Intro BusinessModels Merged

PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila

College of Engineering and Technology
Department of Chemical Engineering
CREATING COMPETITIVE
ADVANTAGE
Engr. Milagros R.
Abordo, O.C. ; Logronio, R.J.; Salazar, M.J.
Cabangon
OBJECTIVES
General Objective: To be able to create an effective
competitive market analysis for your company/business.
Specific Objectives:
• To identify what is competitive market analysis,
its importance and steps.
• To develop a competitive analysis template
based on competitive factors.
• To enumerate innovation models and apply it in
business or product.
CREATING COMPETITIVE ADVANTAGE
Abordo, O.C.; Logronio, R.J.; Salazar, M.J.
OUTLINE
Competitive Market Analysis
Competitive Analysis Template
Innovation Models

01
COMPETITIVE
MARKET ANALYSIS
COMPETITIVE MARKET ANALYSIS
INTRODUCTION
Competitive Market Analysis, or also called
Competitor Analysis is a way to identify
competitors and understand competitor's
strengths and weaknesses in relation to yours.
Assessing
Identifying Selecting which
competitor’s
company’s competitor to
strengths,
competitors attack or avoid
weaknesses, etc.

IMPORTANCE
Conducting a competitive market analysis is
important because it will help you:
Identify your business’s strength and weaknesses
Understand your market
Spot industry trends
Set benchmarks for future growth

IDENTIFYING COMPANY’S COMPETITORS
A competitor is a person, company, team or entity
that competes against another entity or person
DIRECT COMPETITORS INDIRECT COMPETITORS

sell a similar product or service sell a different product or the
to a similar target audience. same category but same target

A competitor is a person, company, team or entity
that competes against another entity or person
INTERNATIONAL LOCAL
RESTAURANTS DINERS
FUTURE COMPETITORS
REPLACEMENT POTENTIAL COMPETITORS
companies thatdirect,
COMPETITORS indirect, or replacement
can quickly
taketo
provides an alternative a market
the sharethat currently has no
in the
services that youmarket distribution
offer if they decide to in your market

To evaluate whether a business is your competitor,
start by asking:
What is the range of products and services they
offer?
Are their products or services aimed at satisfying
similar target markets?
Do they operate in the same geographic area?

DO I NEED TO ANALYZE ALL OF MY
COMPETITORS?
There are several markets where it is relatively easy to name
every competitor, so it’s recommended you do so if possible.
If there are a lot, use the 80/20 rule
80% of competition 20% of competitors

PARETO PRINCIPLE (80/20)
ASSESSING THE COMPETITOR
Before you begin seeking out your sources, keep
in mind the information you are looking for.
Competitor’s Competitor’s
objectives strategies
• Profitability • Strategic group
• Market share growth offers the strongest
• Technological and competition
Service leadership

Competitor’s Estimating
strengths and competitor’s
weaknesses reactions
• What can our • What will our
competitors do? competitors do?
• Benchmarking

WHERE DO I GATHER THE INFORMATION?
Secondary sources are information developed for a specific
purpose, but later made available for public access and
alternative uses.
Advertising
Sales Brochure
Articles (Online or Print)

WHERE DO I GATHER THE INFORMATION?
Secondary sources are information developed for a specific
purpose, but later made available for public access and
alternative uses.
Reference Books and Databases

SELECTING WHICH TO ATTACK OR AVOID
Management now must decide which competitors
to compete against most vigorously.
STRONG VS WEAK
COMPETITORS
Customer value analysis
determines the benefits
that customers’ value VS
and how they rate the
relative value of various
competitors’ offers
SELECTING WHICH TO ATTACK OR AVOID
CLOSE VS DISTANT
COMPETITORS
Most companies will
compete with close
competitors those VS
that resemble them
most rather than
distant competitors
GOOD VS BAD COMPETITORS
Good competitors play by the rules of the
industry while bad competitors break the
rules.

FINDING UNCONTESTED
MARKET SPACES
Blue Ocean Strategy -
rather than competing
head-to-head with
competitors, they try to
create products and
services which has no
direct competitors.
DESIGNING A COMPETITIVE INTELLIGENCE
SYSTEM
Competitive intelligence systems help decision
makers identify opportunities to improve the
company or organization’s strategic position.
Setting Up the
Collecting the Data
System
Disseminating and Evaluating and

Responding Analyzing

02
COMPETITIVE
ANALYSIS
TEMPLATE
COMPETITIVE ANALYSIS TEMPLATE
• It allows you to
review how your
company stacks
up against your
competitors.

COMPETITIVE FACTORS
1. COMPANY HIGHLIGHTS
COMPANY PROFILE
- Information such as when
the company was formed,
how many employees it has
etc.
KEY COMPETITIVE ADVANTAGE

- It highlights the basis of
profits.

2. MARKET INFORMATION
TARGET MARKET
- The aimed group of consumers
or companies.
MARKET SHARE
- The proportion of market
controlled by the company.
MARKETING STRATEGY
- The methods to promote and sell
products and services.
3. PRODUCT INFORMATION
PRODUCTS & SERVICES

- List of products and services.
PRICING
- List of the pricing of the
DISTRIBUTION CHANNELS
- Way of the business sells its

4. SWOT INFORMATION
STRENGTHS
- List of characteristics that give
advantages.
WEAKNESSES
- List of characteristics that are
disadvantageous.
OPPORTUNITIES
- List of external factors to
capitalize on and use to its
advantage.
4. SWOT INFORMATION
THREATS
- List of external factors
which might endanger the
business.
TRENDS
- Consideration of wider
trends.

03
INNOVATION MODELS
INNOVATION
Innovation means creative solutions to real
problems from study and experimentation can
actually be implemented.
- the act of introducing
something new
- it is the successful
implementation of new
ideas

TYPES OF INNOVATION

TYPES OF INNOVATION
1. Profit Model-
Innovation in profit
models can occur at
any point along the
value chain.
Examples: Subscription,
licensing models,
auctions

EXAMPLE
Innovation Models Existing: Tesla Project: Wayste to
Briquettes
1. Profit Model Pre-ordering None
2. Network
3. Structure
4. Process
5. Product Performance
6. Product System
7. Service
8. Channel
9. Brand
10. Customer Engagement
TYPES OF INNOVATION
2. Network- refer to our
current post-industrial era,
given that practically all of
the world's most valuable
enterprises receive a
significant percentage of
their value from the
strength of their networks.
Examples: Franchising,
online marketplaces, Social
networks

EXAMPLE
Briquettes
1. Profit Model Pre-ordering -
2. Network Vertical Integration Online Marketplace
3. Structure
4. Process
6. Product System
7. Service
8. Channel
9. Brand
TYPES OF INNOVATION
3. Structure- This covers
pretty much everything
from your organizational
design, competencies and
assets, incentives and
management structures, all
the way to knowledge
management.
Examples: Management
Certifications, Improving
organizational structure

EXAMPLE
Briquettes
3. Structure - -
4. Process
6. Product System
7. Service
8. Channel
9. Brand
TYPES OF INNOVATION
4. Process- Internal
processes are what an
organization uses to
develop and deliver their
products and services
Example: Process
automation

EXAMPLE
Briquettes
3. Structure - -
4. Process Software updates Using larger equipment
6. Product System
7. Service
8. Channel
9. Brand
TYPES OF INNOVATION
5. Product
Performance- This
simply entails
enhancing a product's
capacity to generate
value.
Example: Quality,
features

EXAMPLE
Briquettes
3. Structure - -
5. Product Performance Safety system Using additional recycled
materials
6. Product System
7. Service
8. Channel
9. Brand
TYPES OF INNOVATION
6. Product System- Product
system innovation refer to
improvement and
modifications you perform
to guarantee that your
products function together
with other complimentary
ones in a way that provides
greater value than the
product alone could.

EXAMPLE
Briquettes
3. Structure - -
materials
6. Product System Supercharger -
7. Service
8. Channel
9. Brand
TYPES OF INNOVATION
7. Service- Service
innovations ensure
and enhance a
product's or
service's utility and
value.
Example: Free trials,
Self-service systems
EXAMPLE
Briquettes
3. Structure - -
materials
7. Service 7-day trial -
8. Channel
9. Brand
TYPES OF INNOVATION
8. Channel- A channel
is simply a method you
use to connect your
offerings with your
customers and users.
Examples: Retail Stores,

Digital channel

EXAMPLE
Briquettes
3. Structure - -
materials
8. Channel Physical stores/Channels Digital channels
9. Brand
TYPES OF INNOVATION
9. Brand- is the customer's
perceived portrayal of a
business's offerings. Thus,
the objective of brand
innovations is essentially to
assist buyers and users in
recognizing, remembering,
and hopefully preferring a
certain brand over
competitors.

EXAMPLE
Briquettes
3. Structure - -
materials
9. Brand Ads/Promotion Logo creation, Online
promotion
10. Customer Engagement Abordo, O.C.; Logronio, R.J.; Salazar, M.J.
TYPES OF INNOVATION
10. Customer Engagement-
establish a connection with
your customers in different
areas, their interaction with
your company will be far
more gratifying, enjoyable,
and memorable.

Innovation Models
EXAMPLE
Existing: Tesla Project: Wayste to
Briquettes
3. Structure - -
materials
9. Brand Ads/Promotion Logo creation, Online
promotion
10. Customer Engagement Transparency Surveys
(vision/mission)
Thank you for
listening!
CET 0411-1: TECHNOPRENEURSHIP
VALUE PROPOSITION
Submitted by:
Dacasin, Bryan Edgar A.
De Leon, Jam Alysson O.
Molinas, Niño C. Jr.
Recaña, Paul Dexter John R.
BS-ChE 4-1
Submitted to:
Engr. Milagros Cabangon
1
Table of Contents
Objectives ..................................................................................................................... 3
What is a Value Proposition?........................................................................................ 4
What a value proposition should be? ......................................................................... 5
Best Practices for Value Propositions .......................................................................... 6
Common Mistakes in a Value Proposition.................................................................. 7
Elements of an effective Value Proposition ................................................................ 8
Value Proposition Canvas ............................................................................................ 9
Value Proposition Development ................................................................................ 15
Value Proposition Templates ..................................................................................... 16
References ................................................................................................................... 17
2
Objectives
General Objective:
To be able to create an effective value proposition to endorse
products and/or services.
Specific Objectives:
• To identify what is a value proposition and its elements.
• To determine what is a value proposition canvas and its
importance.
• To enumerate the steps on how to develop an effective value
proposition.
3
What is a Value Proposition?

A value proposition is a part of a company’s overall marketing strategy
which refers to the value that a company promises to deliver to customers
should they choose to buy their product. It provides a declaration of intent or a
statement that introduces a company's brand to consumers by telling them
what the company stands for, how it operates, and why it deserves their
business. According to McKinsey & Co. industry research paper (1988), “A value
proposition is a clear, simple statement of the benefits, both tangible and
intangible, that the company will provide, along with the approximate price it
will charge each customer segment for those benefits. “
A value proposition tells:
What does your company do?
Who are your target customers?
Why should they choose yours over your competitors?
4
What a value proposition should be?

A value proposition SHOULD:
• Make it easy for customers and prospects to understand and see how it
translates to their needs.
• Explains how you deliver a quantifiable benefit.
• Explains how your product or service solves a problem or improves a
situation.
• Tells prospects and customers why they should buy from you and not your
competitors.
A value proposition is not a slogan, tagline, or mission statement. Examples

below show the application of different companies.
Company name Tagline Value proposition
To bring inspiration and

Just do it innovation to every
athlete in the world
When it absolutely,
The World on Time positively has to be there
overnight
15 minutes or less can

Real Service. Real Savings save you 15% or more on
car insurance
5
Best Practices for Value Propositions

USE THE VOICE OF THE CUSTOMER
- Listen to why these people choose your product and why do they keep
on choosing your product over the others.
KEEP IT HYPE-FREE
- Refrain from using words like “best of the best, top of the line, and
groundbreaking, etc”
EVOLVE
- Your mission and values stay lock-tight, value propositions should evolve
with products, services, industries and customers’ needs.
SPREAD THE WORD
- It should be present in your advertisements most of the time if not always.
Other examples with their respective companies are shown below:
6
Common Mistakes in a Value Proposition

EXAGGERATING THE TRUTH
- Do not use “best of the best, top of the line, or No. 1” unless you have
evidence to back it up.
USING STILTED LANGUAGE
- Avoid using jargons. Keep the words simple that all customers can easily
understand.
COMMUNICATING WITHOUT CLARITY
- Value proposition needs to tell customers and prospects what you do and
why they should care.
RELYING SOLELY ON YOUR IDEAS
- A value proposition should also be tested in order to determine what

resonates best with the customers.
7
Elements of an effective Value Proposition

Target Market
This element involves identifying the

company's main target market, the
consumer group likely to provide the bulk
of the company’s sales. A business needs
to have a clear idea of who its ideal
customer is and shape its value proposition
to appeal to that customer. A company
must identify key demographics, such as
age, singles versus families, or income
levels, then design its value proposition to
speak to that target market.
Specific Value
The specific value the value which is

reasonable to what the company’s
products offer. A company must clearly
answer for its potential customers the
question of why they should choose the
company’s products over all other
available choices.
Customer Connection
This customer connection covers how a company meets the individual

needs or desires of its customers. This element is aimed at appealing to
customers' emotions and establishing a relationship that hopefully engenders
8
ongoing brand loyalty. This can be identified and tested by using surveys,
product samples, and social media advertisements.
Value Proposition Canvas

The value proposition canvas is a tool which can help ensure that a
product or service is positioned around what the customer values and needs. It
is a toll for marketing experts, product owners, and value creators. The value
proposition canvas is a framework that helps designers ensure that there is a fit
between the product-service idea and the market.
A value proposition canvas is a visual tool that helps you position your
business’s product or service around your customers’ needs. The goal of the
value proposition canvas is to identify how your business provides value within
the market.
The value proposition canvas was initially developed by Dr. Alexander

