon
Sense
• Don’t
simply
be
crea1ve,
imagine!

4. Ideas are a dime a dozen
It’s all about execution

5. Market

6. Total
Addressable
Market
Serviceable
Addressable
Market
Market
Share
Market
Size

7. Total
Addressable
Market
Serviceable
Addressable
Market
Market
Share
Market
Size
People
with
2
feet
People
into
SnowSports
People
who
ski

8. 8
3M
SMB
retail
stores
$1K
/
store
$3B
per
year
$5K
/
store
upside
$18B Market
(not
including
na1onal
chains)
The
market
is
huge
x
+
(Real Example)

9. Key
is
defining
that
first
target
well
• Accessible,
well-­‐funded
target
customer
•
Compelling
reason
to
buy
•
Feasible
WHOLE
product
•
No
entrenched
compe11on
•
Good
follow-­‐on
segment
poten1al
•
Known
partners
and
allies
•
A
quick,
decisive
victory!
Source:
E.
Dooley/UW

11. Bigger
markets
provide
more
op1ons
SnowSports
Offering
Ski
Boots
Snowboard
Boots
Snowshoes
Telemark
Boots
Cross-­‐
country
Ski
Boots
MonoSki
Boots
• Larger
markets
provide
more
op1ons
to
succeed
• Assume
REV
goal
of
$50
million
• If
TAM=$50
million;
1
chance
• If
TAM=$1
billion;
20
chances
• Building
a
business
is
hard—
why
not
improve
the
odds?

12. ! Sweat Equity
! Credit Cards
! Home Equity Loan
! Friends & Family
! Government loan/grant programs
! Revenues/profits
! Incubators
! Angel Investors
! Venture Capitalists
! Commercial Bank Loans
! Mergers & Acquisitions (“M & A”)
! IPO
Sources of Money (in order)
Source:
A.
Dishlip/Summit
Imaging

13. ! Sweat Equity
! Credit Cards
! Home Equity Loan
! Friends & Family
! Government loan/grant programs
! Revenues/profits
! Incubators
! Angel Investors
! Venture Capitalists
! Commercial Bank Loans
! Mergers & Acquisitions (“M & A”)
! IPO
Sources of Money (in order)

14. • Coffee
has
been
brewed
for
500
years
• In
2004,
Keurig
took
pod
system
to
home
market
• The
pods
cost
10X
more
than
tradi1onal
methods
– Consumers
want
speed
and
convenience
• Results
– FY13
$4.4
billion
with
greater
than
40%
market
share

15. Compe11on
Enrique
Godreau
III
9Mile
Labs
March
31,
2014

16. Compe11on
com-­‐pe-­‐.-­‐.on
– process
of
trying
to
beat
others:
of
trying
to
win
or
do
beoer
than
others
– an
ac1vity
in
which
people
try
to
win
something
or
do
beoer
than
others
– opposi1on:
the
opposi1on
in
a
compe11ve
situa1on,
or
level
of
opposi1on

17. So
what?

22. Mobile
Adver1sing
Today
• $7.3
billion
in
FY13
– 5X
increase
in
revenues
since
2011
– FY17
Revenue
forecast
of
$27
billion
• #1
Google
got
$3.9
billion
– More
than
half
of
total
revenue!
– Earned
93%
of
all
US
Mobile
search
ad
$’s
• #2
Facebook
got
$965
million
– 13.2%
Market
Share
• #3
Pandora
got
$372
million
• Then
there’s
the
rest
…

24. How
do
you
win?
#1
Be
the
best
in
your
category
#2
Create
a
category
you
can
be
the
best
in

26. Breakthrough’s
• Product
Innova1on
– Beoer
Experience
– Benefit
Enhancement
– Price
and
Value
• Business
Model
Innova1on
– Produc1on
Model
– Distribu1on
Model
– Profit
Model

27. Market
Category
• Defined
by
value
proposi1ons
that
differen1ate
it
from
others
and
appeals
to
the
market
• Pick
Criteria
where
you
win
• Pick
Criteria
you
can
promote
• Pick
Criteria
that’s
new
and
worth
talking
about
• Define
the
category
so
you
can
extend
it
Building
your
own
category
establishes
the
Rules
of
Engagement
If
you
create
it,
you
own
it!
Categories
live
in
customers’
minds
Otherwise
you
are
in
a
brand
brawl
SalesForce
said
Cloud
Compu1ng
was
the
future
and
everyone
else
laggards
FedEx
said
overnight
shipping
rules
Tableau
said
numbers
are
hard,
visualize
your
data
App1o
says
manage
your
IT,
don’t
just
build
your
IT