Chapter 3
Entrepreneurial Strategy
Generating and Exploiting
New Strategies
New Entry
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Offering a new product to an established or
new market. which countries, which
segments, how to manage and implement
marketing effort, how to enter - with
intermediaries or directly, with what
information.
Sourcing - whether to obtain products, make
or buy?
iii) Investment and control - joint venture,
global partner. to enter a new market
entrepreneur need to start analysis of,
Market… find market information.
Product information
Match existing products to markets - air,
sea, rail, road.
Offering New products
Product management
Manufacturing specifications
- Labeling
- Packaging
- Production control
- Market information(for the purpose of update
the market.
Cont….
Price support.
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Price support
- Establishment of prices
- Discounts
- Distribution and maintenance of pricelists
- Competitive information
Cont…
promotion /selling support.
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3. Promotion/selling support
- Advertising
- Promotion
- Direct mail
- trade shows
- Printing
- Selling (direct)
- Sales force
- Sale or returns
Cont…
financial support
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Financial support
- Billing, collecting invoices
- voucher
- Planning, scheduling budget data
- Auditing
Stages of entrepreneurial
strategy
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An entrepreneurial strategy has six Key Stages
1.Generation of a New Entry Strategy
2.Exploitation(use) of New Entry Strategy
3.A feedback loop from the New strategy
4. Product adaptation strategy - modifications
5.Availability and security strategy.
6. Low price strategy -
New Entry

Entrepreneurial Strategy is the set of decisions
actins, and reactions that first generate, and
then exploit over time .
Generation of a new Entry
Opportunity
Resources as a source of Competitive
Advantage
Understanding where a sustainable competitive
advantage comes from will provide some
insight into how entrepreneurs can generate
new entries that are likely to provide the basis
for high firm from performance over an
extended period of time
Generation of a new Entry
Opportunity
Entrepreneurial Resources: The ability to obtain, and
then recombine, resources into a bundle that is
valuable, to both employees and businessman.
 Entrepreneurs combines the resources into such a
different ways as this bundle of resources provides a
firm its capacity to achieve superior performance
 For Example: A high skilled workforce will be miss
use if the organization’s culture, teamwork,
communication does not support them
Generation of a new Entry
Opportunity
Market Knowledge: Possession of Information,
technology, know-how, and skills that provide
insight into a market and its customers
Technological Knowledge: Possession of
information, technology, know-how and skills
that provide insight into ways to create new
knowledge
Generation of a new Entry
Opportunity

Window of Opportunity: The period of time
when the environment is favorable for
entrepreneurs to exploit a particular new entry
(2) ENTRY EXPLOITATION
Competitive Advantages of ‘being first’
1.
First mover develop a cost advantage
2.
First mover face less competitive rivalry
3.
First movers can secure important channels
4.
First movers are better positioned to satisfy
customers
5.
First mover gain expertise through
participation
Cont… ENTRY EXPLOITATION
Disadvantages of ‘Being First’
1.
Demand Uncertainty: Considerable difficulty in
accurately estimating the potential size of the
market, how fast it will grow, and the key
dimensions along which it will grow.
Cont.. ENTRY EXPLOITATION
3. Uncertainty of Customers: Customers may
have considerable difficulty in accurately
assessing whether the new product or service
provides value for them
(3) Feedback loop strategy
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Feedback loop strategy indicates to study as a
whole market and to find the behaviour of
customer ,that customer can take satisfaction
or they are dissatisfy with using the product.
Cont..(4) Product adaptation
strategy - modifications

The term "product adaptation" can be used to
describe a "follower mentality" in product
innovation strategy or a particular aspect of
business development. The need to develop an
adaptation strategy can lead to changes in
pricing, delivery and packaging. Ultimately,
creating an effective product. adaptation
strategy is a critical factor for all businesses
that wish to attract a dynamic customer.
5.Availability and security
strategy.
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The security methodology described in this
document is designed to help security
professionals develop a strategy to protect the
availability, integrity, and confidentiality of
data in an organization's information
technology (IT) system
6. Low price strategy 
Establishing a relatively low price for a
product or service, usually to stimulate
demand and acquire market share. This makes
the most economic sense for the seller when
there are significant economies of scale
achievable from high volume production, or
when the buyers are price sensitive and the
seller has few competitive advantages
What is risk reduction strategy.
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to reduce the risk of the new market place
entrepreneur need to use the following
important strategy to reduce the risk of market.
Market scope strategy.
imitation strategy.
Managing newness.
(1) Market scope strategy.
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Market scope strategy
A choice about which customer group to serve
Narrow scope strategy use.
Broad scope strategy
(2) Imitation strategy.

Imitation strategy is that strategy which most
of entrepreneur follow it for the purpose of that
no one can follow the activities of the
business. it means provide those service which
no one can copy it.
(3) Managing Newness.
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Learning new task
New role assignment.
Formal and informal communication.