Osterwalder as a framework to ensure that there is a fit between the product
and market. It is a detailed look at the relationship between two parts of the
Osterwalder’s broader Business Model Canvas: customer profile and value
proposition.
Figure 1. Value proposition canvas
Customer Profile
The customer profile makes up the first half of the value proposition
canvas. A customer profile should be created for each customer segment, as
9
each segment has distinct gains, pains and jobs. It represents your target buyer
through their wants and needs.
• Gains – also referred to as “expectations”; the benefits which the

customer expects and needs, what would delight customers and the
things which may increase likelihood of adopting a value proposition.
• Pains – the negative experiences, emotions and risks that the customer
experiences in the process of getting the job done.
• Customer jobs – the functional, social and emotional tasks customers are
trying to perform, problems they are trying to solve and needs they wish to
satisfy.
Value Map
A value map describes what the business offers to the customer through
three specific sectors.
• Gain creators – how the product or service creates customer gains and
how it offers added value to the customer. These are the features your
products or services have that make the customer happy.
• Pain relievers – a description of exactly how the product or service
alleviates customer pains. This section will define exactly how your business
will help them overcome those pain points.
• Products and services – the products and services which create gain and
relieve pain, and which underpin the creation of value for the customer.
Once the value proposition canvas is completed, the next step will be to
determine how your value proposition fits within the customer profile. To do this,
use a ranking process that prioritizes products and services based on how well
they address the customer profile.
Importance of Value Proposition Canvas
• Precisely define your customer profiles

The value proposition canvas identifies your customer's major Jobs-
to-be-done, the pains they face when trying to accomplish their Jobs-to-
be-done and the gains they perceive by getting their jobs done.
10
• Visualize the value you create

By using the value proposition canvas, a business can define the
most important components of their offering (products or services), how
you relieve pain and create gains for your customers.
• Achieve Product-Market fit
Through the use of value proposition canvas, a business can adjust
their Value Proposition based on the insights you gained from customer
evidence and achieve Product-Market fit.
Fit or Misfit
The value proposition canvas aims at achieving a fit between what the
customer wants and what your product/service can offer to overcome pains
and generate gains. In practice, the customer profile may have tons of jobs,
pains & gains, but the value map outlines which of them you focus on. The more
items from the right side have matches on the left one, the higher the probability
that the product will hit home.
Value Map Nissan Customer Profile
Products & services: Jobs:

-Leaf -personal mobility
-regular long-distance trips
-be different from others
Pain relievers: Pains:

-best-selling -insufficient number of
-potential savings from tax
credits MISFIT charging points
-lack of luggage space
-slow charging
Gain creators: Gains:

-advanced tech features -durable battery lifetime
-numerous awards -brand recognition
-interior ergonomics
11
The customer profile is made of requirements by a particular customer

segment, which sets high expectations for the electric car they need: -a desire
to be different from others cannot correlate with the fact that Nissan Leaf is a
frequent-to-meet car on the roads; – such pains as slow charging and the
insufficient number of charging points are not covered by potential savings or
the title of the best-selling electric car. – advanced tech features do not extend
the battery life, but numerous awards contributed to making the brand
recognizable. The verdict is misfit.
Value Map Nissan Customer Profile
Products & services: Jobs:

-Model S -personal mobility
-Model X -regular long-distance trips
-Model 3 -be different from others
Pain relievers: Pains:

-growing network of -insufficient number of
charging pts.
FIT
charging points
-developed interior -lack of luggage space
ergonomics -slow charging
-75 mins to charge 100%
w/ supercharging stations
Gain creators: Gains:

-8 years battery warranty -durable battery lifetime
-reputable brand -brand recognition
-self-driving option -interior ergonomics
The same requirements find more fits with this product map. Driving one of
the Tesla models, you will differ from other e-vehicle drivers. Besides, huge
investments in technological development mean a wide range of different gain
creators as well. The verdict is fit.
12
Filling in a Value Proposition Canvas Example

Customer: Ethical fashion customer is Hannah, a 28-year-old photographer.
Hannah is shopping for new clothes. She needs items that can be worn at
work – so they have to look professional. She’s sick of hand-washing clothes, but
also doesn’t want to spend too much on dry cleaning. She hates the idea of
“Fast Fashion,” having watched a documentary on the environmental impacts
of manufacturing. She wants her clothes to make her feel confident, that they
flatter her figure but aren’t too revealing. Her favorite colors are pastels, and she
has an aversion to details like beads and embellishment that jingle when she
walks.
Customer Profile – Customer jobs
Hannah loves shopping online, without pushy retail assistants, teenagers

and loud music. She wants to be able to easily return items that don’t fit, and
hates paying for shipping to Australia. Versatility is really valuable, because it
means she can wear her favorite items in a range of outfits. She won’t overpay
for a designer label, and has an eye for quality. She wants to feel that what she
buys can make a difference in the world, and loves having people ask her
about where she bought her clothes. Her taste is well regarded amongst her
friends, and she’d like to keep that reputation.
Customer Profile – Gains and Pains
13
For our ethical fashion company, we are offering:

✓ 100% cotton dresses
✓ Jeans with 2% elastane
✓ Free shipping with orders over $100
✓ Track Your Impact, allowing you to see where your clothes were made
✓ Free returns within 14 days
✓ Member specials and VIP discounts
Value Map – Product and Service Features
After identifying the features, so what? Why do these features mean

anything? Frame them as being valuable to our customer, either as Gain
Creators that offer them something new, or as Pain Relievers that remove a
current frustration.
Value Map – Gain creators and Pain relievers
So now we have filled in both parts of the Canvas – what does it tell us?
Firstly, we can see a good alignment with our customer – there is obvious
overlap between what they want and what we sell. Secondly, there is room for
improvement – because Hannah may have questions and concerns that were
14
not answered such as how our product quality stacks up to other brands. Lastly,
there needs to be some more validation of critical assumptions like how much is
Hannah willing to pay.
Try it for yourself: fill in a canvas and see where there are gaps. Use
uncertainty as fuel – run more experiments, ask more questions, and try out new
ideas. By understanding your customers’ preferences, biases and thoughts, you
will find new ways to delight them and grow your business.
Value Proposition Development

Writing a Value Proposition can be divided into multiple steps. These are:
1. Identifying your customer’s main problem
This primarily includes brainstorming and research to identify. From the

canvas, this can be summarized by using the customer profile. Most companies
would provide different customer profiles for different types of customers. But
companies would like to retain their ideal customers to keep their sales going.
Information gap regarding your product can be filled in by Customer service
reps, marketing specialists, and salespeople.
2. Identify all the benefits your product offers
This step can be as simple as listing out every product you sell and
describing its primary benefit. The benefit should be concise and focused on a
single customer need, followed by another sentence that explains why this
benefit matters to the customer. This can be determined using the value map in
the canvas. This primarily includes the products’ uniqueness and expected
price.
3. Connect this value to your buyer's problem
15
Next, pair the buyer’s problem to the elements that make your product or
service valuable. “Do they align?” If so, you’re ready to refine your value
proposition to differentiate your offerings from the competition.
4. Differentiate yourself as the preferred provider of this value
In this part, customers must see a unique feature that only your product
can provide. This must answer the questions “Is there a specific customer service
offering your business provides that others don’t?” and “Do you offer any
additional services that other companies charge for?”
5. Testing and refining your value propositions
To have an effective value proposition, various testing and refining must

be done. Consultation within the team, experts, and higher ups are necessary
whether you’ve successfully identified your customers’ most important problems
and whether you have a compelling solution that they value and will help
deliver their desired outcomes. Once approved, the value proposition is ready
for execution.
Value Proposition Templates

• Steve Blank Method
Instead of focusing on the features themselves, Blank saw the need to

emphasize the benefits derived from the features in a simple sentence.
“We help ____ do _____ by doing _____”
• Geoff Moore Method
Moore provides a template that’s more specific in identifying the industry

categories alongside the benefits customer value.
16
“For [target customer] who [needs or wants X], our [product/service] is

[category of industry] that [benefits]”
• Harvard Business School Method
According to HBS a value proposition is executed best when it answers

the following questions:
What is my brand offering?
What job does the customer hire my brand to do?
What companies and products compete with my brand to do this job for the
customer?
What sets my brand apart from competitors?
References
Bauer, J. (2012, April 16). Value Proposition. Retrieved from Slideshare:

https://www.slideshare.net/jeremi7bauer/value-proposition-12560816
Coleman, B. (2018, June). How to Write a Great Value Proposition [5 Top
Examples + Template]. Retrieved from Hubspot:
https://blog.hubspot.com/marketing/write-value-proposition
Kirkwood, S. (2008, October 8). Value Proposition. Retrieved from Slideshare:
https://www.slideshare.net/stankirkwood/value-proposition-presentation
Maverick, J. (2021, June 28). What Are the Elements of an Effective Value
Proposition? Retrieved from Investopedia:
https://www.investopedia.com/ask/answers/032715/what-are-elements-
effective-value-proposition.asp#:~:text=Specific%20Value,-
The%20second%20key&text=A%20company%20must%20clearly%20answer
,saving%20is%20another%20potential%20value.
17

Orlando M. Malaca, PhD.

Professor

In the book entitled Entrepreneurs Are Made Not Born ,

Author Lloyd Shefsky defined entrepreneur as:
entre means to enter
pre means before
neur means nerve center
Shefsky’s practical view on the term entrepreneur

leads to a definition of the word as someone who
enters a business – any business – in time to
form or change substantially that business
nerve center.

What is Entrepreneurship?
It is the process of creating something new
with value by devoting the necessary time and
effort, assuming the accompanying financial,
psychic, and social risks, and receiving the
resulting rewards of monetary and personal
satisfaction and independence.
Entrepreneurship is the process of discovering

new ways of combining resources.

Who is Entrepreneur?
An entrepreneur is a person who starts and
or operates a business.
He/she is creative and innovative.
He/she is a person who starts something
new.
He/she may be male or female, young or old,
professional, college graduate or school
dropout, comes from A, B, C, D or E economics
group.

Who is Entrepreneur?
 He is an owner-manager and willing to take risks
of a business or enterprise.
Usually he is someone not willing to work for

others. Instead, he wants others to work for him.
Usually, his kind of business is single

proprietorship because he does every thing from
production to selling.
An entrepreneur is an agent of change.

List of Famous Filipino

Entrepreneurs and their Brands
Manny Villar – from fish vending to
enterpreneur and politics
Lucio Tan – the tobacco king
Sandy “Andok” Javier – the litson king
Brother Mike – a religious enterpreneur
Socorro “Nanay” Ramos – the woman
enterpreneur
Henry Sy – the king of shoes

Technology + Entrepreneurship
= Technopreneurship
the
The application is the process of
process of
of scientific
creating creating
knowledge for
practical something something
new with
purposes, innovative or
value.
especially in
new applying
industry:
"computer the scientific
technology"; knowledge for
"recycling
practical
technologies".
purpose

Who is Technopreneur?
Are entrepreneurs who are into the
core businesses involving technology-
based industries.
They make use of technology to

come out with new or innovative
products through a process of
commercialization.

Who is Technopreneur?
The businesses are generally marked with
high growth potential and high leverage of
knowledge and intellectual property.
Potentialtechnopreneurs must be
equipped with both technical and business
skills.
Example: Job Steve of Apple Inc.
William Henry Gates of Microsaft

Technopreneur
A technoprenuer is an entrepreneur who is technology
savvy, creative, innovative, dynamic, dares to be
different and take the unexplored path, and very
passionate about their work. They take challenges and
strive to lead their life with greater success. They don’t
fear to fail. They take failure as a learning experience, a
stimulator to look things differently and stride for next
challenge. Technoprenuers continuously go through an
organic process of continual improvement and always
try to redefine the dynamic digital economy.
Source: http://www.rajeshshakya.com/what-is-technopreneurship.htm

Jerry Yang. Co-founder of Yahoo!
Kevin Rose. Founder of Digg.com. Dropped out of college during

his second year.
Larry Ellison. Billionaire co-founder of Oracle software

company. Dropped out of two different colleges.
Michael Dell. Billionaire founder of Dell Computers, which

started out of his college dorm room. Dropped out of college.
Shawn Fanning. Developer of Napster. Dropped out of college

at the age of 19.

Steve Wozniak. Co-founder of Apple, billionaire.
Steve Jobs. After attending one semester of college, Steve Jobs

worked for Atari before co-founding Apple Computers. Now without
the “Computers” in their name, Apple includes innovative products
such as the iPod, iTunes, and most recently the iPhone. Steve Jobs
was also the CEO and co-founder of Pixar before it merged with Walt
Disney
Bill Gates. Ranked as the world’s richest person from 1995-2006, Bill
Gates was a college drop out. He started the largest computer
software company, Microsoft Corporation. Gates and his wife are
philanthropists, starting The Bill & Melinda Gates Foundation with a
focus on global health and learning.
Theodore Waitt. Billionaire founder of Gateway Computers. Dropped

out of college to start Gateway – one semester before graduating.
Tom Anderson. Co-founder and “friend” of MySpace.

Dropped out of high school.

