Mapping Competitive Position

In the article “Mapping Your Competitive Position”, Richard A. D’Aveni introduces a tool for thinking about a competitive strategy for a company. The model bases on gathering data from the market on different products, defining the key features that play key role in price formation and thus help recognize the market structure.

D’Aveni advices to look the market situation through setting products on a price-benefit scale. Plotting product offering on such scale makes it easy to see how the market looks to customers. Many times focus groups or customer interviews do not tell the truth as the respondents might say other what they do or do not know about the market enough.

A very interesting example is shown from the restaurant market of NY, where it was seen that customer experience explained 73% of the variations in price as cuisine accounted for only 3,5% and location 2,5%.

Apple’s iPod price-benefit strategy also shows how smart they have played in the market carrying devices in all product categories to fulfill consumer needs and outplay competitors.

The interesting facts of the model lie in the image it can give about markets and the use of it in being ready for future in terms of competitors positions, development and means for outplaying competitors.

I think this is an article I will put in my library for getting further knowledge on the subject as I find this very useful when for example investigating possible market opportunities and business ideas. Thinking about the market and structuring it correctly before entry is in key role when starting a business and forming its strategy. I bet this tool will make it easier to prepare for challenges and changing market.

My Idea – Refined

In the first session of MBL I pitched about my idea of a mobile application for carpooling. The basic idea is simple: drivers with cars give lifts to passengers in a need of transportation against a small fee. Application works as a platform that connects drivers and passengers. Drivers and passengers both need to create public profiles so that they can be recognized by others. Drivers set up their routes, time schedules and rates into the software. Passengers can apply to routes via the application. Drivers can then view the profiles of applicants and approve which passengers to pick up along the way. Passengers and drivers could also recommend others and comment on how the service works with each other. The problems that would need more investigation include the Finnish law regarding to taxis, and safety of the users of the service. The service would offer an easy-to-use interface, making it easier for passengers to travel short and long distances, save in emissions and offer a way for drivers to save in gas expenses. Thus, it would provide benefits for all stakeholders involved.

Manual of Me

As it was an interesting start for the program in the beginning sessions last Friday, we got to go through some great themes. One of the subjects was the Foursight analysis, which I believe, was beneficial to all of us and for the program.

I analyzed myself to score 3 as being a clarifier, 5 as an ideator, 2 as a developer and 3,5 as an implementer. According to Foursight, scoring high in ideator and implementer points refer to a profile called “Driver”, meaning that they “play with lots of possibilities, and when the spirit moves, they leap to action”.

"Driver"

I can recognize myself to a great extent from the description that Foursight gives. I usually have a lot of ideas which I bounce back and forth a little. When I am motivated about an idea there is no trouble at all in implementing it. Though lack of motivation decreases my will to implement. As it is suggested for drivers to spend a little more time with facts and refining ideas, I think it is worth taking the hint.

Even though I think I am quite patient by nature, it might not be true with some ideas. I may not always have the patience to wait for something that I am already motivated to implement.

As knowing my Foursight -profile, I think it is good if others give some space to my ideas and not to mind if I fly high with my ideas sometimes. Though I appreciate others pointing out realistic facts that I need to consider. It is not easy to anger me and I can take and like to get feedback, so commenting on my ideas and their features is always positive and welcome.

Beginning MBL

It was great to meet our new MBL team last Friday. Especially interesting it was to see how an innovative, idea rich and active our group seems to be. I bet it is going to be an exciting year with media and all implications related to it!