entrepreneurial strategy
DESCRIPTION
Entrepreneurial Strategy. Generating & Exploiting New Entries. New Entry . Offering a New product to new or established market Offering an established product to a new market Creating a new organization (whether the product or the market is new or not). - PowerPoint PPT PresentationTRANSCRIPT
Entrepreneurial Strategy
Generating & Exploiting New Entries
New Entry
1. Offering a New product to new or established market
2. Offering an established product to a new market
3. Creating a new organization (whether the product or the market is new or not)
Resource - Source of Competitive Advantage
• Creating a resource bundle that is:– valuable,– rare and– inimitable.
• Market Knowledge• Technological knowledge
Entry Strategy for New entry Exploitation
• First Movers develop a cost advantage• First movers face less competitive rivalry• First movers can secure important channels• First movers are better positioned to satisfy
customers.• First movers gain expertise through participation.
Some Disadvantages…
• Environmental Instability
• Customer uncertainty
• Demand uncertainty
• Technological uncertainty
• Lead time
Risk Reduction Strategy
• Narrow –Scope Strategy
• Broad- Scope Strategy
• Imitation Strategy
• Managing Newness
Strategies for Growth & Managing Implications
Growth Strategies
Diversification
• Backward Integration• Forward Integration• & Horizontal Integration
• Related • Unrelated
Implications of Growth
• Pressures on existing financial resources
• Pressures on Human resources.
• Pressures on management of
employees
• Pressures on the Entrepreneurs time
Overcoming Pressures on existing Financial Resources
• Managing Cash Flow• Managing Inventory• Managing Fixed Assets• Managing Cost & Profits• Taxes• Record Keeping
Overcoming Pressures on the Management of Employees
• Establish Team spirit• Communicate with employees• Provide Feedback• Delegate Some responsibility to others• Provide continuous training for employees
Overcoming Pressures on Entrepreneurs’ Time
• Increased productivity• Increased Job Satisfaction• Improved interpersonal relationships• Reduced time anxiety and tension• Better health