Assignment:
Think and create an innovative design of a certain product or service.
Submission: Next meeting

CET 0411-2 - TECHNOPRENEURSHIP 101
BUSINESS MODELS
Presented by:
Candelaria, Vince Rafael L.
Matito, Samantha
Valenzuela, Jamie T.
TOPIC OUTLINE
Definition of a business model
Importance of a business model
Types of Business Models
Choosing the right business model
Business Model Canvas
Key Components of a Business Model
The Business Model Triangle
General Objective
• To come up with a profitable business model plan for the
chosen business
Specific Objectives
• To identify the different types of business model
• To enumerate the nine building blocks of business model

canvas
• To specify the components needed in developing an

effective business model
BUSINESS MODEL
A business model is the

plan your business has for
making money. It’s an
explanation of how you
deliver value to your
customers at an
appropriate cost.
BUSINESS MODEL
What product or service a
company will sell.
How it intends to market that

product or service.
What kind of expenses it will
face.
How it expects to turn a
profit.
Importance of a Business Model
Gives a continuous extension

of feasibility analysis
Concentrates on all the

elements of a business
coming together
Demonstrates the core logic

of a business
1. Subscription Business Model
• the customer pays a recurring
payment on a monthly basis.
Ex: Netflix, hulu, Spotify
2. Bundling Model
• involves companies selling

two or more products
together as a single unit
• Ex: Fast Food, Youtube Premium
3. Freemium Model
• software company hosts and
provides a proprietary tool for
their users to freely access.
• Ex: Spotify, LinkedIn, Skype
4. Razor Blade Model
• designed to encourage price
of consumption over time.
Ex: Xbox, Printer and ink
5. Product to service model
• allow customers to purchase a
result rather than the equipment
that delivers that result.
• Ex: Grab, Uber, Zipcar
6. Marketplace
• allow sellers to list items for sale
and provide customers with easy
tools for connecting to sellers.
• Ex: Shoppee, Lazada, Ebay
7. Crowdsourcing model
• involves receiving opinions,
information, or work from many
different people using the internet.
Ex: Wikipedia, Youtube, IMDB
8. One-for-one model
• a company donates one item to a
charitable cause for every item
that is purchased.
• Ex: TOMS, SoapBox, Smile Squared
9. Franchise model
• selling access to a national brand
and support services that help the
new franchise owner running.
Ex: Jollibee, McDonald’s, Starbucks
10. Distribution model

• responsible for taking
manufactured goods to the
market.
• Ex: Avent, ABC Supply and Co.
11. Manufacturer model
• when a manufacturer converts raw
materials into a product.
• Ex: Samsung, LG, Intel
12. Retailer model

• businesses purchase goods from
distributors and then sell them to
customers
• Ex: SM, Target, Walmart
CHOOSING THE BEST
BUSINESS MODEL
Presented by: Vince Candelaria

How to choose the right business model
Consider your customers’ needs

Consider how your customers buy

Consider the market potential and competition

Consider multiple revenue streams

BUSINESS MODEL
CANVAS
CUSTOMER SEGMENTS
• For whom do you create
value?
• Who are your most important
customer or consumer
groups?
Customer segments are groups of

target prospects with similar needs
and characteristics. They are
identified based on factors such as
demographics, geographics,
behavioral patterns, etc.
Mass Market
Focuses on the general population or
a large group of people with similar
needs.
Niche Market
The focus is centered on a specific
group of people with unique needs
and traits.
Segmented Market
There could be different groups
within the main customer segment.
Multi-sided Market
This includes interdependent
customer segments.
Diversified Market
It includes customers with very
different needs.
VALUE CUSTOMER
KEY PARTNERS KEY ACTIVITIES CUSTOMER
PROPOSITION RELATIONSHIPS SEGMENTS
• Marketing • Seamless • Lovemark

•Record •Hardware music • Mass market
companies design experience
•People •Quality brand
•Content &
agreements
KEY RESOURCES CHANNELS
•Apple brand
•iPad hardware •Retail stores
•iTunes •Apple stores
software •Apple.com
•Content & •iTunes store
agreements
•People •iTunes store

•Manufacturing •Large hardware revenues
COST REVENUE •Some music revenues
STRUCTURE •Marketing/sales STREAMS
CUSTOMER RELATIONSHIPS
• It describes the types of
relationships a company
establishes with specific
customer segments.
• Maintaining relationships
acquire and retain
customers and boost sales.
• Personal assistance: you
interact with the customer in
person or by email, through
phone call or other means.
• Dedicated personal assistance:

you assign a dedicated
customer representative to an
individual customer.
• Self-service: maintain no relationship with the
customer but provides what the customer needs to
help themselves.
• Communities: these include
online communities where
customers can help each other
solve their own problems
regarding the product or
service.
• Co-creation: here the company

allows the customer to get
involved in the designing or
development of the product.
VALUE CUSTOMER

•Content &
agreements
•Apple brand
agreements

CHANNELS
It describes how the company

will communicate with and
reach out to its customers.
Channels are the touchpoints

that let your customers
connect with your company.
Two types of
channels
Owned channels:
• company website,
social media sites, in-
house sales, etc.
Partner channels:
• partner-owned
websites, wholesale
distribution, retail, etc.
VALUE CUSTOMER

•Content &
agreements
•Apple brand
agreements

REVENUE STREAMS
• Sources from which a company generates money
by selling their product or service to the
customers.
A revenue stream can belong to
one of the following revenue
models,
• Transaction-based revenue:
made from customers who make
a one-time payment
• Recurring revenue:
• made from ongoing payments
for continuing services or post-
sale services
• Asset sales: by selling the rights
of ownership for a product to a
buyer
• Usage fee: by charging the

customer for the use of its
product or service
• Subscription fee: by
charging the customer for
using its product regularly
and consistently
• Licensing: customer pays to

get permission to use the
company’s intellectual
property
• Lending/ leasing/ renting:
the customer pays to get
exclusive rights to use an
asset for a fixed period
• Advertising: by charging
the customer to advertise a
product, service or brand
using company platforms
VALUE CUSTOMER

•Content &
agreements
•Apple brand
agreements

KEY ACTIVITIES
• Activities that need to be completed for the
business to perform and operate successfully
Production Problem Solving Platform

VALUE CUSTOMER

•Content &
agreements
•Apple brand
agreements

KEY RESOURCES
• These resources enable the company to provide
their products or services to their customers.
Human Financial Intellectual Physical

VALUE CUSTOMER

•Content &
agreements
•Apple brand
agreements

KEY PARTNERS
• The external companies or suppliers that will help
the company carry out its key activities.
Strategic alliance: partnership
between non-competitors
Coopetition: strategic
partnership between partners
Joint ventures: partners
developing a new business
Buyer-supplier
relationships: ensure reliable
supplies
VALUE CUSTOMER

•Content &
agreements
•Apple brand
agreements

COST STRUCTURE
• It describes all costs incurred

to operate a business model.
• It describes the most important

costs incurred while operating
under a particular business
model.
COST STRUCTURE
Cost-driven
focuses on minimizing costs
whenever possible
Value-driven:
focuses on providing maximum
value to the customer
VALUE CUSTOMER

•Content &
agreements
•Apple brand
agreements

VALUE PROPOSITION
• A company creates value, or
benefits, for customers by
solving a problem or satisfying a
need.
• It is the reason that customers

choose one option over another
when deciding what to buy.
VALUE CUSTOMER

•Content &
agreements
•Apple brand
agreements

KEY COMPONENTS OF BUSINESS MODEL
Everything it takes to
make something:
Design, raw materials,

manufacturing, and
labor
Everything it takes to
sell that thing:
Marketing, distribution,
delivering a service,
and processing the
sale
How and what the

customer pays:
Pricing strategy,
payment methods,
and payment timing
BUSINESS MODEL TRIANGLE
A feature that makes
your product attractive
to customers
It explains the different

mechanisms of
income generation
and its sources.
Describes the full range of

activities needed to create
a product or service.
Brief background of Netflix
Marc Randolph and Reed

Hastings founded Netflix
in Scotts Valley, California.
When they heard about DVDs, they

tested the concept of selling or
renting DVDs by mail, by mailing a
compact disc to Hastings's house
in Santa Cruz.
What kind of product or
service will the company
sell?
• Netflix sells an online

streaming service
• They allow customers to

watch TV shows and
movies without the
interruption of ads
Who are the target
customers?
• Netflix broadens its

content offering in order
to appeal to children,
teens, and adults.
Why is the product or
service profitable?
• Netflix has a subscription

type of business model.
• Profit comes from their

subscription sales or
licensing Netflix owned
contents
Who will be the key
partners?
• Relationships that
your business has
with other businesses
to ensure your
business model will
be successful
What are the key
activities?
• Any activities that

your business is
engaged in for the
primary purpose of
making a profit.
What will be the key
resources?
• Building block
describing the most
important assets
needed to make a
business model work
How is the value
proposition created?
• Explain the value of

your products and
services.
• Describe the benefits

your customers will
experience when
they choose your
product or service
Customer
Relationships and
Customer Segments
• Describes the types

of relationships a
company establishes
with specific
Customer Segments
Channels of
Netflix
• These are customer

touch points that
are important in
customer
experience.
Cost Structure of
Netflix
• The types and

relative proportions
of fixed and variable
costs that a business
incurs.
Revenue Streams of
Netflix
• Various sources from

which a business
earns money from
the sale of goods or
the provision of
services
CREATING COMPETITIVE
ADVANTAGE
EMPLEO, ELLIREHD
MALLARI, REINDEL
MERTO, JERICHO
GENERAL OBJECTIVES
To analyze competitors, discuss

strategies, and take advantage
of the market to create a
competitive advantage.
SPECIFIC OBJECTIVES
• To determine and understand competitors as
well as customers through competitor
analysis.
• To determine and apply the Basic Competitive
Strategies and Value Disciplines for delivering
superior customer value to a business venture
• To formulate an offensive, defensive, and passive

marketing strategy with respect to the competitive
position of the company
PRESENTATION OUTLINE
COMPETITOR ANALYSIS
DETERMINATION OF APPROACHES TO
STRATEGY PLANNING
IDENTIFYING BASIC COMPETITIVE
STRATEGIES
APPLYING COMPETITIVE STRATEGIES
AND VALUE DISCIPLINES TO A BUSINESS
TAKING ADVANTAGE OF COMPETITIVE
POSITIONING
COMPETITOR
ANALYSIS
Why does a
business study/
analyze its
competitors?
Competitive advantage
refers to factors that allow
a company to produce
goods or services better or
more cheaply than its
rivals.
an advantage over
competitors gained by
offering consumers greater
value than competitors do.
COMPETITIVE ADVANTAGE
These factors allow the productive entity to generate
more sales or superior margins compared to its
market rivals.
STEPS IN ANALYZING
COMPETITORS
IDENTIFY ASSESS SELECT
assessing
identifying the competitors’
selecting which
company’s objectives,
competitors to
competitors strategies,
attack or avoid.
strengths, and
weaknesses
WHAT IS A
COMPETITOR?
IDENTIFYING COMPETITOR
COMPETITOR
Other companies
offering similar products
and services to the same
customers at similar
prices.
TYPES OF COMPETITOR
Direct competitors
are competitors who are
directly vying for your
customers.
Potential competitors
target the same kinds of
customers but aren’t
selling in your market area
TYPES OF COMPETITOR
Indirect competitors
are businesses that are in
the same category, but
they sell different products
and services
Replacement competitors
those who provide an
alternative to the
product/services that you
INDUSTRY POINT OF VIEW
This refers to competitors within the same
industry.
Competitor myopia
It refers to a
company focusing on
what it considers to
be its direct
competition and not
being aware of
indirect or new
competitors
Competitor myopia
A company is more
likely to be “buried”
by its
latent/substitute/indi-
rect competitors than
its current ones.
Competitor myopia
MARKET POINT OF VIEW
The company defines competitors as
companies that are trying to satisfy the same
customer need or build relationships with the
same customer group.
ASSESSING COMPETITORS
A. DETERMINING COMPETITORS’
OBJECTIVES
B. IDENTIFYING COMPETITORS’
STRATEGIES
C. IDENTIFYING COMPETITORS’
STRENGTHS AND WEAKNESSES
A.DETERMINING COMPETITORS’
OBJECTIVES
To find a gap in the
market your company
will occupy.
It will help the firm to

recognize how you can
enhance your own
business strategy.
B. IDENTIFYING COMPETITORS’ STRATEGIES
By knowing the strategy
of the competitors, the
firm would be able to come
up with a better /
counterstrategy.
The more that one firm’s strategy resembles
another firm’s strategy, the more the two firms
compete.
C. ASSESSING COMPETITORS’ STRENGTHS AND
WEAKNESSES
Knowing the competitors’ strengths and
weaknesses will help the company to come up
with the idea that will make your product/service.
STRATEGIC GROUP
a group of firms in an industry following the
same or a similar strategy in each target
market.
SELECTING COMPETITORS
WHY DO WE HAVE TO SELECT?
The company can focus on a few of several classes

of competitors. Most companies prefer to
compete against weak competitors.
EXAMPLE
SHOMETER
A water metering service for the community. A
prepaid water system that is similar to the
prepaid electricity service of Meralco.
EXAMPLE
COMPETITOR/S
A prepaid water system where concessionaires

can monitor the consumed water and the exact
amount of consumption of water will be noted
and implemented.
EXAMPLE
COMPETITOR/S
- 25 years in service
- Started as a community water system of Villa
Sta. Barbara in Sta. Barbara Pangasinan, and
expanded to Bataan
EXAMPLE
COMPETITOR’S SERVICE FEATURES
- Prepaid Load water offers P 300 for 1 month
or P600 to P1000 for 2 months.
- One time installation fee of P 3,650.
- Location Pangasinan & Bataan

EXAMPLE
STRENGTH WEAKNESSES
- Well-established - Not located at Metro
company. Manila
- The company gained - They do not have
the trust of many installment payment
households. for the installation fee.
- They conduct - No mobile application
orientation for their developed for this
customers. service.
- It only measures the
amount of water and
not the quality.
COMPETITIVE STRATEGIES
COMPETITOR ANALYSIS
• Identification of Major Competitors
• Evaluation of Major Competitors
A company must determine:
Approach to the strategy-planning process
Competitive Positioning strategies
Value Disciplines for delivering superior customer value

APPROACHES TO MARKETING STRATEGY
These approaches explain clearly the
mechanism and concept of marketing and how
the company approach the strategy planning
process.
Every company must determine makes the most of their:
Position in industry Opportunities

Objectives Resources
1. Entrepreneurial Marketing
Refers to the proactive
identification and exploitation
of opportunities for acquiring
and retaining profitable
customers through innovative
approaches to risk
management, resource
leveraging, and value
creation.
1. Entrepreneurial Marketing
EXAMPLE
Jim Koch first marketed his

Samuel Adams beer by carrying
bottles in a suitcase from bar to
bar, telling his story, educating
consumers, getting people to
taste the beer, and persuading
bartenders to carry it.
2. Formulated Marketing
• Refers to the development of
formal marketing strategies.
• This involves considering advertising,

employing dozens of salespeople,
and carrying on sophisticated
marketing research that relies on self
analysis and consumer monitoring.
2. Formulated Marketing
EXAMPLE
Boston Beer now employs a large

sales force and has a marketing
department that carries out
market research and plans
strategy.
3. Intrapreneurial Marketing
• Refers to building more
marketing initiative
Intrapreneurship
- Refers to a system that allows an
employee to act like an
entrepreneur within a company or
other organization.
3. Intrapreneurial Marketing
EXAMPLE
Google – Time Off Program Facebook – “Hackathons”
IBM Customer Interaction


BASIC COMPETITIVE
STRATEGIES
by MICHAEL PORTER
ways of gaining competitive advantage

, developing the "edge" that gets you the sale
and takes it away from your competitors.
BASIC COMPETITIVE STRATEGIES
1. Cost leadership strategy
• a competitive strategy
wherein the business
works hard to achieve
the lowest production
and distribution costs
and can therefore ask
the lowest prices.
EXAMPLE
• Coca cola can operate its market
power by either decreasing its price
to eliminate the new commers.
• The objective of Coca Cola is to

target every consumer of the
country, therefore Coca Cola set its
prices at a level which no competitor
can offer to its consumers.
APPLICATION TO
TECHNOPRENEURSHIP PROJECT:
• Depending on the price of the competitor, the company can set a lower
price than its competitors such as installation fees, offer better prepaid
load water prices, but of course, consider profitability.
2. Differentiation strategy
• a strategy wherein the
company concentrates on
creating a highly
differentiated product line
and marketing program so
that it comes across as the
class leader in the industry.
2. Differentiation Strategy
EXAMPLE
Coca cola comprised beverage portfolio
of 3300 products. Beverages are divided
into diet category, 100% fruit juices, fruit
drinks, water, energy drinks, tea and
coffee etc.
Coca cola’s Unique strategy of

personalized bottles
APPLICATION TO
• The company can develop a new feature in topping up for the prepaid
load water system. For example, a smart application for mobile can be
developed for customer convenience, easy of access, and reliable water
consumption tracking system.
APPLICATION TO
3. Focus Strategy
• a strategy where the

company focuses its
effort on serving a few
market segments well
rather than going after
the whole market.
3. Focus Strategy
EXAMPLE
Coca Cola doesn’t target a specific
segment but adapts its marketing
strategy by developing new products.
Cola is popular worldwide & is liked by

people of all age group while the diet
coke targets niche segment for people
who are more health conscious.
3. Focus strategy
APPLICATION TO
• The company will target specifically

Manila residents in joint partnership
with Maynilad and Manila Water, then
expand later on to the whole
Philippines.

