Entrepreneurial Strategy

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
• Creating a resource bundle that is:
– valuable,
– rare and
– inimitable.
• Market Knowledge
• Technological knowledge
Entry Strategy for New entry
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
• 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
• Backward Integration
• Forward Integration
• & Horizontal Integration
• Related
• Unrelated
Implications of Growth
• Pressures on existing financial resources
• Pressures on Human resources.
• Pressures on management of
• Pressures on the Entrepreneurs time
Overcoming Pressures on existing
Financial Resources
Managing Cash Flow
Managing Inventory
Managing Fixed Assets
Managing Cost & Profits
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