what went
WAONG? What Seenay Has Learned the Hard Way
ovmservay.com
The Syeay HT a wosnhee, tang ran
pertain deve tet const pamanily of st oft
harbors on op of wo ds wheel Tere ae no
‘his ovale mecha wodings. Rulers ea For.
ward t move foward and tad fo move Backer
Turning i de mechanical va hand cortrle The
eves rein by eet, norgaluing eee meter:
fn can tol to 10 mle pr how The nae
“Segway HT stan for “Seq aman Mansoor”
“he Seguay was invoiced to the makeplce
December 2001 by Daan Kanan the errs wh
Invented the prod. Thee war considera secrecy
and ype leading tothe todicton Thea a
tin othe dence was ents, Ventre capa
John Door predicted bat ae ofthe Segway would
‘each $1 billn scone han anyother produc in US
aslo. Aes CEO Stove eb fect tat es woud
‘bebottaound ths ne form of anspor, Ta cope
th the expected demand fr te prod, Segoray’s
factory in Bears, New Hampsre, was designed 0
bul to 49.000 unts per month ysl wee
targeted at betwee 10,000 and 50,00 uns daring
‘he fe 12 mont, But after 21 mths, ony 6.000,
Uns had so What want wrong?
‘A tuned out, sera hg went wong hen t
came to saing the Segway Fe, he itl pie of he
roc ws 9.00, whch put out fred or many,
amaumer Seed, deste fe tecagilprome t
ast cer what eed he Segway afl, was est
suited fr densely populated ares whee people coud
‘ie th Segnays wor, Bt te tales a Sen
Frenosco aha Manratan, mst ariuet people Ine
sburban as making ring aS to work reac:
‘i natn, kw ance dng a Seay
wa, shoo shop wou wrk ter both ands
pate Segoe So, hw woul nese,
cay a befease or 2 student cary books? Fray,
Seaways sold on Amzoncom and hough other
ect carnal Toe a a fe Seqway dees catered
‘220s he Usted Sites but not many. Ae ea ey
en people can ste or wt a Seo The ak 2
oc deler network abi made pele wonder where
‘hey would ge the Seaways sec ifthe ha weble
‘eau sil buns, ut he copay onl &
‘oso of wht thopad a bam pr he cme
dwn to aroun $5,00, and hrs ae no over 200
Sony eles. Ther soup of Sogwayenthusass
that low the roduc, and Sagways se used in some
fectoves, outst areas, and thera parks, The United
States Postal Seve, 8 large potental market fer
Segway tested the dee or se by lcs ho
sil deer al by foot. The posal sre ebondoned
‘he den afte al aris cmplaned hat they cout
ser lord an untvela hse opting a Seg,
‘Questions for critical Thinking <
1. As we've sain thi chapter, exestion intligence
ictal to enrepencual sucess How dim
atonal sort for Seay? What esos, oar
‘than thse aren) mene et poor ale of
the Segway?
2. Wy do you think wat ean Kamen a i tao
rt do abeter bof arcing he probes
‘hat bese the Seu? What woul ou hve
ine ferry to acne, anc, hep
NeSteaton tothe Sequay?