VALUE DISCIPLINES
a statement of strategic focus
and provides a context for a
company to set its corporate
vision and objectives, to target
its most profitable customers,
and to focus and align its
activities
VALUE DISCIPLINES
1. Operational Excellence
Defined by a relentless focus on
providing customers with reliable
products or services at competitive
prices and delivered with minimal
difficulty or inconvenience.
VALUE DISCIPLINES
EXAMPLE
Air Arabia recorded the highest
indicators for operational reliability
and aircraft utilization reflecting
the carrier’s extremely high
maintenance and technical
standards.
Considered as Middle east and
North Africa’s leading low-cost
carrier.
VALUE DISCIPLINES
APPLICATION TO
• MAINTENANCE, TECHNICAL AND
SERVICE RELIABILITY, AND ASSURANCE
OF THE ACCURACY OF THE METERING
SERVICE AND GUARANTEED SAFETY OF
THE QUALITY OF WATER WILL
GUARANTEE AN EXCELLENT
OPERATIONAL EXCELLENCE FOR THE
COMPANY.
VALUE DISCIPLINES
2. Customer Intimacy
• Means targeting markets precisely
and tailoring its products to match
the needs of their customers.
• This involves satisfying unique
customer needs through a close
relationship with and intimate
knowledge of the customer.
• This involves building long-term
customer loyalty and to capture
customer lifetime value.
VALUE DISCIPLINES
• Nordstrom is leading its market of
customer service and getting the
customer precisely the product or
information he or she wants.
VALUE DISCIPLINES
APPLICATION TO
• WE CAN OFFER SPECIAL DISCOUNTS
FOR CUSTOMERS WHO WILL OFFER
YEARLY SUBSCRIPTION AND
CONSISTENT RESULTS OF METERING
SERVICE AND GOOD QUALITY OF
WATER WILL HELP THE COMPANY IN
BUILDING TRUST AND LOYALTY TO
CONSUMERS.
VALUE DISCIPLINES
3. Product leadership
Means offering customers

leading-edge products and
services that consistently
enhance the customer’s use or
application of the product.
VALUE DISCIPLINES
3. Product leadership
A Tesla automobile—any model—
doesn’t come cheap, and you’ll have to
wait a while to get one. But it’s the
ultimate in cutting-edge electric vehicles.
Within only days of unveiling the more

affordable yet still incredibly stylish
$35,000 Tesla Model 3, Tesla was
swamped with 400,000 reservation
deposits of $1,000.

Taking Advantage of
Competitive Positioning
• Marketing strategy that refers to how a

marketing team can differentiate a company
from its competitors
• Describes the market share of a company
• Directly correlated to the company’s
reputation, resources, quality of product
and profitability
1 Market Leader
• The leader of the
market where the
brand exists.
• Makes up a majority
of the market share
• Employs defensive
strategies to create
advantage.
1 Market Leader
• High Quality and

Quantity
• Focused on innovation
and securing the
market by outdoing
the competition
Market
Telecommunications
Leaders Power Distribution
in the
Philippines
Retail
Real Estate
Market Leader in Prepaid Water Service
❑ Locations: North and Central Luzon

❑ Consumers: 16,000 households
❑ Market Share in PH: 100% (no competition yet)
Market Leader Defensive Marketing
1 Position Defense
• Building territorial sales
boundaries via brand
perception
2 Flanking Defense
• Strengthening weak sales

points of company
Market Leader Defensive Marketing
Mobile Defense 3
• Stretching the area of
operation of the company
Pre-emptive Defense 4
•Building psychological barriers
to prevent competitors from
entering market
✓ Mobile Defense
❑Expansion to
Bataan
✓Pre-emptive Defense
❑ Show of prestige
and awards
✓ Position Defense
❑Secure Franchise Area by Electrification
Power Distribution
✓Flanking Defense
❑ Address weakness (slow internet speeds)
Telecommunications
2 Market Challenger
•Has a market share below
the market leader, but
enough of a presence that it
can exert upward pressure in
its effort to gain more
control.
2 Market Challenger
• High Quantity but Low
Quality than Market Leader
• Wants to steal market share
from market leader.
• Invests resources to find
differentiators and creating
marketing programs.
Market Challenger
1 Frontal Attack
2 Flanking Strategy
3 Encirclement
4 Bypass Strategy
Market Challenger Attack Strategies
1 Frontal Attack
• Attempts attacking
strengths rather than
weaknesses.
• Match the leader’s
efforts and innovation
1 Frontal Attack Strength of leader
Convenience in water bill payment
and consumption management
through their card-based system
Attack of challenger
A more convenient system with
integrated online payment, and
app-based management.
1 Frontal Attack
Features
❑ WiFi Analogue Water Meter
❑ Proprietary Mobile App
✓ Current Balance
✓ Average Daily Consumption
✓ Projected Consumption
✓ Interruption and Turbidity Alerts
✓ Third-Party Payment
Integration (GCash, PayMaya,
GrabPay, etc)
2 Flanking Strategy
• Concentrates
attacking weaknesses
rather than its
strengths.
• Capture a market
segment w/o much of
a fight
2 Flanking Strategy
Weakness of leader
Card - based system requires
consumers to manually check balance
and pay load in a loading station
App-based system ensures convenient
access to payment and balance. Alerts
and smart data analysis to help regulate
water usage.
3 Encirclement
• “Pinalibutan”
• Attacking from several
directions at once with
a combination of
frontal and flanking
attacks to confuse the
market leader
4 Bypass Strategy
•Attempts to bypass
the market leader
entirely and targets
new markets.
•Retaliation of leader Leader
is unlikely
4 Bypass Strategy Weakness of leader
VWSSI focused on less densely
populated rural areas (Pampanga
& Bataan)
Initially focus on offering prepaid water
service to densely populated areas
(Metro Manila), an easier market
4 Bypass Strategy 2002
Blockbuster, the leading video rental
store, refused to purchase Netflix, an
online movie streaming startup, as it
is “serving a niche market”
2010
Blockbuster declared
bankruptcy, while Netflix has 24
million concurrent subscribers
3 Market Follower
❑ Company that follows the
trends of the market
leader.
❑ Seeks to gain market
share but is less interested
in differentiating its brand
from the market leader.
Market Follower Passive Strategies
1 Adapter
•Adopting products and
services to sell to
different market
•Differentiation: Just
enough improvement on
adapted goods and
services
1 Adapter
SMARTPHONE MARKET
• Market Leader
❑ Samsung
• Market Challengers
❑ Apple, Huawei
1 Adapter
❑Samsung popularized
smartphones with bezel-
less AMOLED display and
large Size
❑Market followers adapted
Samsung’s design
philosophy to increase sales
1 Adapter
Differentiating Factors
❑ Performance (CPU&RAM)
❑Camera (MP, Resolution)
❑Build Quality (Materials)
❑Price point (Budget,
Midrange, Flagship)
2 Cloning
• Making the same
product as the leader
but with lower quality.
• Emulate goods and
service of market leader
• Claims to sell similar to
leader’s products
3 Imitation
• Copying products,
services or IP
• Differentiation in terms
of advertising, price
and location
• Some form of
deception
4 Market Nicher
Make specific products
and/or services for specific
demand of customers
which are not met by
otherwise available
products.
4 Market Nicher
Seeks to dominate a small part
of the overall market where it
does business.
Succeed in a specific area with
a specific audience by focusing
on specific differentiator
aligned with the niche.
Market Nicher Strategies
1 Specialization
• Allotting more
company resources
than leader in
improving and
perfecting the
product and service
1 Specialization
Target niche
• Consumers that want to manage their
water utility finances
1 Specialization Focus of leader
VWSSI is a water distribution
service, prepaid water payment is
not their main focus
Focus of nicher
The company aims to surpass leader’s card
based system with its app-based system. To
achieve that, it the company will allot
more resources in prepaid water service
2 Multiple Niching
• Invest in multiple niches
at once
• Divide and conquer
• Circumvent the
relatively small size and
high risk of niche
markets.
2 Multiple Niching
Market leader
may use their
resources to
create niche
brands.
2 Multiple Niching
Market identification and analysis

Nicdao ticar Santander Tayona
Topic outline
1 Market
2 Market Analysis
3 How does market analysis help?
4 Dimensions of market analysis

Topic outline
1 Market
2 Market Analysis
3 How does market analysis help?
4 Dimensions of market analysis

Objectives
General Objectives
To create a market analysis for the proposed business
Specific Objectives
To identify the target market of the business
To determine the factors that affects the market
To determine the factors that affects the market

MARKET - DEFINITION
A market is most commonly thought of

as a physical location where we go to
buy food or other goods, or as a local
gathering where smallholders sell their
produce on a regular basis.
Market and Market Analysis

Nicdao ● Ticar ● Santander ● Tayona
refers to the buying and selling of a
product, as well as the establishment of
its price
market in business is used as a term to

characterize the people or
organizations that make up the pool of
current and potential clients for their

FACTORS AFFECTING THE MARKET
Consumer behavior and economic

trends are examples of market
characteristics that might influence a
sales market. These factors are
government, international
transactions, speculation and
expectation, and supply and demand.

FACTORS AFFECTING THE MARKET - Government Policies
The buying habits of a consumer

market can be influenced by the
actions of local, state, and national
governments. As a result, your
company's sales, income, and profit
may suffer.

FACTORS AFFECTING THE MARKET - International Conditions/Transactions
The strength of a country's economy

and currency is influenced by the flow
of capital between countries. The
more money leaves a country, the
worse its economy and currencies
become.

FACTORS AFFECTING THE MARKET - Speculation and Expectation
When investors bet on the future of

certain items and marketplaces, and
then invest based on those
speculations, sales and customer
behavior might be affected.

FACTORS AFFECTING THE MARKET - Supply and Demand
As supply and demand fluctuate, so do

prices and rates. Prices will rise if
something is in high demand and
supply begins to diminish. Prices will
decline if supply grows faster than
demand.

ENVIRONMENTAL SCANNING
the process of examining the internal and external factors which

influence the firm's operations and decision making to identify market
opportunities and threats.

MARKET IDENTIFICATION
The process of determining the groups

of customers to focus on in a company's
marketing mix is known as target
market identification.

BENEFITS OF MARKET
IDENTIFICATION
1 More effective marketing mix.
2 Helps you choose the right marketing channels.
3 Uses limited time, money, and resources more efficiently.
4 Maximizes sales and profits.

TARGET MARKET IDENTIFICATION
1. Assess product or service characteristics
Make a list of the qualities and

advantages that your product or
service offers.

2. Identify why customers would buy from you.
Determine the main selling point that

provides clients a reason to acquire
your product or service based on the
features and benefits you listed.

3. Identify the most relevant dimensions of segmentation.
Determine the main selling point that

provides clients a reason to acquire
your product or service based on the
features and benefits you listed.

4. Segment the market according to specific criteria.
Identify one or more specific

segments that will define the target
market.

5. Choose the most profitable segments to include in the target market
Evaluate the firm's financial resources

and the profitability of each identified
market segment

MARKET ANALYSIS
The term "market analysis" refers to a quantitative and qualitative

evaluation of a market. It examines the market's size, both in terms of
volume and value, as well as the various consumer segments and
buying behaviors, competition, and the economic climate in terms of
entry obstacles and regulation.

OBJECTIVES OF MARKET ANALYSIS
• To Know the Buyers.
People, products, and the process of transfer are all part of marketing. Every company
is keen to learn about all of the people who are willing to pay for the company's goods
or services.
• To Measure the Impact of Promotional Efforts.
In modern days of changing marketing conditions, it is quite likely that a company may
follow different strategies to promote a product of a service depending on the market.

• To Know Consumer Response.
Market-product testing is the study of consumer responses. An alert company keeps

track of how customers react to a product that has just been launched on the market.
• To Know Market Costs and Profits.
Marketing cost is an input that a company uses to carry out its marketing program and
is used as a benchmark for performance.

• To Master the External Forces
Internal controllable causes and external uncontrollable forces drive changes in the
firm's policies and strategies.
• To Design and Implement Marketing Control
Marketing forecasting or planning leads to the creation of a marketing control process.

Plans are meaningless unless they are carried out. Control determines whether the
actual efforts are on track with the original strategy.

DIMENSIONS OF MARKET ANALYSIS
Market Size
Market Growth Rate
Market Profitability
Market Segmentation
Market Trends
MARKET IDENTIFICATION AND ANALYSIS
Nicdao ● Santander ● Tayona ● Ticar
Industry Cost Structure
Distribution Channel
Key Success Factors

1. MARKET SIZE
Market size refers to the current and
potential sales of the selected market.
Roughly said, this is the number of
people or organizations who are the
potential buyers and sellers of a given
product/service.
Market size is determined by browsing through the information from various sources
such as the information from trade associations, government research, customer
surveys, different types of financial data etc.

1. MARKET SIZE
Example: The market for engineering
equipment typically varies from country to
country. In tropical countries, the demand
for winter construction tools and
equipment is zero. Whereas in countries
with four seasons, there is a large demand
for winter construction tools and
equipment. The population in these
countries might be similar, but the market
size of each may vary greatly for each
specific product line.

