entrepreneurial strategies
TRANSCRIPT
Entrepreneurial strategies
Fahim akhtar
Entry wedges
Entry wedges
An entry wedge in business not more different than making a wedge for your venture in an industry
Entrepreneurship and strategy• “The patterns of decisions that shape the venture’s internal
resource configuration and deployment and guide alignment with the environment.”
• “Patterns of decisions” means both strategy formulation and strategy implementation.
Enterprise-level strategy
• Relationships between the firm and society at large.
Corporate strategy
Focuses on the problems of diversification and the management of a portfolio of business.
Business-level strategy
Oriented toward competing within a single industry
Functional andsub functional strategies
Involve marketing, finance and accounting, and human resource policies
Business models and strategy
• Who are the customers?• What do the customers value?• How does our business make money?• What is the underlying economic logic of the venture?
Strategy diamond
Business modelsBusiness Model Name Business Model Story
Business to Business (B2B) Selling to commercial organizations directly
Business to Customer (B2C) Selling to final users and consumers directly
Business to Business toCustomer (B2B2C)
Selling to commercial organizations and then sellingthrough directly to final users and consumers
Clicks and Bricks Selling through both the Internet and traditional businesslocation with a physical presence
Mash-ups Selling a Web-based application that mixes data fromdifferent online sources
Major Wedges• New product or service • Parallel competition• Franchising
New product or service• Most potent entry wedge• Truly new products and services are relatively rare.• Typically, new products have a lower failure rate than new
services, primarily because most service organizations face lower entry barriers.
• Ventures that initially offer a new product sometimes follow up with a related service
• Success with this strategy requires a concentrated effort at being comprehensive and innovative
Parallel Competition• “me too” strategy that introduces competitive duplications
into the market.• These duplications are parallel, not identical, to existing
products or services.• can be done with a small innovation or a variation in an
already well accepted and well-understood product line or service system.
• Most retailing start-ups, for example, enter with the parallel competition wedge
Franchising• Twist on both the new product and me-too wedges• Franchising takes a proven formula for success and expands it.• For the franchisor, franchising is a means of• Expanding by using other people’s money, time, and energy to
sell the product or service.• Franchisee is pursuing a me-too strategy
Rent seeking • In economics and in public-choice theory, rent-seeking
involves seeking to increase one's share of existing wealth without creating new wealth
FIRST-MOVER AVANTAGES
In marketing strategy, first-mover advantage, or FMA, is the advantage gained by the initial ("first-moving") significant occupant of a market segment.
Sources of First-Mover Advantage
• Having prime physical locations• Having technological space• Having customer perceptual space• Having an industry with standard setting• Developing switching costs• Generating lead time and learning
Growth strategy Quality as a Strategy
The Industry Life-Cycle Curve
Resource-Based Approach to Entrepreneurial Opportunity Assessment and Analysis