3 Diss Segway vie proposition Di eau
live sult vate ot $8,000 eke —
4 Doyow think the Segway wi evr all me
svean masts? What ice markets ty do
you tink are th most arming fe Seqwayt
ii
dicobbatoniel
Some: gn hw ay vn a
20: Wp "Seety Heady NG
indecent
{wasn about mating money. was never shot going bli want
hot cen of wealth The west a tepals
ghey compar. 1
suppose fT was «eat mts at maybe T ld
sy the guia wes spat per maybe | mol goo oa, at ant
a the gui andy gl une poy Ror So what hin ent
Seder canis, wht youd ido wha you Jet Ad tht
smuje wit Ido esti
Sr nd operteinformaionehocng itaCQuerent 9 WiRoDUCKONTORMTEMNELRSHE 4B
BE Uinsscin (ena eitcuiore) a
Working Together: How Biotech Firms and Large Drug
‘Companies Bring Pharmaceutical Products to Market
by
‘feet roles bsines and scely and can aten oan or soing ta pert otected ccovares
protien the best results by parnrng with each hala compares by parang with Ue rs
aera tha acta edveeres The phamacay’ _tevenuessanng wey The hpe sce conpenos ake
‘ea dusty an excelet enzo how his works, tony by aang a eects cancers,
‘is weitknown tat bares to ety ine phame” "The most competing partnersap argement ee
aucal cy ehh The average nw prot kes tho tat hp enteral foca oe what fey
[nteeen 10 and 16 years fom cgrowy te carsmarcsl do bes wnch le tyes Prenat a te ale
sie. The process of aiscoverng, etna, staning then ap nto the parts com play songs
feproval manufacturing, ed maratrg new ug ie andissou,
lengand expensive. How than, co boleh sreaperihe
Te Te ase tha fo cach ay ak te
[= firs and smalr enbepreveural fms play Bote fms earn money trough is arangement
Pouce mara He's how were oy
Bosh rms soscalze in dcorsing and patenting QUeStions for Critical Thinking
te rugs we theyre good st. nmost cases, Pew”, In your opin at ator fe business
emacs haga 36 Woah een
themselves in this ight, believing they are more “ales” than others ° Alertness
fs langety a learned sl and people who have mare knowhsige ofan ares tend
to bemore set to opportunies that sres than others. A computer engineer,
for exemple, wou be more alert to needs ane opportnities Wathin the
computer industry than a lawyer would be
"The research findings on enveprencurial alertness are mixed. Some
researchers conslude that alrtnss goes beyond noticing tangs and anolees 8
Inore purocul effort’! Far cxapl, one scholar bebeves hat the crucial ier
te belween opportunity ders (ea entrepreneur} and nonnders i thet rele
tie esonesment ofthe maestpace ln other rds, eneprenears may be bel
tan others a sing up the marketplace and inferang the ely mpleaions.Mia
What Went WRONG?
Sounds ke ood ie. Yee replacing your ato
Somer wit naw an, bounce apt
‘roan shoud be worth samathing, Yeu eto
Eoin aay bu dont wart haste wih ath up
fs). sr etapa ing oe
ston, Theatre toate the laptop to 29
{Bay dopo eam uric lal yur apo tx you.
(cr ebay’ You'l then ptm choo eas @ commission
{akan bythe store,
inthe mi 2000 a mamber ot eBay dopo
stad to do ust is, Nopesstnt 20, by 2208
there ware thous of nsepandent and rnchise
[ay Drop-OF Stores sees amare, today. nya
Fendt aman What wet wang?
“Sp ny eof tree ase pean
Ly two sanction ganzstene Sat ard GuEKDIO.
‘tong the tea mace sara to many—thoe were
2,000 crop sores by mc 2005~ahepis cha
toned ra easy or thabegimang Tre he ofthe
‘hop-ofsre dea at oa ervey ee ete
{fing tha lose or garage thy Sooo on a.
So tho mmaata most urine, Bit the seeps
‘rerdeeed how auch "quay mereharise wou
{SSLS5) cure in ow ha to rage an auton
{or $600 laptop and anath to manage oe fr =
‘obassbal eat Win cominsens he 40 peso
‘ange fat what he stores were gata, wat wos
now aly fo come twas say To even come
{he the sepoe matin, tng to ames,
Smoot gong to eu 0 part fy 8600 pty
Comput 6240, mage he sucon yea" wre
{he samo prcon ma lay ve wn 40 pace ofa
‘S20 basval cond boosts te tata amour of anes
‘vowel fot fst much We pe of tne ws
pee he dos af tae woud be stick sang 4
figs arcu often teet ore rtor han Mahe
Produc Aner ting tne sepsis qustoned was
‘Cole the sate sors oune’s be Sepa maraging
futons Yor lomo rings, bese card, Do,
‘amor, computes, daoartve plats, ae photos,
Ghd course cer binge? One oft pias a
‘Shop storoe made was tat they wou ep ther
‘Sens koow wtf pea was forth Rem ey
Frat a
"Regret, ny of he skepics' woes ea
tru. Literals hanes of say dopo stor ate
‘ove The ma comely tho Sere aero
fave calf qu thar prof meine re
‘te enact! a oa Tey spy deal wh oo
‘nary "one-tne sala and one ofa tnd ter 2
‘Sov a caaance of rapt! business an eet
preemie. Thy deo ou a th cost of presi
‘Stam was ho came wheter ewes 8 $80 doce
‘eBay Drop-Off Stores: How Feasible Were They?