2. MARKET GROWTH RATE

Market growth rate refers to the
increase in size and/or sales within a
particular target market over a given
period of time. Businesses will find out
the growth and how long the market
will last.
There are many market growth drivers, like, demographic pattern, growth of
sales in complementary products, income level, changing lifestyle of users of
products and services, changing customers’ taste and preferences among others.

2. MARKET GROWTH RATE
Example: As international trade

and growth in developing
countries increase, it is possible to
evaluate the potential acceptance
rate of hi-tech features on
bicycles in markets traditionally
dominated by low-cost versions.

3. MARKET PROFITABILITY
Profitability levels in any organization,
to a great extent, are market
dependent. Organizations may have
different levels of profitability in
different market situation, which
depends on number of factors.
Michael Porter, through his five competitive forces, explained the way to
measure the market situation. This framework of competitive forces, to a large
extent influences the market profitability.

4. MARKET SEGMENTATION
This is the process of dividing a market (existing

and potential customers) into groups of
consumers known as segments. These segments
share similar characteristics, such as age, income,
personality traits, behavior, interests, needs or
location
There are 4 types of market segmentation: Geographic segmentation;

Demographic segmentation; Psychographic segmentation; Behavioral
segmentation

Geographic Segmentation:
customers based on geographic boundaries. The
needs and interests of potential customers vary
according to their geographic location
Demographic Segmentation:
consists of dividing the market through different
variables such as age, gender, nationality,
education level, family size, occupation, income,
etc.

Psychographic segmentation
consists of grouping the target audience
based on their behavior, lifestyle, attitudes
and interests.
Behavioral segmentation
focuses on specific reactions, i.e.
the consumer behaviors, patterns and the
way customers go through their decision-
making and purchasing processes.
5. MARKET TRENDS
A market trend is a perceived tendency

of a market upward or downward
movement over a specific period of
time. Businesses should know the
current trends to keep up with their
changing desires of consumers
When you are starting off a business you need to know what the current trend
is. What is the thing that the customers like? How much they are willing to
spend? What other trends may capture their attention?

5. MARKET TRENDS
Example: During this pandemic,

consumers are willing to spend to
face masks, alcohols, disinfectants,
etc. Small spray bottles capture the
attention of the public because it can
be easily carried. Also, the trend for
face shield had ceased because it’s
not anymore required.

6. INDUSTRY COST STRUCTURE
This is a process where a firm identifies

its primary and support activities that
add value to its final product and then
analyze these activities to reduce
costs.
When the organization focuses and invests only on the activities that are
critical for value creation, it can develop a competitive edge over the
competitors in the market.

6. INDUSTRY COST
STRUCTURE
VALUE CHAIN ANALYSIS

by MICHAEL PORTER

7. DISTRIBUTION CHANNEL
Distribution channels facilitate in

reaching the products to the end-users
on real time basis.
For instance, online sales and distribution have greatly impacted the
marketing and sale of most goods. Relationships with shipping companies
become equally important as the customer expects quick and reliable delivery.

8. KEY SUCCESS FACTORS
The key success factors are those

elements which help the business to
achieve great success in the market.
These are things which the company did
well that have enabled them to produce
great results.
Key success factors include accessibility to essential resources, distribution

channels, patents, operational efficiencies, technological superiority, and
ability to achieve economies of scale.

Topic outline
1 Marketing Strategy vs Marketing Plan
2 7 P’s of Marketing Mix
3 Five Areas of Marketing Analysis
The Importance of Marketing

4 Identification and Analysis
Marketing Identification and Analysis

Marketing Strategy vs Marketing Plan
Marketing Strategy
what you need to achieve with your efforts to
market products or services to customers
Marketing Plan
identifies the target market, the value proposition of the brand or the
product, the campaigns to be initiated, and the metrics to be used to
assess the effectiveness of marketing initiatives

Marketing Strategy & Marketing Plan
⮚Objective: R each new cus tomers and pers uade them to adopt
App A
⮚Marketing strategy: Appeal to older cons umers by s howing

that App A is eas ier to us e than competitors for keeping in
touch with relatives
⮚Marketing plan: Develop commercials s howing how eas y it is

for g randparents to us e App A when video chatting with
g randchildren
⮚Implementation: Create a s eries of commercials

, then air them
7 P’s of Marketing Mix
The process of designing and integrating various elements of
marketing in such a way to ensure the achievement of
enterprise objectives

Product
1
Marketing consultants will consider carefully
which features of the product are most likely to
appeal to its target market as well as its life span,
potential for diversification and development.

Price
2
It is set for a product that determines not only the
amount of profit the business will be able to
make but also affects the value of the product as
perceived by the consumer

Place
3
A location for your business. If
your business is not located where your
customers are, you need to find ways to
get your products to the customers. This
is called distribution.

Promotion
4
It covers all the media by which a business
informs customer about its product including
advertising, public relations and sales
promotion

People
5
Knowing the customer is the key of a
successful marketing strategy. Without
accurate profiling, the product may fail to
sell

Process
6
This refers not just to the way in
which a product is wrapped, but also
to its overall preentation

Physical Evidence
7
The overall appearance of your product or
company. You should consider what
customers should see and feel whenever
they interact with your business or
product.

Five different areas of Market Analysis
1 ⮚Market Description – Examine your Market

• What target group is your product or service aimed at?
• What age group is your product aimed at?
• What is the average income of your target market?
• Where does your target market live?

2⮚Market size and Market development
• How attractive is the market?

3 ⮚Competitive Analysis
• How quickly should you enter the market?
• What are the dangers of entering the market?
• Who offers a similar range of products and how many
competitors are there?
• What do your competitors do well and what can you do better?
• How similar is your target market to that of your competitor?

4 ⮚Analysis of the customer industry

• How high are the revenues generated in the particular
industry?
• Which company is the market leader?
• What are the current trends in the industry?
• Which innovations have been able to advance the industry?

5⮚Potential analysis of the target market
• How will the market develop in the future?

Importance of Market Identification and Analysis
Regulation of Product
-Involve the analysis of how economically
Regulation
priced your product is of Product
Competition
-Allows you to avoid clashing with stronger Barriers
Competition
businesses
Applications
Demographics
-Finds your ideal customer
Technological assessment
-Refrains the product from being outdated Technological Demographics
assessment
Barriers
-Takes note of what you want and should sell

Conclusion
“Marketing means Why Entrepreneurs Must

Understand Their Market
identifying the needs of Before Entering It?
consumers and satisfying
them better than your
competitors in order to
make a profit.”
INTRODUCTION TO
ENTREPRENEURSHIP
AND
CUSTOMERS
Prepared by:
Engr. Milagros R. Cabangon

OBJECTIVES
✓ To define the basic terms in Entrepreneurship
✓ To identify the characteristics that make up an entrepreneurial mindset
✓ To differentiate products from services.
✓ To enumerate the steps in the Tuckman’s Stages of Team Formation
✓ To determine the importance of customers in businesses
✓ To differentiate customer and consumer
✓ To enumerate the different types of customers
✓ To differentiate customer service from customer support
TABLE OF CONTENTS
Definition of Terms 3
Entrepreneurial Mindset 4
Innovation 7
Idea 9
Team Formation 14
Customer 16
Main Types of Customers 17

Customer Service and Customer Support 19
References 20
2
DEFINITION OF TERMS
▪ Entrepreneurship
o The process of setting up a new business
o The activity of setting up a business or businesses, taking on
financial risks in the hope of profit.
▪ Entrepreneur
o A person who undertakes the risk of starting a new business
venture
o Plays a key role in any economy, using the skills and initiative
necessary to anticipate needs and bringing good new ideas to
market
Figure 1: Entrepreneur
▪ Entrepreneurial Mindset
o A set of skills that enable people to identify and make the most
of opportunities, overcome and learn from setbacks, and
succeed in a variety of settings.
Figure 2: Entrepreneurial Mindset over Time
3
ENTREPRENEURIAL MINDSET
▪ Critical Thinking
o The capacity to apply higher-level, process-oriented thinking,
consider an issue from a range of possible perspectives, and use
that reasoning to make decisions.
o Examples:
▪ Analyzing and explaining risks
▪ Allocating resources
▪ Anticipating & preventing errors
▪ Evaluating the effects of
initiatives
Figure 3: The Important Questions to Ask
▪ Flexibility & Adaptability

o The ability and willingness to change actions and plans to
overcome present and future challenges.
o Must adapt their strategies and offerings to meet changing
market conditions.
o Show tolerance for ambiguous, unstructured situations
o Embrace new approaches when appropriate
Figure 4: An Entrepreneur Planning
4
▪ Communication & Collaboration

o The ability to clearly express ideas to an intended audience,
including persuading others to work towards a common goal
o Essential in marketing and sales promotion
o Important in communicating with employees and other partners
Figure 5: Communication and Collaboration in a Team
▪ Comfort with Risk

o The capacity to move forward with a decision despite inevitable
uncertainty and challenges
o Strategies used when taking risks:
▪ Research
▪ Marketing
▪ Planning
▪ Testing and reporting
▪ Initiative & Self-Reliance

o The power to take ownership of a project without input or
guidance and work through obstacles independently.
▪ Future Orientation
o An optimistic disposition with a focus on obtaining the skills and
knowledge required to transition into a career.
5
▪ Opportunity Recognition
o The practice of seeing and
experiencing problems as
opportunities to create
solutions.
o It relies on the ability of
people to recognize
patterns and connect the
dots.
Figure 6: Perspective on Challenges
▪ Creativity & Innovation

o The ability to think of ideas and create solutions to problems
without clearly defined structures.
Figure 7: Creativity and Innovation in Entrepreneurship
6
INNOVATION
▪ Derived from the Latin verb innovare, which means “to renew”
▪ Involves applying new processes, introducing new techniques, or
establishing successful ideas to create new value.
▪ Examples of Innovation in the Philippines:
Figure 8: Plant-derived active ingredients for pharmaceuticals Figure 9: Philippines’ first locally-made diesel engine
Figure 10: Robotics for physical rehabilitation
Importance of Innovation:
✓ Innovation Helps Companies Grow
o Increasing need for growth and change provides a great deal of
opportunity for businesses.
o Options:
▪ Grow your business by merging or acquiring others
▪ Choose to evolve by rethinking your product or business
model
7
✓ Innovation Keeps Organizations Relevant

o “Adapt or die” principle
o Example: (Reference: northeastern.edu)
▪ Technology continually proves to be a driving factor in the need

for change
▪ 90% of the world’s data has been created in the last couple of
years.
▪ More than 570 new websites are created every minute.
✓ Innovation Helps Organizations Differentiate Themselves

o Innovation is about doing something uniquely from your
competitors.
o Becoming a standout element of your brand identity and
business strategy.
Figure 11: Samsung vs. Apple
8
IDEA
▪ Starting point for any current or future entrepreneur.
▪ Essential only in the initial stage of a startup.
▪ Steps on what to do after having the business idea:
1. Define Your Target Market
✓ Target Market - a group of people on the market who share
similar attributes related to their problems, needs, or desires
✓ Determines your potential customers with the highest likelihood
that they will buy something from you.
2. Define Your Products and Services

▪ Every business will rely on something that will sell to customers.
▪ You will need to answer the following questions:
• What product or service you will offer?
• What are the features of these products or services?
• Also, what are the benefits that your products or service will
bring to your potential customers?
• What types of additional services will be offered by that
product or service?
Figure 12: Products (Goods) vs. Services
9
3. Define the Market for Your Business Idea

✓ Accurately defining the exact market for your product or service.
✓ Here are some questions that you as an entrepreneur will need
to answer:
▪ On which market you will offer these products and services
▪ Who will be the customer of these products or services?
▪ What are the features of those customers who will consume
your products or services (sex, age, income, ethnicity,
problems, desires, needs, etc.)?
4. Define Your Main Competitors

✓ What are the five most significant market players in the industry
in which you categorize your business idea?
✓ What, where, and how do those five major market players offer
their products and services?
✓ What are the main features of their products or services?
✓ What are the benefits that they provide to the market with their
products or services?
✓ What is the resistance of the market related to the entry of new
competitors and how difficult it can be accomplished?
Figure 13: Market Competition
10
5. Competitive Benchmarking
▪ Benchmarking - a technique that identifies industry best practices
followed by setting goals to implement action to achieve goal or
overtake competitors
▪ Benchmarking Process:
1. Make a decision what will be benchmarked.
2. Select companies that will be benchmarked.
3. Collect information for selected companies and industry
standard
4. Analyze data
5. Create a benchmarking
6. Making suggestions for improvement
7. Implementation of improvements
8. Repeating benchmarking.
6. Define Resources Required by Your Business Idea

▪ How many human resources you will need?
▪ What kind of intellectual capital will you need for your business?
▪ How much financial resources you will need?
▪ Where will you find that financial resources?
▪ What material resources you will need?
▪ Where will you find that material resources?
▪ What information resources you will need?
▪ What will be the sources of that information resources?
Figure 14: Company Resources
11
7. Calculate Your Startup Costs

▪ Startup costs are one-time costs for starting a business
▪ Examples: Land cost, equipment installation cost
8. Calculate Costs of Goods Sold (COGS) and Operations Costs

▪ Sales unit - foundation on which everything else in your
business is built.
▪ Define your sales unit:
o One product unit
o One hour of service time
o Average sales/customer (if selling more than 1 type of
product)
▪ Operations costs are necessary for the company’s
everyday operations without including the costs of goods
sold.
▪ Remain the same no matter how many sales you generate.
▪ Examples: Wages, Rent, Overhead Costs (electricity, petrol,
telephone, water, garbage, etc.)
Figure 15: Operation Costs
12
9. Develop Your Business Model

