Zero Based Design g7114

ZERO BASED DESIGN

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Starting from a position of assumed ignorance Assuming that nothing done before can work Hitting the poor people segment. People living under $2 a day 8 steps for the conceptualization and implementation of a business to market essential products and services

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Listening Transforming the market Scale Ruthless affordability Private capital Last mile distribution Aspirational branding Jugaad innovation

Which way should you grow?   

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What is growth? Very first identify your value proposition Select the best strategy on the basis of your proposition and growth will follow Price value leaders Relational value players Performance value leaders

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Price value leaders Value proposition is based on low cost  Cannot be achieved if cost leadership does not exist  Convenience and price sensitive customers 

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Relational value players Don’t just provide products or services  Provides solutions  Doing something better for them 

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Performance value leaders Continuous innovation  They shape and build new markets  Having a decentralized, team oriented structure that encourages discovery 

Solving the Dilemmas of Growth 

Three strategies for new growth business Sustaining strategy  A low end disruptive  New market 

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Sustaining innovation are the lifeblood of established firms Building better on existing products  Improving them  Hitting larger markets 

Disruptive strategies 

Low end disruption Targeting the least demanding customers  Reaching with simpler, convenient, lower priced products  Dell, wal mart, amazon  These are unattended/ less focused markets in existing setups  Established firm ignore them, entering firms focus heavily  The idea is to push high cost competitors out and take their place 

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New market strategies Giving consumers what was not provided before  Providing similar to what others are giving but at the expense of performance  Basically niche markets which are smaller in numbers  Ignored by established companies due to lower numbers and growth opportunities 