Part of the CIBC Presents Entrepreneurship 101 Series at MaRS. Speaker: Ajay Agrawal, Peter Munk Professor of Entrepreneurship at the Rotman School of Management. More information about the event, including video: http://www.marsdd.com/Events/Event-Calendar/Ent101/2008/building-a-business-moderl-11122008.html

1. NOVEMBER 12, 2008 ENTREPRENEURSHIP 101 @ MARS PROFESSOR AJAY AGRAWAL ROTMAN SCHOOL OF MANAGEMENT & MARTIN PROSPERITY INSTITUTE The Entrepreneur’s Three Key Questions ©2008 Ajay Agrawal

3. Motion Metrics: Broken Tooth Detection System

4. Google in Context Originally the Merchant’s Bank of Halifax, renamed the Royal Bank of Canada in 1901 Employees as of September 2008 Market Cap as of today – November 12, 2008 Founding Year No. of Employees Market Cap RBC 1864 66,748 $49.92B RIM 1984 8,387 $30.49B GOOGLE 1998 20,123 $97.15B

5. What’s my business? ©2008 Ajay Agrawal

7. What’s my business model? ©2008 Ajay Agrawal

13. Importance of Complementary Assets Excludability Low Low High High ©2008 Ajay Agrawal Compete (stealth strategy, Christensen, disk drives; disrupts existing industry leadership) Cooperate? (strategy: invest in reputation for trading in ideas; e.g., Cisco; formal organizations, e.g., ASCAP in music, TLOs in universities, VCs; reinforces existing industry leadership) Either Strategy (strategy: entrepreneur’s choice, relative returns from competition v. cooperation?; e.g., Xerox developed complete vertical chain versus Nintendo’s widespread licensing of software development tools) Cooperate (strategy: demonstrate value, attract multiple bidders; biotech/pharma; reinforces existing industry leadership)

14. What’s my pricing strategy? ©2008 Ajay Agrawal