▪ Business Model - a company's plan for making a profit.
▪ Describes the rationale of how an organization creates, delivers
and captures value.
▪ Divided into 9 Parts:
• Customer Segments
• Value Propositions
• Channels
• Customer Relationships
• Revenue Streams
• Key Resources
• Key Activities
• Key Partnerships
• Cost Structure.
Figure 16: Business Model Canvas
13
TEAM FORMATION
▪ Team - A group of individuals working together to achieve their goal.
▪ A diverse team of people who can contribute ideas helps a company
thrive
▪ Collaboration within a group can help solve difficult problems
▪ Creates a system to ensure that deadlines are met and that there's
high quality work
▪ Members of a team feel a strong sense of belonging and deep
commitment to each other and the common goal
Tuckman’s Stages of Team Formation
1. FORMING
▪ Stage where a group of people
comes together to accomplish
a shared purpose
▪ The leader plays a dominant
role at this stage because
team members' roles and
responsibilities aren’t yet clear.
Figure 17: Forming
2. STORMING
▪ Disagreement are constant at this
stage of development since team
members are still getting to know
each other
▪ The leader’s role is to help the team
get to know each other
Figure 18: Storming
14
3. NORMING
▪ Members start to resolve their differences, appreciate colleagues'
strengths, and respect the authority of the leader
▪ The leader shall ask for periodic updates from the team and regularly
check the team’s progress
4. PERFORMING
▪ The stage at which the real work of the team is progressing
▪ The leader shall help solve problems and provide input as needed
Figure 19: Tuckman’s Stages of Formation
15
CUSTOMER
▪ An individual or business that purchases another company's goods or
services
▪ Important because they drive revenues
▪ They are the foundation for businesses
▪ "The customer is always right” principle
o Happy customers are more likely to patronize companies who
meet or exceed their needs
Figure 20: Customer
Customer vs. Consumer

CUSTOMER CONSUMER
▪ The one who purchases ▪ May not be the one who
the product purchased, but the end-user
▪ May resell the product to ▪ Cannot resell the product
gain profit for profit
▪ Motive of buying is for
consumption only
▪ Could be anybody – an ▪ Individual, family or
individual or a company group
Table 1: Customer vs. Consumer
16
Main Types of Customers

▪ Loyal customers
o Customers that make up a minority of the customer base but
generate a large portion of sales
o They are likely to recommend the company’s products to others.
o Important to solicit their feedback and involve them in a company’s
decision-making process
▪ Impulse customers
o Best customers to upsell to and the second most attractive segment
to focus on
o Impulse customers do not have a specific shopping list in mind and
purchase products spontaneously
o Impulse customers are typically receptive to recommendations on
products
o Second to loyal customers in the generation of sales revenue.
Figure 21: Impulse Customers
▪ Discount customers
o Play an important role in turning over a company’s inventory.
o Discount customers are a key contributor to a company’s cash
flow.
o Usually the least loyal segment of customers
o They move on when better markdowns are available elsewhere
17
▪ Need-based customers
o They enter the store quickly, purchase what they need, and leave
o These customers buy for a specific need or occasion and are hard
to upsell
o It is important to initiate positive personal interaction with this
customer segment in order to retain them
o Converting need-based customers to loyal customers is attainable
with proper positive personal interactions.
Figure 22: Need-based customers
▪ Wandering customers
o Wandering customers draw
the largest amount of traffic
to the company while making
up the smallest percentage
of sales revenue
o They have no specific need
or desire in mind and are
attracted by the location of
the business more than
anything else Figure 23: Wandering customers
18
Customer Service
✓ The degree of assistance and courtesy granted those who patronize a
business
✓ A series of activities designed to
enhance the experience of the
customers before, during and after
purchase of a product
✓ The purpose of the customer service is
to meet the expectations of the
customers so that they are satisfied
with the outcome.
✓ A good customer service benefits the
business or companies as it will
eventually produce satisfied Figure 24: Customer Service
customers.
Customer Support
✓ A series of customer services
to support the customers in
making the correct use of a
product
✓ Provides the customers with a
series of services in order to
make cost-effective choices
and appropriate use of a
Figure 25: Customer Support
product
19
REFERENCES
▪ https://www.investopedia.com/terms/e/entrepreneur.asp
▪ https://www.nfte.com/entrepreneurial-mindset/
▪ https://www.insightassessment.com/blog/18-examples-of-using-critical-thinking-
in-business
▪ https://www.growthink.com/businessplan/help-center/critical-entrepreneurial-skills
▪ https://online.wharton.upenn.edu/blog/is-risk-taking-behavior-key-to-
entrepreneurial-spirit/
▪ https://www.northeastern.edu/graduate/blog/importance-of-innovation/
▪ https://www.entrepreneurshipinabox.com/1016/business-idea/
▪ https://www.strategyzer.com/expertise/business-models
▪ https://yti.edu/blog/reasons-teamwork-is-important-in-the-workplace
▪ https://www.investopedia.com/terms/c/customer.asp
▪ https://byjus.com/commerce/difference-between-customer-and-consumer/
▪ https://www.nicereply.com/blog/the-importance-of-customer-loyalty/
▪ https://corporatefinanceinstitute.com/resources/knowledge/other/types-of-
customers/
▪ https://www.myaccountingcourse.com/accounting-dictionary/customer-loyalty
▪ https://www.entrepreneur.com/encyclopedia/customer-service
▪ https://entrepreneurhandbook.co.uk/what-is-customer-service/
20
CUSTOMERS
Prepared by: Engr. Milagros Cabangon

OBJECTIVES
• To determine the importance of
customers in businesses
• To differentiate customer and consumer
• To enumerate the different types of
customers
• To differentiate customer service from
customer support
CUSTOMER
• an individual or business
that purchases another
company's goods or
services
• Important because they
drive revenues
• They are the foundation for
businesses
CUSTOMER
• "THE CUSTOMER IS ALWAYS RIGHT“ principle
• Happy customers are more likely to patronize
companies who meet or exceed their needs
• Many companies closely monitor their customer relationships
to solicit feedback on methods to improve product lines
CUSTOMER VS. CONSUMER
CONSUMER
- May not be the one who
purchased, but the end-
user
CUSTOMER
- The one who purchases
the product
CONSUMER
- Could be anybody – an
individual or a company
CUSTOMER
- Cannot resell the
product for profit
- Motive of buying is for
consumption only
CONSUMER
- May resell the product
to gain profit
CUSTOMER
- Individual, family or
group
MAIN TYPES OF CUSTOMERS
LOYAL
CUSTOMERS
• Customers that make up a
minority of the customer
base but generate a large
portion of sales
• They are likely to recommend the company’s

products to others.
• Important to solicit their feedback and involve
them in a company’s decision-making process
LOYAL CUSTOMERS: EXAMPLE
STARBUCKS
• The company has managed not only to retain its
customers but also to expand its customer base
through exemplary loyalty program
• Starbucks compensates
its loyal customers with
loyalty points and
discounts
IMPULSE CUSTOMERS
• Best customers to upsell to and the second most
attractive segment to focus on
• Impulse customers do not have a specific shopping list
in mind and purchase products spontaneously
IMPULSE CUSTOMERS
• Impulse customers are
typically receptive to
recommendations on
products
• Second to loyal customers
in the generation of sales
revenue.
DISCOUNT CUSTOMERS
• Play an important role in turning over a company’s inventory.
• Discount customers are a key contributor to a company’s cash
flow.
• They seldom purchase products at full price and shops
around for the best markdowns
DISCOUNT CUSTOMERS
• Usually the least loyal

segment of customers
• They move on when
better markdowns are
available elsewhere
NEED-BASED CUSTOMERS
• They enter the store
quickly, purchase what
they need, and leave
• These customers buy for
a specific need or
occasion and are hard to
upsell
NEED-BASED CUSTOMERS
• It is important to initiate positive personal interaction
with this customer segment in order to retain them
• Converting need-based customers to loyal customers
is attainable with proper positive personal interactions.
WANDERING CUSTOMERS
• Wandering customers draw the
largest amount of traffic to the
company while making up the
smallest percentage of sales
revenue
• These customers enjoy the

social interaction of the
shopping experience
WANDERING CUSTOMERS
• They have no specific need or desire in mind and are
attracted by the location of the business more than
anything else
• Providing insightful information about products to these
customers can stimulate interest and result in a purchase
CUSTOMER SERVICE
• The degree of assistance and courtesy granted those
who patronize a business
• A series of activities designed to enhance the
experience of the customers before, during and after
purchase of a product
CUSTOMER SERVICE
• The purpose of the customer
service is to meet the
expectations of the customers so
that they are satisfied with the
outcome.
• A good customer service benefits

the business or companies as it
will eventually produce satisfied
customers.
CUSTOMER SUPPORT
• A series of customer services to support the
customers in making the correct use of a product
• Provides the customers with a series of services in
order to make cost-effective choices and appropriate
use of a product
CUSTOMER SERVICE VS. CUSTOMER
SUPPORT
Value
Proposition
General Objective
• To be able to write a comprehensive

value proposition
Value Proposition Asuncion | Cirujano | Oseña

Specific Objectives
• To identify the basic concepts needed to
formulate a comprehensive value proposition
• To describe what value proposition is and

enumerate the six-step value proposition process.
• To understand the value proposition canvas and

identify its components

Introduction
“Value is more
expensive than price. “

Client Mindset
• Inside-out: Clients must be

persuaded to buy what our organization
decides they should buy, based on ease
and convenience for our organization.
Customer
• Outside-in: ‘Clients must be supplied
with whatever goods or services they say
they want

Client Mindset
• Requires the organization

Offer
to put themselves into their Organization and Customer
customers’ and consumers’ Demand
situations

Changes for Corporate Success
Pre-millennium Post-millennium
• •
•
•
• •

What is Value?

What is Value?

What is Value?

Types of Value

Types of Value

Types of Value

Types of Value

The Value Pyramid

The Value Pyramid

The Value Pyramid

The Value Pyramid

VALUE PROPOSITION
Cirujano, Prince Jayson R.

It was coined in the 1980s by
Michael Lanning and
defined as “the essence of a
business”
Statement that identifies the

benefits a company’s
products and services will
deliver to its customers
Value proposition details what you offer
customers and why they should choose you
Mission statement details the

business/organization objectives
A slogan is a short and catchy statement that

brands use to sell product.
A short statement that embodies a certain

aspect of the brand or business.
IT NEEDS TO BE SHORT
Keep your message quick,
reliable and understandable.
USE SIMPLE LANGUAGE
Complicated words can confuse
your confuse your readers
MAKE IT SPECIFIC
Communicate concrete results a
costumer will get from purchasing
your product/service
❑ Target market and potential
customers can quickly
understand what your
business has to offer.
❑ Attracts the right prospects

and increases the quantity and
quality of prospective leads.
❑ Improves customer
engagement and
understanding
❑ Provides clarity of
messaging
❑ Differentiates your
business from
competitors
Proposed by Michael Lanning
MARKET
Analyzing and identifying the
market segments, or target
individuals has the potential to
deliver value.
VALUE EXPERIENCE
Analyze and define the value
experience that clients get from
your organization from its
current activities.
Define the offerings mix capable
of leveraging your proven value OFFERINGS
experience with the defined
target market group.
Assess the benefits of the
VALUE HIERARCHY offerings in the context of the
OR BENEFITS value experience you are able to
deliver to the market group.
ALTERNATIVES AND
DIFFERENTIATION
Identify the alternatives that

your company used and how and
why your company different to
other company.
After those 5 processes back it
PROOF all up with your relevant and
substantiated proof.
EXAMPLES OF VALUE PROPOSITION
EXAMPLES OF VALUE PROPOSITION
Value Proposition Design:

The Value Proposition Canvas
Oseña, Rynzier V.
SCENARIO
One day, your close friend came
up to you and asked for help in
coming up with what business to
pursue in this modern-day, but
they do not know where to start.
You, being knowledgeable in
technopreneurship back in your
college years, decided to help
them by sharing the things you
have learned.
SUITE OF BUSINESS TOOLS
Environment Map:
helps you understand the context
in which you create
Business Model Canvas:
helps you create value for your
business
Value Proposition Canvas:
helps you create value for your
customer
ENVIRONMENT MAP
Consists of:
1. Key Trends
2. Market
Forces
3. Macro-
economic
Forces
4. Industry
Forces
Key Trends: the evolving parameters of the
law, culture and technology, which may
change whether an idea is possible or
acceptable.
Market Forces: Key customer issues in your
area, such as growing or shrinking segments;
our constantly changing customer segment
and their expectations.
Macro-Economic Forces: The financial health
of society and each person in it; affects our
customers’ willingness and ability to pay for
different things.
Industry Forces: Other businesses who offer
similar value propositions to similar
customers; could be existing competitors,
new entrants or substitutes.
SCENARIO
After hearing what you discussed,
something clicked in them. They
remembered that most businesses
today are centered on our laptops and
phones, like how Grab and Uber
revolutionized the way we commute,
Shoppee and Lazada on the way we
shop, or like how Netflix changed the
way we watch films, by carefully
examining today's business
environment.
SCENARIO
Your friend then came up
with a great idea: "Why don’t
we revolutionize the way we
buy our groceries and the
way we prepare our meals?"
they said. As a kind friend,
you supported their idea and
asked what they had in mind.
SCENARIO
"I want my customers to access a
full assortment of simple yet
tasty recipes, quality local
products or ingredients, and also
shopping and ingredients lists, so
that they can buy them in the
comfort of their homes through
an application or website.”
Hearing that, you supported
their idea and continued with
your discussion.
BUSINESS MODEL CANVAS
A tool to describe how your organization creates, delivers,

and captures value.
COMPONENTS OF THE BUSINESS MODEL CANVAS
CUSTOMER SEGMENTS
groups of people
and/or organizations
a company or
organization aims to
reach and create
value for with a
dedicated value
proposition.
VALUE PROPOSITIONS
based on a bundle of
products and services
that create value for
a customer segment.
CHANNELS
describe how a value

proposition is
communicated and
delivered to a
customer segment
CUSTOMER RELATIONSHIPS
outline what type of
relationship is
established and
maintained with each
customer segment,
and they explain how
customers are
acquired and retained
REVENUE STREAMS
result from a value
proposition
successfully offered
to a customer
segment; how to
capture value with a
price that
customers are willing
to pay
KEY RESOURCES
most important
assets required to
offer and deliver the
previously described
elements.
KEY ACTIVITIES
most important
activities an
organization needs to
perform well.
KEY PARTNERSHIPS
shows the network of

suppliers and
partners that bring in
external resources
and activities.
COST STRUCTURE
the aggregate of the
various types of
costs, fixed and
variable, that make
up a business' overall
expenses; describes
all costs incurred to
operate a business
model.
VALUE PROPOSITION CANVAS
A tool to help clarify your customer understanding and

describe how you intend to create value for that customer.
COMPONENTS OF THE VALUE PROPOSITION CANVAS
VALUE PROPOSITION MAP

