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Entrepreneurial Strategy Generating & Exploiting New Entries

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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)

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Resource - Source of Competitive Advantage Creating a resource bundle that is: valuable, rare and inimitable. Market Knowledge Technological knowledge

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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.

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Some Disadvantages Environmental Instability Customer uncertainty Demand uncertainty Technological uncertainty Lead time

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Risk Reduction Strategy Narrow Scope Strategy Broad- Scope Strategy Imitation Strategy Managing Newness

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Strategies for Growth & Managing Implications

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Growth Strategies

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Diversification Backward Integration Forward Integration & Horizontal Integration Related Unrelated

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Implications of Growth Pressures on existing financial resources Pressures on Human resources. Pressures on management of employees Pressures on the Entrepreneurs time

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Overcoming Pressures on existing Financial Resources Managing Cash Flow Managing Inventory Managing Fixed Assets Managing Cost & Profits Taxes Record Keeping

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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

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Overcoming Pressures on Entrepreneurs Time Increased productivity Increased Job Satisfaction Improved interpersonal relationships Reduced time anxiety and tension Better health

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