Market Gap Investments
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  • April27th

    I understand from a range of press reports that the current Australian government has shelved plans to introduce a proposed Carbon Reduction Trading Scheme (CPRS or ETS (Emissions Trading Scheme) depending on the reporting journalist) and any scheme is unlikely to be introduced until 2013.

     So what does this mean for business?

     There has been talk in the media that business is unable to act because the legislative framework is too uncertain for business to act.

    Since when did business need certainty to act?

    While a clear CPRS may drive all businesses to take carbon accounting seriously, there are many innovative businesses that are changing their business model now to reduce carbon emissions for the good of the planet and to create a profit centre for their business.

     So what if nothing is introduced for another four years?

     Now is the perfect time for all businesses to review their business cycle and understand carbon emissions at a micro level.

     Once a business understands the cost drivers behind carbon emissions they can change their business practices and be ahead of any scheme and competitors.

     Major emitters are already reporting under the NGER (National Greenhouse and Energy Reporting) Act http://www.climatechange.gov.au/reporting  , while more businesses have adopted sustainability reporting under the GRI (Global Reporting Initiative) http://www.globalreporting.org/Home .

     There is opportunity in uncertainty that innovators and leading organisations are already pursuing. Getting ahead of competitors and staking a claim to our future. Isn’t that the role of business?

     Now is the time to act.

  • April19th

    I believe that depends on where you sit from the customer’s point of view.

    While there are many different value points along the way to delivering a service or product to a customer, it is the customer that will determine the value by what the customer is prepared to pay.

      I’ve looked at several business plans in the last week.

      The plans are great on describing the business idea – the technology, product or service that will be taken to market. The analysis seems right, the descriptions of how things work and will be delivered are passionately explained. The strategic thinking behind the offering seems thorough.

      The major focus of each of the financials is revenue and then profit, with a reasonable explanation of the cost structure.  The financial strategies to turn the idea into profit seem to make logical sense.

     Cost structures seem clear, mainly because they have a price and an invoice attached to them.

     What is more difficult to explain is the value proposition and how dollars flow in the value chain that delivers the benefit along the way to the customer. While it may be relatively easy to develop financial projections, the strategies can only be implemented when enough customers see value in the idea and are prepared to pay for that value.

      If we buy something for $10 is it because that is the cost, or do we buy something for $10 because we get some intrinsic benefit or value we can attribute to the purchase that is equal to or greater than the price?

      It is important a business thoroughly understands the value proposition from the customers’ perspective when determining the appropriate pricing model and developing the strategies to take the offering to market.

      The strategy should be developed on the understanding that the customer must receive at least the value they are paying, or there will never be a long term relationship.

  • April12th

    With so many blogs on the web, and so much information available to businesses, it seems unnecessary to create a unique place for an additional point of view.

    So why start something?

    Market Gap is being commercialised to help businesses implement strategies. Our focus is on taking the step from knowing to doing.

    We also want to help our clients contribute to the communities they operate in and to make conscious positive decisions about the environment.

    In our experience, most businesses have a good grasp of their initial strategic direction, an awareness of what is happening in their community and a general understanding of environmental issues.

    And most of us get busy, dealing with the day to day things that are critical to survival and making money. And often that’s where we stay. Subsistence business. It works. It creates employment and generates money by meeting a customer need. So what’s wrong with that? Nothing, if that’s where we want to be.

    Businesses start with an idea, an entrepreneur and a customer willing to pay for the product or service. The start up’s future is then aligned with a particular customer or idea, and that’s when the business starts to make long term strategic decisions as part of the day to day transactions, without assessing the long term implications of those decisions. It’s why we succeed, fail, change direction and then start to ask “How did I get here?”

    Through this blog, I want to share my experiences and start conversations that help businesses build the link between strategic thinking and every day actions to expand business thinking to extend to their communities as well as the environment.

    Your comments, support, and feedback are important.