What complementary assets are critical to develop?

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

MacroeconomicChange

Entrepreneurial Motivation

Entrepreneurial Behavior

Industry

Condition

IndustryStatus

Opportunity Identification

ValueCurve

Competition

Learning curve

Complementary assets

Reputation effects

The Opportunity Analysis CanvasTM

Entrepreneurial Mindset

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 and commercialization • Improved benefits, utility, interoperability,

etc. can drive market demand higher– Sony PS3 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