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
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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
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Managing Cash Flow
Managing Inventory
Managing Fixed Assets
Managing Cost & Profits
Taxes
Record Keeping
Overcoming Pressures on the
Management of Employees
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Establish Team spirit
Communicate with employees
Provide Feedback
Delegate Some responsibility to others
Provide continuous training for employees
Overcoming Pressures on
Entrepreneurs’ Time
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Increased productivity
Increased Job Satisfaction
Improved interpersonal relationships
Reduced time anxiety and tension
Better health