EIP: Week Six
In this week, we look at how the unique competitive advantage of the venture can be articulated as well as at customer acquisition dynamics, which are essential for entrepreneurial success.
The first task is for student teams to define the core of their value proposition—the aspect of the business that they do better than anyone else and that is difficult for competitors to replicate. This could be a network effect, a deep technical core, unique supply chains, a distribution monopoly, or proprietary data. The core differentiates the value proposition and strengthens over time, so it is crucial to maintain focus on and protect it as the foundation of the competitive advantage of the company.
To chart their competitive position, teams will be asked to visualise where they stand relative to competitors from the standpoint of the customer. Customers care about how solutions align with their needs, and it is important to consider competitor propositions and the "do nothing" option for the customer.
Understanding the customer’s Decision-Making Unit (DMU) is crucial for mapping out how they acquire a product. Identifying and analysing the roles of the 'champion', end user, and primary economic buyer, alongside influencers and decision-makers helps us evaluate the cost of customer acquisition and designing an effective sales process.
Based on this understanding, teams will begin to mapping the customer acquisition process, which is essential for identifying the sales cycle and potential bottlenecks. It covers every step from initial contact to final purchase, including budget considerations and decision timelines. This process helps structure the sales funnel and identifying triggers that open windows of opportunity, such as seasonality or regulatory changes.
In a final step, project teams will calculate the Total Addressable Market (TAM) for follow-on markets, which needs to be large enough to ensure long-term growth beyond the initial beachhead. This involves assessing potential revenues from adjacent markets or upselling within the existing customer base in order to achieve substantial market capture.
To equip students with a basic understanding on how their assets can be protected, this week will also involve a guest lecture on Intellectual Property.