Set of value proposition benefits that
you design to attract customers.
Describes the features of a specific
value proposition in your business
model in a more structured and
detailed way. It breaks your value
proposition down into products and
services, pain relievers, and gain
creators.
COMPONENTS OF THE VALUE PROPOSITION CANVAS
CUSTOMER PROFILE
Set of customer characteristics that

you assume, observe, and verify in the
market. Describes a specific customer
segment in your business model in a
more structured and detailed way. It
breaks the customer down into its
jobs, pains, and gains.
COMPONENTS OF THE CUSTOMER PROFILE
CUSTOMER JOBS
Describe the things your customers

are trying to get done in their work or
in their life. A customer job could be
the tasks they are trying to perform
and complete, the problems they
are trying to solve, or the needs they
are trying to satisfy.
CUSTOMER JOBS
3 Main Types:
1. Functional: perform or complete a
specific task or solve a specific problem
(report writing, dish cleaning, etc.)
2. Social: want to look good or gain power
or status (look trendy, look competent)
3. Personal/Emotional: seek a specific
emotional state (seeking peace of mind in
investments, feeling of job security)
CUSTOMER PAINS
Describe anything that annoys your

customers before, during, and after
trying to get a job done or simply
prevents them from getting a job
done. Pains also describe risks, that is,
potential bad outcomes, related to
getting a job done badly or not at all
CUSTOMER PAINS
3 Main Types:
1. Undesired outcomes, problems, and
characteristics:
• Functional (a solution doesn’t work,
doesn’t work well, or has negative side
effects)
• Social (“I look bad doing this”)
• Emotional (“I feel bad every time I do
this”)
• Ancillary (“It’s annoying to go to the
store for this”)
CUSTOMER PAINS
3 Main Types:
2. Obstacles: things that prevent customers
from even getting started with a job or
that slow them down
3. Risks: What could go wrong and have
important negative consequences
CUSTOMER PAINS
• How do your customers define too costly?
• What are their frustrations, annoyances?
• Which features are they missing?
• What are the main difficulties and challenges
your customers encounter?
• What risks do your customers fear?
• What are their big issues, concerns, and
worries?
• What barriers are keeping your customers
from adopting a value proposition? Is it the
upfront investment costs? A steep learning
curve?
CUSTOMER GAINS
Describe the outcomes and benefits

your customers want. Some gains are
required, expected, or desired by
customers, and some would surprise
them. Gains include functional utility,
social gains, positive emotions, and
cost savings.
CUSTOMER GAINS
4 Main Types:
1. Required: gains that without it, the
solution would not work
2. Expected: basic gains expected from a
solution, even if it could work without
them
3. Desired: gains that go beyond what we
expect from a solution but would love to
have if we could
4. Unexpected: gains that go beyond
customer expectations and desires
CUSTOMER GAINS
• What would make your customers’ jobs or
lives easier?
• Which savings would make your customers
happy?
• What performance and quality do they
expect?
• What do customers dream about? Aspire to
achieve?
• How do your customers measure success and
failure?
• What would increase your customers’
likelihood of adopting a value proposition?
SCENARIO
Now, your friend, after
surveying people that have
experience in grocery
shopping and cooking, wrote
down their jobs, pains, and
gains on sticky notes and
stick them on the customer
profile.
Save time on
Helps start planning,
cooking shopping,
business and Eat varied,
preparing healthy,
yummy
meals
Get inspired
Simplify
for healthy
food,
and yummy
shopping,
meals
and
planning
Supermarkets Not used Improve Look good

are crowded to online cooking among
and stressful shopping skills friends,
family, etc.
Products sold
Feel
are sometimes Planning and
Not good healthier on
not in good preparing
in cooking what they
quality or fresh meals are eat
time
consuming
? Save time on
Helps start (in terms of planning,
cooking delivery shopping,
business speed) and Eat varied,
preparing healthy,
yummy
? meals
Get inspired
(in terms of Simplify
for healthy
cost relative food ?
and yummy
to other shopping, (in terms of
meals
alternatives) and their time in
planning shopping and
planning)
Supermarkets Not used Improve Look good

are crowded to online cooking
? among
and stressful shopping skills
(in terms of friends,
cost) family, etc.
Products sold
Feel
are sometimes Planning and
Not good healthier on
not in good preparing
in cooking what they
quality or fresh meals are eat
time
consuming
COMPONENTS OF THE VALUE PROPOSITION MAP
PRODUCTS AND SERVICES

A list of what you offer. It is an
enumeration of all the products and
services your value proposition builds
on. This bundle of products and
services helps your customers
complete either functional, social, or
emotional jobs or helps them satisfy
basic needs
PRODUCTS AND SERVICES

Types of Products and Services:
1. Physical/Tangible: manufactured
products.
2. Intangible: such as copyrights or services
such as after-sales assistance.
3. Digital: such as music downloads or
online recommendations.
4. Financial: such as investment funds and
insurances or the financing of a purchase.
PAIN RELIEVERS
Describe how exactly your products
and services alleviate specific
customer pains. They explicitly outline
how you intend to eliminate or reduce
some of the things that annoy your
customers before, during, or after
they are trying to complete a job or
that prevent them from doing so.
PAIN RELIEVERS
Ask yourself: Could your products and
services…
• produce savings?
• make your customers feel better?
• fix underperforming solutions?
• eliminate risks your customers fear?
• limit or eradicate common mistakes
customers make?
• eliminate barriers that are keeping your
customer from adopting value
propositions?
GAIN CREATORS
Describe how your products and
services create customer gains. They
explicitly outline how you intend to
produce outcomes and benefits that
your customer expects, desires, or
would be surprised by, including
functional utility, social gains, positive
emotions, and cost savings.
GAIN CREATORS
Ask yourself: Could your products and
services…
• create savings that please your
customers?
• outperform current value propositions and
delight your customers?
• make your customers’ work or life easier?
• fulfill a desire customers dream about?
• produce positive outcomes matching your
customers’ success and failure criteria?
SCENARIO
Likewise, they also wrote

what their product and
services offer on sticky notes
and stick them on the value
proposition map.
Ensures good
quality and
Gives access fresh local
Quick
to simple and products
deliveries
inspiring meal with
and recipe kits providing
in one place exact date
Flexible,
customizable and time
Full assortment and automatic
of simple but shopping and
tasty recipes ingredients list
online
Online Decide from

shopping Affordable home instead
and price, of lining up and
ingredients straight from be stressed out
lists the source because of the
Save customers’ crowd
time by letting
someone else (AI)
choose the best Attractive
meal and recipe starting offer to
kits based on start using the
preference app
Ensures good
quality and
Gives access fresh local
Quick
to simple and products
deliveries
inspiring meal with
and recipe kits providing
in one place exact date
Flexible,
customizable and time
Full assortment and automatic
of simple but shopping and
tasty recipes ingredients list
online ?
Online Decide from

shopping ? Affordable home instead
and price, of lining up and
ingredients straight from be stressed out
lists the source because of the
Save customers’ crowd
time by letting
someone else (AI)
choose the best Attractive
meal and recipe starting offer to
kits based on start using the
preference app
PAIN RELIEVERS VS. GAIN CREATORS
PAIN RELIEVERS GAIN CREATORS
Highlight how exactly your products
Outline how exactly your products and services help customers
and services kill customer pains. achieve gains. Each gain creator
Each pain reliever addresses at addresses at least one or more pains
least one or more pains or gains. or gains
ACHIEVING FIT
You achieve fit when customers get excited about your value
proposition, which happens when you address important jobs,
alleviate extreme pains, and create essential gains that customers
care about.
TYPES OF FIT
Problem-Solution Fit:
Have evidence that customers care about
certain jobs, pains, and gains; Designed a
value proposition that addresses those jobs,
pains, and gains.
Product-Market Fit:
Have evidence that your products and
services, pain relievers, and gain creators are
actually creating customer value and getting
traction in the market.
TYPES/PHASES OF FIT
Business Model Fit:
Have evidence that your value proposition
can be embedded in a profitable and scalable
business model.
MULTIPLE FITS
Like in intermediary and platform business
models, they work only with a combination of
several value propositions and customer
segments.
VALUE PROPOSITION WRITING
VALUE PROPOSITION CONSISTS OF:
Headline: A single short
sentence, clear and
concise. The purpose of
the headline is to grab the
attention of your readers.
Describes the benefit the
customer will receive as a
result of making a
purchase from your
business.
Subheadline: Break down

what you offer in a little
more detail what your
company offers, who it
serves, and why it would
benefit the customer.
Typically, in one to three
sentences
Visuals: They are as
important as your headline
and subheadline. A video,
infographic, or image may
convey your value
proposition better than
words alone can. It
reinforces your message
and help you create the
best value proposition
Build your Recipe Box for
FREE
Lecture
Introduction toTechnopreneurship
Technopreneurship & Product Development
So you want to be a Technopreneur?
• Yes? No?
What is Technopreneurship?
• Technology + Entrepreneurship ?
What is a Technopreneur?
• Describing an entrepreneur who uses cutting- edge
technology to develop new business models
-Mankani, D.
Definition of a Technopreneur
“Someone who uses technology to do something

new or invents new devices & then makes a
business from selling these new things”
-anonymous-
Entrepreneurship entails:
• Understanding the situation.

• Committing money and resources to pursue
it.
Entrepreneurial Equation
Give up well-paying job

+
Put everything into a venture
+
No experience
=
Too Risky?
Why us rather than someone else?
What are our differentiating factors?
• Price?
• Flexibility?
• Meeting customer needs?
• Innovative in solutions?
• Being able to value-add?
Issues
• Who is technopreneur?
• Why become a technopreneur?
• Technopreneurial motivation.
• Technopreneurial Traits, Characteristics and
Skills.
Entrepreneurship & Technopreneurship
• Entrepreneurship involves having the guts to do
what you believe is right, thinking out of the box
and making business out of it.
• Technopreneurship is being an entrepreneur by:

– Using existing technologies & suiting it to a new
application
– Inventing or developing a new product
-Axiom Technologies Mfg. Pte. Ltd.
Being A Technopreneur
• Flexible – can adapt to changing circumstances
and recover from setbacks.
• Visionary- have a vision of what he wants to
achieve so that he is not distracted from his goal.
• Practical- pointless to have ideas if they cannot
be executed.
• Realistic- to know that most start ups fail & that
in all probability he will fail.
• Romantic- will beat the odds & succeed.
• Loner- by nature but to succeed he has to be part
of a team (the more no. of productive & intelligent
people, the higher the probability of success).
• Leader- driving the team towards his vision (but
to succeed must also listen to his team members).
• Greedy- for success & rewards (performance-
oriented individual who wants results, yet he has to be
mindful of the contributions of his team members & may
have to make sacrifices to keep a winning team).
• Discipline- has to manage himself & his team
(else, his team will lose focus, dissipating their energy by
duplicating tasks, squabbling and straying down blind
alleys).
Technopreneurship
• Who are Technopreneurs?
– Technology entrepreneurs who develop an
enterprise or business venture based on
innovative technological products or services.
• What is Technopreneurship?
– It is a socio-economic phenomenon which
supports new economic growth in the k-based
economy.
– Technopreneur Development Division, MSC.
Operational Framework
Spawning & facilitating the

growth of technopreneurs & ICT
companies for success Funding
Lead Market Access
Incubation Venture Capital

[email protected]
Success comes from attitudes
Share the following:
1. A challenge in all things
2. A desire to do things as best as possible
3. A belief that everything can be done better
4. Differentiating themselves from the rest
5. Challenging the norm
Concluding Remarks
• You cannot be taught how to be an
entrepreneur
• You should enjoy the challenge
• Innovation is the key, technology is the tool
Concluding Remarks
• Differentiate yourself from the rest
• Don’t be caught up with the money
• Have fun
Prepared by: Engr. Milagros Cabangon

• A. General Objective : To develop and nurture
a enterpreneurship mindset.
• B. Specific Objectives:
To define the basic terms in entrepreneurship.
To identify the characteristics that make
up an entrepreneurial mindset.
To differentiate products from services.
To enumerate the steps in the Tuckman’s
Stages of Team Formation.
• The process of setting up a new business
• The activity of setting up a business or businesses,
taking on financial risks in the hope of profit.
• A person who undertakes the risk of starting a new

business venture
• Plays a key role in any economy, using the
skills and initiative necessary to anticipate
needs and bringing good new ideas to
market
• A set of skills that enable people to identify and make the

most of opportunities, overcome and learn from setbacks,
and succeed in a variety of settings.
• Critical Thinking
• Flexibility & Adaptability
• Communication &
Collaboration
• Comfort with Risk
• Initiative & Self-Reliance
• Future Orientation
• Opportunity Recognition
• Creativity & Innovation
The capacity to apply higher-level, process-oriented
thinking, consider an issue from a range of possible
perspectives, and use that reasoning to make decisions.
• Examples:
• Analyzing and explaining risks
• Allocating resources
• Anticipating & preventing errors
• Evaluating the effects of
initiatives
The ability and willingness to change actions and plans to
overcome present and future challenges.
• Must adapt their strategies and

offerings to meet changing
market conditions.
• Show tolerance for ambiguous,
unstructured situations
• Embrace new approaches when
appropriate
The ability to clearly express ideas to an intended
audience, including persuading others to work towards a
common goal
• Essential in marketing and
sales promotion
• Important in communicating
with employees and other
partners
The capacity to move
forward with a decision
despite inevitable
uncertainty and challenges
Strategies used when taking

risks:
• Research
• Marketing
• Planning
• Testing and reporting
• The power to take ownership of a
project without input or guidance
and work through obstacles
independently.
• An optimistic disposition with a

focus on obtaining the skills and
knowledge required to transition
into a career.
• The practice of seeing and
experiencing problems as
opportunities to create solutions.
• It relies on the ability of people to
recognize patterns and connect the
dots.
• The ability to think of ideas and