ato or $15;00boatraccsig each te hc
{ang to.0 customer fesouching spew, taing 2
‘ot, wring a deseo, post he ter on oy,
{otewing th actin sien the rouse bet
‘etng py ney na pay tw osteo
Irach money woud bat ove fers 40 pereot con
reson na $30 decorate pt tal a
“Thee are now many degraniog former eBay
crop store amare The is! caps lay ard
Soming casts fora rachise eo Sole ae
‘betwen $0,000 end $160,000, One fore oumer
‘Stan Suki ranch, Koren Mein 0 mee at
She snd har pan aintan «Vs se, Asa On)
(Ora? wwatamitneaiyone. or) o provide udates
Show say cop-of store probes: Wit feat
{0 anty te oman onthe te doos wusato
how high ematiane te ening regarding tha oB2y
‘lop-of store concept GulckOrop, ona of the
Panos of te eBay drop-ft store Indust, closed
hop meaty 2003 an stopped ling Fanci are
Sporting etn neh
tate lot There sto st Bay crop of tres in
ssietonen, a uaa by thai moo ee ete
rumors are smal corre to erga! projortns.
[one tine iol haa estions to open 3,000
‘Sores inthe Usted States and ve overseas, Al
‘dome stoves ted ons WED Sto
{Questions for Critical Thinking
1. How mary owas of ay crop af tres do you
th santa easy sate hy
pared ar res? you nk tember fom,
2, Boson tenon atone sy opt
‘Soon ea ida a a at seas et
foal weig an eer om
2. Und you ink pale Dough int sy cop
se oven en oft our ape fe
sategon?
4 at on asta yp aan fron te ecarancs ot
Ihe eday dopo store eth about De par
tate of sab ares?
pehceaenspemmeen
eee ene:
Ceara a
ieee are
eerie! senna mace
ees Seamer ras
ShotsCL) faa
Company: InstyMeds
ob: wn insiymeds.com
‘ttar InstyNeds
Facebook InstyMede
Business loa: Provide pation ascot to prosersten
-modeatons instant after oye prscrond bye dootr
Flafespal amorgencyfeom or at an ugert cae cer
‘The prcuptons ae ceperced va wenang machine
‘Pats preont nt oly.
Pitch: There aro many ral ares without 24-hour
Darmscee Te make kent for peep who vl an
[Sregeney com oan uence cori It tig or
fnameskan to ql it rsaptons.Typesy ot
‘hare, wo want to have one seca "0 red
‘stone hata dotnet il make felt
re cases, dcirs wi go patie asartorquanty of
‘modest, they snow pat wl ol Baa
{ettoa panna soon St tow a in prose ve
{is soon Fe cosy rte cocks op Nowa.
‘Second ality seearo hat the peter wk the
‘tartar medina, tat fang ete and neve hae
the preoorption ed Te aves pas who Sted cat
vith trois, fr eae, susp to pneenis
‘hy rs a eget ttn a
IratyMeds provides soiton 10 these problems. The
{onary his Galop vena teen oer
‘on args, tobe loeatod in hospi and gent cate
Canons Heres how f wort, I Sowve pat rece
froecrton Fem «doctor at an aranoy room eh
Uigort ca canter that rasan istics machina Your
esr wil to accompanied by an ns eds vata
frae. You approach the mated machine (whch
‘eeamisoe an AM) ont eter the code Th ns
‘Prompts than od you tough he recess. you have
SOE iy Pa oar
CHAPTERS 9 PEASY AMALSS 125
reraco, ayes wacker your srance eran
tl deere the cory fer yous presen. Yeu
‘Drath surance, hayes! aetie sows Yo
ay wtheasn or crit ca Felony pajent yourgres
Eroten wl tan oe aspenaca tog doer wore or
‘tpensiptone fe thowe tal on to be rangers bok
‘oss include the 100 so mst common meseatons
rosea by emery een sd agent ae pc,
Fie partes qucctra, sachs mane as
Phone tet cy conrei the pn a thle a
ater vere lensed aac ar on ky
‘he, stro of nt Meds operations cece 8 “wh
ww auton rbot ates aed his ri part
ro facie Te tacos whee the machines re
preset urea reome hy poco. Heep as
ea ctr havea tha pales woe
Seen he ml of he ax. wth a phase Nowy,
Sa he etyeds mactinota evo the wa ne oe
normaly experiences at a pharnacy. The styles
rractire fe comected (the Wire, wi
FatyMadsheadqurers cain mediators need to
So rplonishs of thew oe ary meses present
tne tobe repnced du to narg expeaion Sate.
