• Building a sustainable Competitive Advantage – one that is hard to copy and can endure over time – is the focus and reason an entrepreneur takes the time to complete a thorough assessment of the environment
• An entrepreneur adds value to a product or service by providing a benefit (or set of benefits) that the customers want and aren’t getting from their current provider. This is how we differentiate our product/service from the competition and establish a Competitive Advantage
• The environment in which we compete has a great impact on our ability to develop and sustain a C.A.
• Porter’s “Five Forces” is one of the most important scanning models to use when assessing the industrial or “macro” environment
• The “micro” or “community” analysis, which determines the target market for your particular product or service, considers a group of critically important variables related to the success or failure of the venture. Getting the target market wrong can cause failure very quickly Outline:
1. Explain the importance of examining the internal and external environmental forces as they relate to a businesses’ ability to successfully compete
2. Define and be able to discuss the Competitive Advantage concept, and explain why it is critical to a successful business. Include discussion related to the product life cycle and the sustainability of the C.A. over time
3. Discuss the Environmental Assessment process, including the three areas of interest to a new business
4. Describe the General Environmental assessment; what it includes, why it’s important, and the goal of this process
5. Describe the Industry Environmental assessment process, including a detailed discussion of Michael Porter’s work on the “Five Forces” affecting a businesses’ ability to compete
6. Explain the Community Analysis process, or the “Micro” viewpoint. Include discussion on the selection of a Target Market and the different variables used to make a valid determination of the businesses’ customer group