Topic 1.2 Markets and Competitive Advantage · pipeline build
Bean & Brew latte $4.00 students Daily Grind latte $3.50 ? drop the price? be different? Topic 1.2 Markets and Competitive Advantage market · market price · 5 moves to win A MARKET = any physical or virtual space where SELLERS interact with BUYERS 🏪 street corner 📱 an app 💻 a website LOCAL: this street REGIONAL: one state GLOBAL: 60 countries exchange is VOLUNTARY — nobody is forced to buy $4 seller earns REVENUE buyer gets VALUE market = where value creation + value capture happen Who decides the price? Nobody — and everybody. SELLERS want HIGHER prices → profit BUYERS want LOWER prices → savings PRICE prevailing MARKET PRICE = the going rate Bean & Brew $4.00 Daily Grind $3.50 Daily Grind $3.75 $3.75 $4.00 market price ≈ $3.75 NO supply & demand graphs on this exam explain in WORDS: sellers up · buyers down · price in between So how does Mina WIN? COMPETITIVE ADVANTAGE = the ability to outperform rivals in the same market outperform at: winning CUSTOMERS scoreboard: MARKET SHARE 300 students / week 60% 40% Bean & Brew 180 Daily Grind 120 more share → more sales → potentially more profit below-cost price = share but NO profit How competitive is this market? Three dials. few many number of rivals distinct identical differentiation hard easy easy to undercut? all three → HIGHLY competitive (coffee beans) other way → WEAKER competition (smartphones) RULE: market competitiveness → determines the STRATEGY read the dials first, then pick the move COMMODITIES: wheat · corn · coffee beans beans Farm A beans Farm B beans Farm C beans Farm D identical products → buyers care about ONE thing PRICE more EFFICIENT lowest price $ better machines · less waste · cheaper transport → wins no room for 'our beans are special' Differentiated market: show customers you are SUPERIOR the exam lists five moves HIGHER QUALITY UNIQUE FEATURES BETTER SERVICE LOWER PRICE BETTER MARKETING Daily Grind $3.50 picks LOWER PRICE Bean & Brew study tables outlets · open till 9 5th refill free $4.00 cheap coffee → across the street study 2 hours → stay, pay $0.50 more competitive advantage through DIFFERENTIATION Third move: make it HARD for new rivals to show up The extreme case: no competition at all BARRIERS TO ENTRY PATENTS / IP REGULATIONS SUPPLIER ACCESS HIGH STARTUP COST LOW PRICE AT SCALE Mina EXCLUSIVE ROASTER DEAL ONLY ONE MONOPOLY: one seller · unique product · no competition protects its position by MAINTAINING barriers to entry exam cue: only seller of a unique product, keeps rivals out → monopoly market = sellers meet buyers (physical / virtual) voluntary exchange: revenue ↔ value sellers up · buyers down → market price competitive advantage → market share 3 dials decide the strategy commodity: efficiency · differentiated: 5 moves barriers to entry · monopoly Business Canvas · Task 2 Plan to seek competitive advantage: rivals · which move · why it fits Scene 1 / 9
PAUSE & CHECK A town has 14 nail salons that offer nearly identical services at similar prices, and new salons open every few months. Based on the three factors that determine competitiveness, this market is best described as
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Pilot v2. Timing is estimated from narration length (145 wpm); the final video uses an ElevenLabs English voice recorded from the performance script (energy, pauses, emphasis), and scene timing then follows the real audio. The browser voice here is only a placeholder for pacing — it cannot act. Other-language audio is a customer-selected option; English is the default. Dollar figures in Scenes 6–7 are illustrative. No logos used.