What complementary assets are critical to develop Objectives
What complementary assets are critical to develop?
Objectives • Examine complementary assets in the context of competition • Explore the impact of complementary assets on your success as an entrepreneur
The Opportunity Analysis Canvas TM Industry Condition Competition Learning curve Entrepreneurial Motivation Complementary assets Reputation effects Industry Status Entrepreneurial Mindset Opportunity Identification Value Curve Entrepreneurial Behavior Macroeconomic Change
Defining complementary assets “capabilities or infrastructure to support commercialization, beyond assets fundamentally associated with the product” • Includes tangible resources (money, equipment, and real estate) and intangible assets (knowledge, relationships, and IP) • Entrepreneurs may have an advantage over competitors when their knowledge, relationships, and/or IP is significant
Avenues for complementary assets • Build – For example, buy or rent a warehouse for order fulfillment, hire staff, manage operations, etc. • Buy • Collaborate – Often the fastest and cheapest path for entrepreneurs
Famigo + AT&T collaboration
Complementary assets may increase demand commercialization • Improved benefits, utility, interoperability, etc. can drive market demand higher – Sony PS 3 sales increased with Blue-ray DVDs availability for sale and for rent
A venture opportunity could be to develop Complementary Assets for new products
Summary • Beware of starting a company in an area where the company with the most money wins • Instead, compete where knowledge, relationships, and/or IP are complimentary assets and key sources of competitive advantage • Seek collaborative, innovation-based solutions to tackling competitors
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