QA Bs cn th mtr cove inthis hap, what
‘uosons would jou sok the is eandrs ble
our hnding cen? Wed rowers wel ste you?
Dcison: it you nat to make your cei an just he
Iormatonprodod nse pth and on the corears
Web ate, wou you tund tha company? Wy er why not?
Company: CADI Scientific—SmartSense
Webs wnn.cad.com.s9
Facebook: CADI Selene
Business Kea: Prectce andl th et wclss patent
‘montoring sytem, ehendng pator’ a eomaousy
rescuing ‘tal medica ‘ata ard anemiing te
Fron o heath practtones.
Pitch: Monitoring a sick patant can bo 2 deeate
Blrcing act. though they need itrupte soap
{oid ther recovery, Maen St mat sla tau
heck ana such 8 ampere ane toad
Sectalons.
Four empress carts hve came up wt 9s
‘ona wiloss gadget cad SrariSego, wich foe
borg used Peeps Srgapee, Sango, Tape,
fltha lle Eas. The 12h we SmatSanets impossible fr frm to iden alts direct andl mdirect competion,
let alone tts future competitors. However identifying is top § to 10 direct
‘competitors and its top 6 to 10 meet and future compere makes easier
fer the Bem to complete ts competitive analyse grt
Iva firm does not have a direct compelitor it shold forget thatthe status
quo can be the toughest competitor af all In general, people ae resistant to
ange and ean always keep thelr money father than spend i" A product
service's utliy must rise above ts cost, not only sn monary tems bt leo In
Terms of the hassles sesoctated with switching or learning something new, (2
motiate someone to buy a new product or service
Creating meaningful value and sharp differentiation from competitors are
factions small rms in crowded industries can fake to remain competitive and
{gun market chare. Three frm that fave sccesfl acconpliaied thi are pro
fled inthe Saryy Entrepreneurial Fem entre
J NAPS Ava UAE SL
91
‘Thriving in a Crowded Industry by Creating Meaningful
Value and Differentiation from Competitors
Homettade Pizza Company: Wot win homeradepza com Tt HomeltadePeziC>
‘Hot iam: ics wy: shopmame.com: Rll: Hot Maa; Facebook Hot Mam
< Habu: Wet: wv om; Tita Hl Dave Facebook Jib
75 do wel a crowded indy whan te cone
ext (1) they create mearingel tlie for
‘ustorers at 8 Ta ioe and (2) tay ately
Aiteentate temashee orm compas, fac
‘arnizng the impact f trae of Portes five forces
essay on tose actors. Aim abe to withstand
tray sang exsig fee ana abe te dr sub
{ues and new omttants by createg value for te
"users aed erg something tat pele ca get
jane le,
"me folowing 2 exarpies of thee basnscas thet
fae creating unique valve thaw ingustag and aa
Gffrentated Pemsoives tro tok eompattors Each
ot these compari a
HomeMade Picea Company
1907 when fe Fosse tls hi tamil and frends
in"chicago, they probably thought he was eazy
oicusy, haw many pizza delivery sonices do You
‘hk aleady onto in Cheaga? Yt Fosse ha Row
Issa, He paras woutd be mad to srr snc davered,
Ft ia tho ofr, butathe than deveing the pees
fot and reasyto-at, Ne lzzaa would be Severed
Uncooked and unboxed. Customs would sid the
‘za which came heatable parchment paper, lo
thal ovens at 425 degroes and in 10 to 15 minutes
havea tech pra. Th scvartage the ptza wel be
fled wan woah lngediets and woud be piping hot
trom the oven
“ound ump twain. Fos cnet chore,
he than Glsng plz os row way, Rest Pate
frisang a cough esos ra waarolecuk storms oh
tae tet, Te got he tees ecers ponnble, he
mary work ith ina! farms to au prose,
‘ong wh pez, Hemahado Pezs Company ko makes
‘re doors sia saa and cocoa, Ne prods
‘eprom pred A ago vepie za wih mutate
fep rev otor, ad 2 we of ponte papper a eh
utero coe upward S100.
