Tiger Sisters Podcast: Mini Harvard MBA Overview

Introduction

Hosts: Sheree and Jean (Tiger Sisters)
Jean's Background:
- Graduated from Harvard Business School (HBS) in 2017
- Experience at Goldman Sachs, Zynga, and Snapchat
- Holds over 50 patents in AI
Sheree's Background:
- Recent Stanford Business School graduate
Objective: Provide a crash course in business concepts
- Four main topics: Strategy, Marketing, Product Development, and Finance
- Savings on MBA costs (collectively spent $500,000)

Importance of Strategy at HBS:
- Defined as a road map for competition and success
Michael Porter's Five Forces:
1. Threat of New Entrants
  - Starbucks example: High barriers to entry because of brand strength, supply chain efficiency, and prime real estate.
2. Bargaining Power of Suppliers
  - Starbucks has significant bargaining power due to bulk purchase agreements.
3. Bargaining Power of Buyers
  - High brand loyalty for Starbucks; loyalty programs and technology investments reduce buyer power.
4. Threat of Substitutes
  - Starbucks mitigates this by diversifying into adjacent categories (e.g., coffee pods).
5. Rivalry Among Competitors
  - Starbucks focuses on customer service and high quality to differentiate itself despite competition.
Porter's Generic Strategies:
- Cost Leadership vs. Differentiation
- Starbucks exemplifies differentiation through premium pricing and unique customer experience.

STP Framework (Segmenting, Targeting, Positioning):
- Key to effective marketing campaigns.
Warby Parker Case Study:
- Disrupted eyewear market dominated by Luxottica.
- Segmenting: Identified different buyer types (high-end, cost-conscious, trend-focused).
- Targeting: Chose to focus on cost-conscious Millennials.
- Positioning: Defined as modern, chic, accessible, and socially responsible.
Importance of understanding customer values and creating brand alignment.

Emphasis on solving specific customer problems rather than guessing.
Netflix Case Study:
- Focus on user feedback and iteration (e.g., A/B testing).
- Customizing content based on user preferences to enhance engagement.

Objective of understanding finance for business leaders rather than becoming financial experts.
Key Concepts:
1. Revenue vs. Profit:
  - Revenue: Money coming in (subscription fees).
  - Profit: Money left after expenses are covered.
2. Cash Flow:
  - Important to differentiate cash flow from profit.
3. Unit Economics:
  - Cost per unit (e.g., cost per subscriber for Netflix).
4. Forecast and Runway:
  - How long a company can operate at its current burn rate.
5. Valuation Metrics:
  - Common financial ratios to assess company value (P/E ratio, EV/EBITDA).