Kika Keyboard Business - PowerPoint Presentation

Slide1

Kika

Keyboard

Business

Plans &

Business

Models

Learning

Objectives

Identify the critical roles of marketing research, competitive analysis, consumer-value proposition, and market-entry strategy in the development of a business planCritically analyse the role of market research and business planning in running a successful enterprise

What is a Business Plans

A business plan is an persuasive document that aims to convince its reader to invest money in a company or a project. The plan must answers the following questions:

Who are you (legal structure, ownership, location, etc.)?

What do you sell (product, service)?Who do you sell to (customers)?How do you sell (distribution channels, marketing plan

)?Who is the competition?What is the roadmap (milestones, timetable)?How is it made (manufacturing process, suppliers, technology, etc.)?what are the funding requirements (amount, source of financing)?what is the expected return on investment (cash flow forecast

)?

Discussion

Questions

How do you design a business plan？What components do a business plan involve？

Theory

Basis: Business model based on Internet

Business model:Each firm that exploits the Internet should have an Internet business model—how it plans to make money long term using the Internet

This is a set of Internet-and non-Internet–related activities—that allows a firm to make money using the Internet and to keep the money comingThe profit site to enter, what value to offer customers, which customers to provide the value to, how to price the value, who to charge for it, what strategies to undertake in providing the value, how to provide that value

Business Models & Business Plans

A business model needs to answer:

The profit site to enterwhat value to offer customers

which customers to provide the value tohow to price the valuewho to charge for it

what strategies to undertake in providing the value how to provide that ValueFinally form the business plan

Business Model Map

Business Model

Profit Site

Customer ValueScopePriceRevenue SourcesConnected Activities

ImplementationCapabilitiesSustainabilityCost StructureInternet

Environment

Performance

Afuah

and

Tucci

(2003)

Profit

Site

A firm’s profit site is its location in a value configuration vis-a-vis its suppliers, customers, rivals, potential new entrants and substitutesA firm’s profit site determines the competitive pressures from rivals, suppliers, customers, potential new entrants, and substitutes

Customer Value Proposition

Customers

normally buy a product from a firm only if the product offers them something that a competitors’ product does notThe most common value strategies are:

A differentiated product/service focusA low cost products/service focus

Scope

Scope is about the market segments or geographic areas to which the value should be offered as well as how many types of products should be

soldA firm’s task of making decisions on scope is not limited to the choice of market segmentA firm must also decide how much of the needs of the segment it can profitably

serveThe Internet makes geographic expansion a great deal more feasible than in the bricks-and-mortar world

Revenue

Sources

The sources of a firm’s revenues and profitsIn the bricks-and-mortar worldMany firms receive their revenue sources directly from the products they sell.

Others receive their revenues from selling products and servicing them, with a larger share of their profits coming from the service.With the Internet, its properties of mediating and network externalitiesThe mediating property suggests that the revenue model of radio, print, and television media provides useful information for the revenue source of Internet

Connected Activities

To deliver value to different customers, a firm must perform a series of the activities that underpin the

valueWhich Activities need to be Performed?First, the activities should be consistent with the value that the firm is offering

Second, the activities should reinforce each otherThird, the activities should take advantage of industry success drivers Fourth, the activities should take advantage of any distinctive capabilities that a firm may have or that it can build

Finally, the activities should be geared toward making the industry more attractive to the firm

Implementation

Implementation is to carry out the decisions concerning what value to offer customers, which customers to offer this value to, how to price it, and what activities need to be

performedImplementation shows the relationships between strategy, structure, systems, people, and environment

Capabilities

Resource:

Intangible resource and tangible resourceCompetencies:The ability or capacity of a firm to turn its resources into customer value and profits is usually called a capability or

competenceA core competence must make an unusually high contribution to the value that customers perceiveCompetitive advantage:A firm’s core competencies allow it to have a competitive advantage because they allow the firm to offer its customers better value than

competitorsFirst, it may be difficult to replicate the historical context in which the capabilities were developedSecond, it may take time to develop these capabilitiesThird, it may be very difficult at first to identify the core competence and even more difficult to find out how to copy it

Sustainability

How to maintain the competitive

advantageThree generic strategies: Block strategy Run strategy Team-up strategy

Case study: KIKA

Keyboard

KIKA is now focusing on "the next generation keyboard” for mobile phone aiming at the international marketKIKA was launched on December 2014. And it has been applied by 50,000,000 users in more than 140 countries now

The company’s CEO, Hu Xinyong, has worked for 2 international companies, one was called Skymobi, the other was Tom.com. KIKA is his first start-up

Case study: KIKA

Keyboard

In their own words:I think there are 2 things that can contribute to human development. One is input, the other is output. What we are concentrating on is the output. All in all, our mission is to make the world betterThe first one, which is also the core of a company, is great dream. We find that Chinese entrepreneurs are not good at expressing themselves and their great dream, while American entrepreneurs are good at that. The second point to be a great company is that the company should keep its promises. If a company is driven by great dream and keeps promises as well, the company can grow

larger

Pre-Video

Discussion

What should a business plan consider？ What would you consider to be the core skills needed to start a successful business?

Video

Embed/show video

Case Study Discussion

Questions

Draw the business model map for Kika keyboardWhat is the consumer-value proposition of Kika

keyboard?How does Kika conduct their marketing research?Hoes does Kika

consider its competitors?What is the main strategy of Kika to maintain its competitive advantage?

References

Afuah

, A., Tucci, C.L. (2003) Internet Business Models and Strategies: text and Cases, The McGraw-Hill Companies.