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ENTR 4435Introduction to Strategic Entrepreneurship
Alex Bruton
September 2008
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Contents
• Introduction
• Key concepts: strategic entrepreneurship
• Examples
• Wrap-up
Introduction
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Learning Outcomes
• At the end of this lecture, you should be able to:
Introduction
1. Define and/or distinguish between:• Strategy and entrepreneurship
• Exploitation and exploration
• Strategic entrepreneurship
2. Provide and discuss examples of each
3. Give reasons why strategic entrepreneurship is critical to the work of the entrepreneur
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Introduction
iPod by Apple
• Why is it so successful?
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Strategy and Entrepreneurship?
Key Concepts
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Key Concepts
Key Concepts
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Examples
iPod by Apple
• Since 2002:
• 162 million units sold
• 90% of market
• Why do I have one of these?
• Why do non-geeks have one of these?
Source: Apple press releases and annual reports – as reported at:http://en.wikipedia.org/wiki/Image:IPodsales_2008Q3.svg
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2003 2004 2005 2006 2007
25
20
15
10
5
0
Year
Millions iPods sold monthly
Value Created at Apple
Apple
Dell
HP
Microsoft
SHARE PRICES
600%
500%
400%
300%
200%
100%
0%
ROI
Examples
Source: Yahoo Finance
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Post-it Notes by 3M
• Spencer Silver, 1968
• Adhesive
• Arthur Fry, 1974
• Bookmark
Examples
• From 1980 to 2006:
• One of the top selling office products ever
• Over $100 million in revenues
Source: http://www.3m.com/us/office/postit/pastpresent/history.html10
The Digital Camera
• Kodak, 1975
• 8 lbs
• Toaster-size
• 0.01 megapixels
Examples
• Today:
• Hard to remember life before it
Source: www.msnbc.msn.com/id/9261340/
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Take these Concepts Further
• Starting and running a business is as important as:
• Encouraging creativity and managing innovation
• Balance
• Operations vs. innovation
• Left brain vs. right brain
• Your own unique processes
Wrap-up
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Learning Outcomes
• At the end of this lecture, you should be able to:
1. Define and/or distinguish between:• Strategy and entrepreneurship
• Exploitation and exploration
• Strategic entrepreneurship
2. Provide and discuss examples of each
3. Give reasons why strategic entrepreneurship is critical to the work of the entrepreneur
Wrap-up
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Appendix: Definitions
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Strategy
• “An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.”
• Hitt, M.A. et al. (2006) Strategic Management: Competitiveness and Globalization – Concepts, 2nd Canadian Edition. Thomson Nelson.
• “The direction and scope of an organization over the long term, which achieves advantages for the organization through its configuration of resources within a changing environment and to fulfill stakeholder expectations.”
• Johnson, G. and Scholes, K. (2002) Exploring Corporate Strategy, 6th edition. Prentice Hall.
Key Concepts
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Entrepreneurship
• “An approach to management [defined as] the pursuit of opportunity without regard to resources currently controlled.”
• Stevenson, H.H. (1983) “A Perspective on Entrepreneurship.” In New Ventures and Entrepreneurship, 5th Ed. Stevenson, Roberts et al. (1999), McGraw-Hill.
• “The process through which individuals and teams create value by bringing together unique packages of resource inputs to exploit opportunities in the environment.”
• Morris, M.H. (1998) Entrepreneurial Intensity: Sustainable Advantages for Individuals, Organizations and Societies. Westport, CT: Quorum.
Key Concepts
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Strategic Entrepreneurship
• A firm’s “efforts to simultaneously exploit today’s competitive advantages while exploring for the innovations that will be the foundation of tomorrow’s competitive advantages.”
• Ireland, R.D. and J.W. Webb (2007). Strategic Entrepreneurship: Creating Competitive Advantage Through Streams of Innovation. Business Horizons, 50: 49-59.
Key Concepts