create solutions to problems
without clearly defined
structures.
• Derived from the Latin verb innovare, which means “to
renew”
• Involves applying new processes, introducing new
techniques, or establishing successful ideas to create new
value. Filipino-made innovative products (Source: Rappler, DOST)
Plant-derived active ingredients for pharmaceuticals Philippines’ first locally-made diesel engine Robotics for physical rehabilitation
• Innovation Helps Companies Grow
• Increasing need for growth and change provides a great
deal of opportunity for businesses.
• Options:
• Grow your business by merging or acquiring others
• Choose to evolve by rethinking your product or
business model
• Innovation Keeps Organizations Relevant
• “Adapt or die” principle
• Example: (Reference: northeastern.edu)
• Technology continually proves to be a driving factor in the need for
change
• 90% of the world’s data has been created in the last couple of years.
• More than 570 new websites are created every minute.
• Innovation Helps Organizations Differentiate
Themselves
• Innovation is about
doing something
uniquely from your
competitors.
• Becoming a standout
element of your brand
identity and business
strategy.
1. Define Your Target Market
2. Define Your Products and
Services
3. Define the Market for Your
Business Idea
4. Define Your Main
Competitors
6. Define Resources Required
by Your Business Idea
7. Calculate Your Startup
Costs
• Starting point for any
8. Calculate Costs of Goods
current or future Sold (COGS) and Operations
entrepreneur. Costs
9. Develop Your Business
• Essential only in the
Model
initial stage of a startup.
1. Defining Your Target Market
• TARGET MARKET - a group of people on the market who share
similar attributes related to their problems, needs, or desires
• Determines your potential customers with the highest
likelihood that they will buy something from you.
2. Defining Your Products and Services
• Every business will rely on
something that will sell to
customers.
• You will need to answer the
following questions:
• What product or service you will offer?
• What are the features of these products
or services?
• Also, what are the benefits that your
products or service will bring to your
potential customers?
• What types of additional services will
be offered by that product or service?
3. Defining the Market for Your Business Idea
• Accurately defining the exact market for your product or service.
• Here are some questions that you as an entrepreneur will need to
answer:
• On which market you will offer these products and services
• Who will be the customer of these products or services?
• What are the features of those customers who will consume your products or services
(sex, age, income, ethnicity, problems, desires, needs, etc.)?
4. Defining Your Main Competitors
• What are the five most significant market players in the industry in which you
categorize your business idea?
• What, where, and how do those five major market players offer their products
and services?
• What are the main features of their products or services?
• What are the benefits that they provide to the market with their products or
services?
• What is the resistance of the market related to the entry of new competitors
and how difficult it can be accomplished?
• Benchmarking - a technique that identifies industry best
practices followed by setting goals to implement action to
achieve goal or overtake competitors
Benchmarking Process:
1. Make a decision what will be benchmarked.
2. Select companies that will be benchmarked.
3. Collect information for selected companies and industry
standard
4. Analyze data
5. Create a benchmarking
6. Making suggestions for improvement
7. Implementation of improvements
8. Repeating benchmarking.
6. Defining Resources Required by Your Business Idea
• How many human resources you will need?
• What kind of intellectual capital will you
need for your business?
• How much financial resources you will
need?
• Where will you find that financial
resources?
• What material resources you will need?
• Where will you find that material
resources?
• What information resources you will need?
• What will be the sources of that
information resources?
7. Calculate Your Startup Costs
• Startup costs are one-time costs for starting a
business
• Examples: Land cost, equipment installation cost
8. Calculate Costs of Goods Sold (COGS) and
Operations Costs
• Sales unit - foundation on which everything
else in your business is built.
• Define your sales unit:
• One product unit
• One hour of service time
• Average sales/customer ( if selling more than 1 type
of product)
8. Calculate Costs of Goods Sold (COGS) and
Operations Costs
• Operations costs are necessary for the company’s everyday
operations without including the costs of goods sold.
• Remain the same no matter how many sales you generate.
• Examples: Wages, Rent, Overhead Costs (electricity, petrol,
telephone, water, garbage, etc.)
9. Develop Your Business Model
• Business Model - a company's plan for making a profit.
• Describes the rationale of how an organization creates,
delivers and captures value.
• Divided into 9 Parts.
• Customer Segments • Key Resources
• Value Propositions • Key Activities
• Channels • Key Partnerships
• Customer • Cost Structure.
Relationships
• Revenue Streams
Team - A group of individuals working together to achieve their goal.
• A diverse team of people who can contribute ideas helps a company

thrive
• Collaboration within a group can help solve difficult problems
• Creates a system to ensure that deadlines are met and that there's high
quality work
• Members of a team feel a strong sense of belonging and deep
commitment to each other and the common goal
T ogether TEAM is a coherent coalition of
E veryone individuals who work cooperatively
to accomplish common goals. A
A chieves team's characteristics include

collaborative action, in which teams
share responsibilities in addition to
M ore pursuing a shared objective.
1. FORMING
• Stage where a group of people comes together to
accomplish a shared purpose
• The leader plays a dominant role at this stage because
team members' roles and responsibilities aren’t yet
clear.
2. STORMING
• Disagreement are constant at this stage of development
since team members are still getting to know each other
• The leader’s role is to help the team get to know each
other
3. NORMING
• Members start to resolve their differences, appreciate
colleagues' strengths, and respect the authority of the
leader
• The leader shall ask for periodic updates from the team
and regularly check the team’s progress
4. PERFORMING
• The stage at which the real work of the team is progressing
• The leader shall help solve problems and provide input as
needed
4. ADJOURNING
• The adjournment stage is becoming even more frequent
with the advent of flexible organizations, which feature
temporary groups.
Belbin identified nine team roles and he categorized
those roles into three groups: Action Oriented,
People Oriented, and Thought Oriented. Each team
role is associated with typical behavioral and
interpersonal strengths. Belbin also defined
characteristic weaknesses that tend to accompany
each team role. He called the characteristic
weaknesses of team roles the "allowable"
weaknesses; as for any behavioral weakness, these
are areas to be aware of and potentially improve.
ACTION-ORIENTED ROLES
STRENGTH WEAKNESSES
Conscientious Excessively worried
and diligent and reluctant to
delegate work
Practical, reliable A bit inflexible and

and efficient close minded to new
ideas
Challenging, Easily provoked,

dynamic, and and may offend
thrives on pressure others
PEOPLE-ORIENTED ROLES
STRENGTH WEAKNESSES
Good at task Seen as
delegation and manipulative and
goal visualization work shy
Co-operative, Indecisive and tends

perceptive and to avoid
diplomatic confrontation
Outgoing and Might be overly

enthusiastic optimistic can
lost interest
THINKING-ORIENTED ROLES
STRENGTH WEAKNESSES
Innovative, creative, Ignore incidentals
problem-solving and and too pre-
free-thinking occupied to
communicate
Strategic and Lacks the drive,
objective. See ability to inspire and
judges fairly overly critical
Provide expertise, Only contribute

knowledge and on a narrow front
special skills
Norms are agreed-upon
guidelines for how things
should be done within a group
or team.
Norms are formed early in a

team's life and have a
significant impact on the team's
productivity, cohesiveness, and
success.
A team contract is an
agreement between you and
your teammates about how
your team will operate — a
set of conventions that you
plan to abide by.
(University of the City of Manila)
COLLEGE OF ENGINEERING AND TECHNOLOGY
CHEMICAL ENGINEERING DEPARTMENT
TECHNOPRENEURSHIP
To develop the qualities and approach
of an effective technopreneur.
In this era of technology, a
begins
their business with nothing but
with a brainstorming idea.
He identifies present
practices and assesses
some new ideas to do
something different.
A person who is engaged in
technopreneurship creates a
product or solution that uses
technological solutions to
change the way of doing something
in an orthodox way.
It improves how we have done

something before and how it has
to be done in the coming future.
MEANING, EXAMPLE, AND IMPORTANCE
FOUNDED ON 2009
Unique idea to call a cab
from any location through
the application and keep a
track of it through GPS.
Takes the taxi industry by

storm as it saves time of
people and an easy way to
book a car.
This is not a product
but a procedure of
synthesis to
improve and create
innovate the future
of a person, a nation,
and the globe as a
whole.
In this DIGITAL
WORLD, professional
development
programs,
as well as training, have
required to succeed
in a knowledge-based
society.
They produce various
strategic thinkers
who have the relevant
skills and talent to grab
success in a changing
global atmosphere
at a fast pace.
Property has achieved through technology
and accurate entrepreneurial skills.
Examples of successful technopreneurs:
BILL GATES
SERGY BRIN & JACK DORSEY
LARRY PAGE
Property has achieved through technology
and accurate entrepreneurial skills.
Examples of successful technopreneurs:
STEVE JOBS KEVIN SYSTROM

comprises identifying modern
technologies and even creation of
technological opportunities by
the presentation of commercial
Blanco (2007)
It is a blend of two words
The process of
technopreneurship is a
combination of technological
advancements and
entrepreneurial skills.
In the products and services

transformation, an integral
part of technopreneur is
technology.
This is a new breed in
the field of INTELLIGENT
entrepreneurship. INNOVATIVE
TECH-SAVVY
Technopreneurship
gets to the next level of APPETITE
success through PASSIONATE IN

CALCULATING
teamwork. RISK
“ TECHNOPRENEURS ARE ENTREPRENUERS
who start and manage their own technology business.
-Collins Dictionary “
The name originated from the year 1990s and a
blend of “TECHNO” and “ENTREPRENEUR” who
takes the calculated risks in the techy world.
The billion Elon Musk has been
regarded as a Tech Geeks, who is CEO
of SpaceX, PayPal, and Tesla
Known as a disrupture and he has

discarded the misconception that the
only best way to cut the business cost
is outsourcing.
Always rushing the group of

ELON MUSK technopreneurs who love to take
risks.
Bill Gates who is the founder and owner of the
award-winning firm of all time, Microsoft.
The film that has been made about Steve

Jobs named “Pirates of Silicon Valley” that
BILL GATES give him a title of technopreneur.
Biographical film about that man showcases the
real picture of the tech world that we have today.
Involves all the creative actions involved in the

building up of the global corporate empire, Steve
Jobs Apple Computer Corporation.
STEVE JOBS
It is interesting to get such great
technopreneurs at the same time. Both of
these companies competed with each other in
the past times on various events.
BILL GATES The battle of these computer and software

technology is appealing to watch.
STEVE JOBS
It makes easy for people to
stay in touch with each other
and come up with some
unpredictable products as well
as solutions that are beneficial
for the nation.
Provided some other benefits

to society and the nation that
contributes to economic and
human development.
1
When startup businesses, then there is an
increase in the pool of job
opportunities as they need manpower
to run all business operations.
In the same way, creates jobs and helps
the nation technopreneurshipto combat
the problem of unemployment. It
increases the employment rate of an
economy.
2
Various natural and productive resources
are available that every entrepreneur can
utilize for business success. The usage of
local resources increases its value and
reduces the rate of resource wastage.
3
A technopreneur can find out the business
opportunities and locate them in areas
that are suitable including remote areas.
4
By being a creative and innovative
technopreneur, they play an important
role in the field of utilization as well as
the development of technology.
5
An entrepreneur requires funds to start up and take
their business to the new heights. They take financial
assistance from the investors and financiers and
utilize the public savings that lead to economic
development.
6
The young generation gets a chance to work
with such technopreneurship firms and learn
nuts and bolts how to get success. It also
inspires these teammates and employees to
grow and start up their business firms too.
1. BUILD A TEAM
Technopreneurship is the combination of one’s
TECHNICAL EXPERTISE with
ENTREPRENEURIAL TALENT.
This is not a one-man show
and you always require
support to turn the idea
into reality.
2. BOOST PROBLEM-SOLVING SKILLS
Being a Technopreneur, you ought to
EXPECT TROUBLES AT EVERY TURN.
In the beginning, you may

tackle operational
changes, funding, and
regulatory obstacles.
2. BOOST PROBLEM-SOLVING SKILLS
Being a Technopreneur, you ought to
EXPECT TROUBLES AT EVERY TURN.
If you failed in the real
plan, you should pre-plan
with an alternative.
There is also a need to analyze the
cost, time, manpower, and resources
needed for various avenues.
3. DECISION ON THE FINAL STRATEGY
After getting an estimate of fors and againsts all
options, you have to PICK UP THE BEST STRATEGY
that is COST-EFFECTIVE as well as COMMERCIALLY
VIABLE.
Don’t baffle yourself by

changing your plans again
and again.
VIABLE.
The final stage is to
implement the idea such as
launch the product or service or
platform you have been putting
efforts on.
VIABLE.
Hard work is not the only thing
for being a technopreneurship
but it also needs the
determination to make a
certain idea work.
Technopreneurship acts as a new
breed in the field of entrepreneurship.
it includes individuals who are passionate,

innovative, and tech-savvy.
While the center of the stage is the technology
but it all results from an excellent idea.
Under technopreneurship, innovation is
the key to success, not invention.
It means to find out solutions for the
problems by utilizing technological resources.
Sometimes these ideas take a long time before
it becomes a competition in the marketplace.
Utilize that available time to build up as an
entrepreneur and boosts your technical
skills and expand your connections.
There are main areas on which a technopreneur need to
focus on as mentioned below:
the internet, life

services, electronics,
and biotech.
where the main

mission is
technology.
such as computer
hardware or devices.
4
WRAPPING UP
Technopreneurship is not a product but a procedure
to come up with human innovations with the help of
technology.
It is all about making improvements with the help of

technological advancements for an organization,
country as well as the globe.
It makes it easy for companies to develop, distribute,

store, process, and even access the information at a
cheap cost.
WRAPPING UP
A big advantage that we should never ignore is that
hitherto physical space covered with thousands of
papers and now, it is simple to store it as a
technological element.

Intro BusinessModels Merged

Uploaded by

Copyright:

Available Formats

Intro BusinessModels Merged

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Intro BusinessModels Merged

Uploaded by

Copyright:

Available Formats

PAMANTASAN NG LUNGSOD NG MAYNILA

University of the City of Manila

Competitive Market Analysis

Competitive Analysis Template

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

Understand your market

Spot industry trends

Set benchmarks for future growth

DIRECT COMPETITORS INDIRECT COMPETITORS

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

Do they operate in the same geographic area?

CREATING COMPETITIVE ADVANTAGE

80% of competition 20% of competitors

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

Articles (Online or Print)

CREATING COMPETITIVE ADVANTAGE

Reference Books and Databases

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

Disseminating and Evaluating and

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

KEY COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

PRODUCTS & SERVICES

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

Examples: Retail Stores,

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CREATING COMPETITIVE ADVANTAGE

CET 0411-1: TECHNOPRENEURSHIP

What is a Value Proposition?........................................................................................ 4

What a value proposition should be? ......................................................................... 5

Best Practices for Value Propositions .......................................................................... 6

Common Mistakes in a Value Proposition.................................................................. 7

Elements of an effective Value Proposition ................................................................ 8

Value Proposition Canvas ............................................................................................ 9

Value Proposition Development ................................................................................ 15

Value Proposition Templates ..................................................................................... 16

What is a Value Proposition?

A value proposition tells:

What does your company do?

Who are your target customers?

Why should they choose yours over your competitors?

What a value proposition should be?

A value proposition is not a slogan, tagline, or mission statement. Examples

Company name Tagline Value proposition

To bring inspiration and

“We help __ do _ by doing ___”