PART $1$

Question $1$: Business Models

$1.$ Alex Osterwalder describes a business model as $$a blueprint for a strategy to be implemented through organizational structures, processes, and systems$$ and suggests that new ventures use the Business Model Canvas.

a$.$ Why and how should a new venture use the Business Model Canvas instead of writing a business plan? $(1$ mark$)$

A new venture should use the Business Model Canvas instead of writing a business plan because BMC is simpler and more flexible than a traditional plan. BMC provides a visual representation making it easier to understand, communicate with the stakeholders and allows for any changes and adjustments as new insights flow in$.$

How:

A venture should use the Business Model Canvas by focusing on the key elements of the canvas such as value proposition, customer segments, resources, costs, and revenue streams. It helps the entrepreneurs to focus on what matters the most. BMC is also a brainstorming tool that can be used to map out and validate the assumptions. The best use of BMC model is when the entrepreneur makes continuous iterations on the canvas based on the feedback and customer discovery.

b$.$ When is the time to write a business plan? $(1$ mark$)$

$2.$ Innovation and Disruption

a$.$ Why is product innovation alone often insufficient to disrupt an incumbent when entering a mature market? $(1$ mark$)$

b$.$ What forms of differentiation should the challenger consider in this scenario? Provide examples. $(1$ mark$)$

$3.$ Two Sided Markets.

Two sided markets facilitate transactions between two distinct but interdependent groups, usually buyers and sellers. Identify and discuss at least two characteristics that a successful $($i$.$e$.$ high growth, low churn$)$ two sided platform must have $(2$ marks$).$

$(6$ marks$)$

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Question $2$: Finding the Target

$1.$ Geoffrey Moore describes a market segment as a unit of conversation. What does he mean? What does this tell you about selecting your segment for launch? $(2$ marks$)$

$2.$ What are the costs that result from failing to define your Persona$($s$)?(2$ marks$)$

$3.$ What are the implications of launching without Product$-$Market Fit? Why do you think that many new ventures launch without it$?(2$ marks$)$

$(6$ Marks$)$

Question $3$: Traits of successful Entrepreneurs

The video presentations by Yves Potvin here and by Jack Newton here reveal much about what it takes to succeed as an entrepreneur. Both are successful in very different industries, yet their stories reveal common traits. Identify and discuss five lessons common to both that do you think led to their success.

$(10$ marks$)$