Re:How to Escape the Startup Trough of Sorrow
by dangus on Saturday September 16, 2023 @11:13PM
(#37541164)
In addition to the 4 Cs of marketing, I would look at Porter's 5 forces and make an industry analysis:
Competitive Rivalry
Supplier Power
Buyer Power
Threat of Substitution
Threat of New Entry
(There's also a sixth force, complementary products)
I think these also tie in nicely with an analysis of where the best profit pools exist within the value chain. Apple makes more profit selling an iPhone than Foxconn because its position in the value chain has a more favorable 5 forces situation: a much lower threat of substitution, lower supplier/buyer power, lower threat of new entry etc.
You can have great brand positioning and never make a dime. Example: Uber. A dominant brand with universal recognition, which has done nothing but lose money. They'll never make money because their supplier power, buyer power, and threat of substitution are impossibly high. They're caught between their suppliers' (drivers') price demands and their buyers' (riders') prices sensitivity.
Competitive Rivalry
Supplier Power
Buyer Power
Threat of Substitution
Threat of New Entry
(There's also a sixth force, complementary products)
I think these also tie in nicely with an analysis of where the best profit pools exist within the value chain. Apple makes more profit selling an iPhone than Foxconn because its position in the value chain has a more favorable 5 forces situation: a much lower threat of substitution, lower supplier/buyer power, lower threat of new entry etc.
You can have great brand positioning and never make a dime. Example: Uber. A dominant brand with universal recognition, which has done nothing but lose money. They'll never make money because their supplier power, buyer power, and threat of substitution are impossibly high. They're caught between their suppliers' (drivers') price demands and their buyers' (riders') prices sensitivity.