Foundations of

Entrepreneurship
Prof. Dr. Malte Brettel

2013 Chair of Business Administration

for Engineers and Natural Scientists
 Foundations of
Entrepreneurship
Prof. Dr. Malte Brettel

Lecture session
The hottest startups
25/26 October 2013

2013 Chair of Business Administration

for Engineers and Natural Scientists
 Discussion: Selling muesli is this a good startup idea?

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 The hottest startups: Understanding business concepts

1 Target 2 Content 3 Tools

Results of your analysis The hottest startups Business Model Canvas

Your job is to present your
findings along five
dimensions to your fellow
students. You have 5
minutes per group.
We provide you with an Apply this framework to
already existing startup idea structure, analyze and
that your group has to understand your idea and
analyze and present business model

Each group consisting of 5-6 students

is expected to present their findings tomorrow
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Target: Use the following five dimensions to structure your

analysis on the assigned business model
Presentation:
5 minutes per group
1 minute / 1 person per dimension
What is the current situation for the company?
Market: What are market characteristics (i.e. Porters Five Forces)? Growth? Competitors? What
Situation is the firms current position in the market and how has this position developed?
Strategy: What is the long-term goal and how does the management want to get there?

How does the firm earn money?

Revenue: For what value are the customers willing to pay? For what do the currently pay?
Business model Cost structure: What are most important costs inherent in der model? Which key activities and
resources are most expensive?

What drives the business success (e.g. profitability)?

Value proposition: What kind of value is delivered? What problems are solved?
Drivers Customers: For whom is the startup creating value? How does it reach customers?
What key resources and activities does the USP require? Who are key partners?

What will the company do next or in the long run?

What about changes in the business model, product or service design due to environmental
Expectations changes (e.g. demography, regulation, laws, etc.)?
Will the management identify and exploit other entrepreneurial opportunities? .

What would you recommend to the managers of your business idea?

Are there other distribution channels and customer segments that the firm should aim for?
Recommendations Expansion: Can you scale-up or internationalize the idea? If so, how?
.

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Target - Example: mymuesli understanding the business

concept

Mostly unhealthy cereal variety in supermarkets (i.e. lots of sugar), traditional brand image
Market research has shown: cereal is a typical breakfast product, people tend to buy more than
Situation one brand to mix their perfect cereals at home Need for customized cereal
An increasing number of food-conscious consumers willing to pay more

Selling individually tailored cereal which consists of organic ingredients and possess a modern
brand image via stores and internet
Business model People are willing to pay more (i.e. you can charge a markup) as they no longer have to buy
different cereals to create their favorite mixtures, even traditional producer are profitable

Unique selling proposition: 1) customization (i.e. >566 quadrillion different combinations), 2)

high-quality organic ingredients (i.e. exotic ingredients, selected suppliers only), 3) simply a
Drivers better taste!
Delivery time, complexity of logistics and customers satisfaction

Increase the number and quality of selectable ingredients as well as the product range to reach
further customer segments
Expectations Place even more emphasis on quality standards as the firm grows
Stay innovative and creative to keep up the modern brand image

Implement a subscription model (i.e. regular/routine delivery)

New ways of distribution (e.g. customers can use machines in supermarkets to mix their cereals
Recommendations they can feel and taste the food)
Internationalization: Scale-up the business and bring it to different markets to avoid copycats
(i.e. MixMyGranola in the U.S.)
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Content (I/II): The 10 hottest startups to watch in NYC 2013

Kulturas products allow publishers and content owners to publish, manage, monetize and analyze
1 their videos and other rich-media content based on an open-source software.

2 Startapp actually deals with two parts of the todays mobile industry: the monetization challenge
that application developers face and application distribution.

3 The Young Entrepreneur Council provides entrepreneurs with access to tools, mentorship, and
resources that support each stage of the business and growth.
Offers users simple tools for ordering taxis with their mobile devices. Without making a call, users
4 can easily order a taxi, pay instantly, and watch their taxis on a GPS-enabled map.
Pontiflex has created Signup Ads, a simple way for mobile device users to opt-in for
5 adverstisements for from brand they like.

Noodle helps students and their families to easily navigate todays challenging educational
6 landscape. This search engine aggregates information for students and families.
RecycleBank rewards people for taking everyday green actions with discounts and deals from
7 local and national business.

Rent the Runway is a membership-based website that rents high-end designers apparel and
8 accessories in a 4- or 8-day basis.

Is a social networking site targeted at mothers and mother-to-be. This website allows mothers to
9 easily connect with one another to discuss all things concerning pregnancy and motherhood.

LocalVox is a local, social and mobile marketing platform that helps local businesses market
10 themselves online across a network of publishers, social media, search etc.

Link: http://www.huffingtonpost.com/heather-huhman/the-10-hottest-startups-t_b_2792776.html

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Content (II/II): The 10 hottest startups to watch in NYC 2012

Offers a suite of tools and technology to help major brands to better push their products and
11 content across social media.

12 Provides publishers and websites with real-time analytics that tell them how popular content is
right now.

13 Helps users learn programming languages (e.g. Python, Javascript) while motivating them with
badges and rewards.
Founded in 2009, the site started off as a funding platform (i.e. crowd-funding) for creative
14 projects.
This online service helps you to manage money as well as subscriptions plans and gives you
15 access to real life Certified Financial Planners.

MakerBot has established itself as one of the coolest, most interesting companies in 3D printing
16 today.
Helps its users dominate their fantasy sports leagues. The service provides statistics and
17 recommendations about which players they should have on their teams.

Founded in 2004, Thrillist began as a small email newsletter tailored to urban males. Today, it
18 generates over $40 million a year and reaches five million people each day.
Heres a company doing some truly interesting things around a seemingly mundane topic: online
19 listings for local businesses. Yext lets businesses make sure their information is accurate on 50
online publishers (e.g. Yelp, MapQuest, and Bing).

20 Helps people schedule doctor appointments online.

Link: http://venturebeat.com/2012/10/23/10-nyc-startups-were-crazy-for/

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Tool: The Business Model Canvas framework helps to

analyze and understand ideas and business models
Key Key Value Customer Customer
Partners Activities Proposition Relationship Segments

Key Channels
Resources

Cost Revenue
Structure Streams

Source: Osterwalder and Pigneur: Business Model Generation

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Tool: Business Model Canvas framework consists of nine

building blocks
Key Key Value Customer Customer
8 7
Partners Activities Proposition Relationship Segments
1 4 2

Key Channels
Resources 3
6

Cost 9 Revenue 5
Structure Streams

Source: Osterwalder and Pigneur: Business Model Generation

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 Group allocation: Please find your fellow group members
and start working on the startup number (#) below

1. xxx
2. xxx
3. xxx
4. xxx
5. xxx
6. xxx
7. xxx
8. xxx
9. xxx
10. xxx
11. xxx
12. xxx
13. xxx
14. xxx
15. xxx
16. xxx
17. xxx
18. xxx
19. xxx
20. xxx

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 Any questions left? Ask us anytime

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