Questions and Answers
What does a good problem look like?
A good problem is characterized by elements like market size, growth, urgency, frequency, necessity, unfair advantage, and emotional connection.
The Total Addressable Market (TAM) represents the maximum potential demand for a particular offering, assuming ______ market share.
100%
The Lean Canvas consists of 7 blocks.
False
Which of the following are components of the Total Addressable Market (TAM)? (Select all that apply)
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What is the purpose of break-even analysis?
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Flipkart initially focused only on selling books online.
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What sparked the idea for Flipkart?
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List a key metric for evaluating a company's performance according to the Lean Canvas.
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Which of these is not part of the SWOT analysis?
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Study Notes
Innovation Cell Bootcamp Overview
- Focus on ideation and creation of solutions in a structured environment.
- Sessions cover various strategic approaches including Lean Canvas and SWOT analysis.
Evaluating a Good Problem
- Key metrics to identify viable problems include:
- Market Size: Demand potential like Swiggy's reach.
- Market Growth: Trends illustrated by Zomato's expansion.
- Urgency: Needs that require immediate solutions like Practo.
- Frequency: Problems encountered regularly, e.g., Netflix viewership.
- Mandatory Solutions: Issues requiring resolution, demonstrated by Byju’s.
- Unfair Advantage: Unique selling points like Razorpay’s technology.
- Emotional Connection: Problems that resonate emotionally, such as those addressed by Portea Medical.
Characteristics of a Strong Problem
- Problems that affect many individuals and are growing in scope.
- Issues that have urgency and frequency in daily life.
- Problems deemed essential for resolution, with competitive advantages.
- Emotional resonance leading to robust market demand.
Reverse Engineering Approach
- Analyzing successful business models and understanding the components that drive feasibility.
Components of Total Addressable Market (TAM)
- TAM defines maximum revenue potential for an offering in a specific market.
- Essential components include:
- Clear market definition.
- Geographic relevance and customer segmentation.
- Market size estimations.
- Revenue per customer projections.
Guesstimates in Market Analysis
- Techniques to derive numerical estimates from various contextual factors.
- Involves break down of demand and supply for precise forecasting.
Market Research Fundamentals
- Direct engagement with potential customers to evaluate product feasibility.
- Encompasses various activities:
- Analyzing utility and marketability.
- Measuring demand and market potential.
- Examining competitive landscape and marketing methods.
Lean Canvas Model
- Strategic template to develop business models with distinct sections:
- Problem identification and customer needs.
- Proposed solutions and cost structure analysis.
- Unique value propositions that differentiate from competitors.
- Customer segmentation to focus on target audiences.
- Channels for customer acquisition and key metrics for performance evaluation.
- Revenue streams analysis, understanding how funds are generated.
SWOT Analysis
- Framework to evaluate strengths, weaknesses, opportunities, and threats surrounding a business.
- Aids in strategic planning by identifying internal and external factors.
Break-Even Analysis
- Critical for determining the intersection of total costs and revenue.
- Utilizes fixed and variable costs to establish the break-even point via calculations.
- Example:
- Company X requires sales of 10,000 pens at ₹10 to break even, with ₹1,00,000 fixed costs and ₹2 variable cost per unit.
Case Study: Flipkart
- Founders Sachin and Binny Bansal identified unmet market needs for books in 2007.
- Addressed several consumer pain points like limited selection and delivery issues.
- Tap into growing internet usage and emerging middle class for a broader e-commerce platform.
- Diverse research strategies employed:
- Quantitative surveys for insights on consumer behavior.
- Social media monitoring to understand brand perception.
- Website analytics to improve user experience.
Key Aspects of Flipkart’s Strategy
- Identified problem: Difficulty accessing and purchasing diverse products.
- Unique value proposition includes wide selection, competitive pricing, and trust through cash-on-delivery options.
- Channels include website, mobile app, and social media for customer reach.
Adapting to Market Factors
- Competitiveness in pricing and execution is vital for growth and scalability.
- Internal challenges relate to inventory management and marketing investments.
- Continuous assessment and adaptation to external threats and opportunities drive long-term success.
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Description
Join the NIT Kurukshetra Ideation Bootcamp to explore the essentials of problem identification and innovative solution generation. Learn about tools like the Lean Canvas, SWOT analysis, and market research to effectively assess and generate impactful ideas. Embark on a creative journey that combines theory with practical applications.
