Exercise 1

Exercise 1 - Exercise 1 QuickScreen Criterion I. Market and...

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Exercise 1 QuickScreen I. Market and Margin-Related Issues Criterion Higher Potential Low Potential Need/ Want/ Problem/ Pain Point Identified Unfocused Customers Reachable and receptive Unreachable/loyal to others Payback to users Less than one year More than three years Value added or created IRR 40%+ IRR less than 20% Market size $50 million - $100 million Less than $10 million or $1+ billion Market growth rate More than 20% Less than 20%, contracting Gross margin More than 40% and durable Less than 20% and fragile Overall Potential: 1. Market Higher Average Lower 2. Margins Higher Average Lower II. Competitive Advantages: Relative to the Current and Evolving Set of Competitors Higher Potential Low Potential Fixed and Variable Costs Lowest Highest Degree of control Stronger Weaker Prices and cost Channels of supply & distribution Barriers to competitors’ entry Can create Weak/None Proprietary advantage Defensible None Lead time advantage (product, Slow competition None technology, people, resources,
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Exercise 1 - Exercise 1 QuickScreen Criterion I. Market and...

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