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