VCW 4 PDB: Flood Prevention and Management
Determining the optimal market for launching an Earth Observation service for flood modeling.
What is the most attractive geographical market for our Start-Up to launch the EO service Stormwater, Sewer & Flood Modeling?
This project utilizes the Value Creation Wheel (VCW) to identify the most attractive geographical market for PDB, a startup distributing an Earth Observation (EO) based flood modeling software.
Overview:
PDB aims to address the increasing risks of floods by providing access to advanced flood modeling software and consulting services. The team employed the VCW framework to analyze market needs, competitor landscape, and potential target markets, ultimately selecting Japan as the optimal location for launching their services.
Application and Process:
The process began by defining the core challenge: finding the most attractive geographical market for launching the EO service. The team then performed an industry analysis, examining the impact of natural disasters and the growing need for flood modeling solutions. They conducted a PESTEL analysis to identify influential factors, followed by a SWOT analysis to assess internal strengths and weaknesses. The Porter 5 Forces analysis helped evaluate the competitive landscape. A thorough competitor analysis was also conducted, comparing PDB's offerings with existing solutions. The team then generated and evaluated potential filters using the brainwriting method and the POCR method. Through MCDA and a value creation funnel, they narrowed down potential markets and selected Japan, specifically the Hokkaido prefecture, as the target market.
Key Takeaways:
Data-Driven Decision Making: Utilizing a structured framework like VCW allows for objective market selection based on data analysis.
Japan's Vulnerability to Floods: Japan's susceptibility to natural disasters and increasing flood risks make it an ideal market for PDB's services.
Value-Added Services: Combining software distribution with consulting and training enhances the value proposition for clients.
Focus on User Needs: Understanding the specific needs of target customer segments allows for tailored service offerings.
Collaboration and Partnerships: Building relationships with stakeholders and technology providers is crucial for success in the EO industry.
Conclusion:
PDB's application of the VCW framework successfully identified Japan as the optimal market for launching its flood modeling services. The project demonstrates the effectiveness of a systematic approach in navigating complex market entry decisions.