omeMace Pizza hs corppary-owned tors and
‘ranch lations in oar noosa, Minne,
.G igi, and New Yoriiew darcy. apart 10
be profane and gown,
eens clog? Ad tak
‘Doct The compettanase of indy cent ote
Hot Mama founde/0€0 Megan Teme. in November
200s, Tre and harhusban keegan the rt Hot
‘Mama doting boutaue ea, eal, tut of
Mimeapol Sic then ho company has expands
ot Mara cpened sinew stares in 2010, bingy the
(coming192 _pl@r2 m DRVELOPNa suOCSSFUL AUONESS IDEAS
total to 17 locations in saven stees. Tha company
Plamnod to ostabteh et lost 18 aon stows 2011
na 2012
‘Wats decent about Hot Mama th aye of be
soe and the prosuct selection, ts a store Hats
‘Seagnos special or meter 9 hop thera
‘hidron in tow Each icalon enetains Ids wih
‘movies, tos, video games, and olng books, al
{onal loeaed 80 mothers can Kap an eye on a
i, Every aise is wide ough 0 accommodate &
‘worse sale, sd the fare are mde so oles
Gor ot ck Sen evar le a ayaa,
‘The gels to lve moms sal snout of akong
aan the mit fa hace dy ot srappar ty
[ithe alove mora than en Hour Glen employee a
Specialy tamed to hee mother tnd dotoe tat
‘ser ey a eroprart have isthad a baby, of have
‘ier chiro I egard to ealco, the tora eatre
product fom mor an 200 bande
ot Manas reve is exact i top $20 milo a
ott anda company plas have 0 locators by 204
Haber,
eater ough eck mens si, Food 2007,
“bur repress BDc00 sits 2010 out &
ver ude nd sgn acres
“bu was stated by Veer Fath ar Hi Os,
‘wo men who saw shopping ae a chore The campy
‘ploy a dec eles ade sini 9 aie Perpeed
(Gat The companys 650 part eae ede aes
fsa cammosere of up'625 pcan one cating ay
S91 Most so saveer ere wonen of schookaped
chien eoing frente neem. Ones a ait rere,
Iesentto a acer near Mocos, Chine wrote ae
‘rman fete ands ready into vee weeks Sits
‘oa btyaon 9 and Ste, Wha hat may sau ee
toh oc than hal th poo of comparable nits
Fiend tors,
"Accor to J. bur, som $0,000 people have
boot clothing oF accesses from tho company. and
89 pert of ts customs reo Sina be come
as founded sales have pled each you ana topped
SBrnibonin 201
‘Questions for Critical Thinking
Samearas nth fst? How ao tous ses
nape companies vein cane congas
2 Inwhat ways ar ech copay’ oar redeting
fhecmoneeaxpanence ner nauses?
2 Gta tae companies ented, wich ane ou
‘nn has tho most peter rama comet?
tric cerry o ou tink he mae vores o
Ireeased eompation rom carpets? Exc yout
4 Froan stare of nother company that
‘shah ampere, le company
{ndlecem wnt ste apart carpe
Sac Sheet oe es Caran howe
Steermmasp hens Mir 3 Oy Senha
‘Sheer nen eater geen oe
Foto, iaronn con monn? sare
‘Snel poe uh 3 20% plenty
Senta nn et 1S Bony
Sources of Competitive Intelligence
‘To complete a meaningful competitive analyse gid, a frm must frst under.
veamanc onsenvE
8. tbe
‘ant
compa e
stand ‘he strategies and behaviors of ts competitors, The information that
{zaherad by afirm to learn about its competitors is referred to as competitive
{ntelligenee, Obiaining sound competitive inteligence is not aways 4 simple
ask, Ifa competitor Is a publicly traded firm, a description of the firms
se and its financial information ts available through snmusl reports
fled with the Securities and Rxchange Commission (SEC). These reports
are public records and are avaiiale at the SECs Web site (wsr.secgen). IF
Gone rmore of the compettiors i a private company, the task fe more dificult
faven that private companies are not required to divalgetoformation to the
ppublie There area number of ways that rm ean ethtally aan informa
lion a2out its competitors. A sample of the most common techniques
‘shown in Table 8
heewww.capiralandjohnskitchen.com
ohn and Cari Ponce two of Prien, Crepe’,
‘est cooks and bust ertrepronu Tho two un &
roving ruber of vertros the Fortand area,
‘Gounod moune fe food Acesnthsoepect of ee
Slory Is the fle thatthe SBA Cuerartocs Loan
Progra ras playeain ta acces, Te Pancos have
tad te SBA oan payor tes and hs boen
Inetumrsannapng the bub ho busrosees