1. How To….Evaluate Industry, Market and Competition
10/3/2017
How To….Evaluate Industry, Market and Competition
Aziz Makhani, Certified Business Advisor Washington Small Business Development Center Jan 4, 2016

2. OC How To Series… Sep: Commercialization Overview
10/3/2017
OC How To Series…
Sep: Commercialization Overview
Oct 6: Protect Intellectual Property
Nov 6: Corporate Structure for Startups
Dec 3: Business Plan

3. OC How To Series… Jan 21: Finance a Startup
10/3/2017
OC How To Series…
Jan 21: Finance a Startup
Feb 4: Evaluate Industry, Market and Competition
Mar 3 and Apr 7: WSU Commercialization Successes

4. Agenda About SBDC Steps to Evaluation: RCA
10/3/2017
Agenda
About SBDC
Steps to Evaluation: RCA
Industry, Market and Competion
Q & A

5. Agenda
The Washington SBDC is a partnership between and funded by the U.S. Small Business Administration, Washington State University and other Washington Institutions of higher education and economic development organizations.

6. Washington SBDC Centers

7. Topics we address Financial and Cost Analysis Business Valuation
Buying or Selling a Business
Loan Packages
Marketing
Personnel and Management Issues
Business Plan Review
Strategic Planning
Government Contracting
Leasing
Ecommerce
Exporting

8. Three Steps
Rceahers
Ceoaltl
Azleayn

9. Three Steps
Research
Collate
Analyze

10. Business Model

11. Group of target customers
What is?
Business you are in
Group of target customers
Market
Industry

12. Why research and what should I look for?
Evaluate overall relevance
Determine potential profits
Examine internal forces

14. Industry Analysis Threat of Entry – Barriers to Entry
Intensity of Rivalry Among Existing Competitors
Pressure from Substitute Products
Bargaining Power of Buyers
Bargaining Power of Suppliers

15. Threat of Entry Economies of Scale Product Differentiation
Capital Requirement
Switching Costs
Access to Distribution Channels
Government Policy

16. Industry Analysis – Oreck Corporation
Founded 1963; Bankruptcy: 2013
Lessons Learned:
Retail Brick and Mortar Distribution
Domestic Manufacturing
Marketing by the CEO

17. Market Analysis Information about your target market
Distinguishing characteristics
How much market share can you gain?
Pricing and Gross Margin targets

18. Competitive Analysis Market Share Strengths and Weaknesses
How important is your target market to your competitors?
Are there indirect or secondary competitors?

19. Competitive Analysis – Main Competitors
Main competitors small to medium sized players; established presence in the market.
Major threat from Company ABC best positioned to compete with largest market share (at 20%).  

20. Competitive Analysis – Products and Services
The closest resemblance to our own product comes from Company 2, because their scale of operation and sales force is similar to our own.
Unfortunately the product that is best positioned in the market is that from Company ABC.

21. Web Resources

22. Additional Resources
Competitive Strategy: Techniques for analyzing Industries and Competition
Michael E. Porter, 1980
The Startup Owner’s Manual
Steve Blank and Bob Dorf, 2012
The Wall Street Journal Small Business Guidebook
Colleen Debaise, 2009

23. Additional Resources, cont’d
Small Business Bible
Steven D. Strauss, Third Edition

25. Thank you! Mark Deming, Brand Manager Northwest River Supply
Moscow, ID
Aziz Makhani, Certified Business Advisor
Washington Small Business Development Center
Pullman, WA

26. 10/3/2017
Thank you!