Entrepreneurial strategies

Fahim akhtar

Entry wedges

Entry wedges

An entry wedge in business not more different than making a wedge for your venture in an industry

Entrepreneurship and strategy• “The patterns of decisions that shape the venture’s internal

resource configuration and deployment and guide alignment with the environment.”

• “Patterns of decisions” means both strategy formulation and strategy implementation.

Enterprise-level strategy

• Relationships between the firm and society at large.

Corporate strategy

Focuses on the problems of diversification and the management of a portfolio of business.

Business-level strategy

Oriented toward competing within a single industry

Functional andsub functional strategies

Involve marketing, finance and accounting, and human resource policies

Business models and strategy

• Who are the customers?• What do the customers value?• How does our business make money?• What is the underlying economic logic of the venture?

Strategy diamond

Business modelsBusiness Model Name Business Model Story

Business to Business (B2B) Selling to commercial organizations directly

Business to Customer (B2C) Selling to final users and consumers directly

Business to Business toCustomer (B2B2C)

Selling to commercial organizations and then sellingthrough directly to final users and consumers

Clicks and Bricks Selling through both the Internet and traditional businesslocation with a physical presence

Mash-ups Selling a Web-based application that mixes data fromdifferent online sources

Major Wedges• New product or service • Parallel competition• Franchising

New product or service• Most potent entry wedge• Truly new products and services are relatively rare.• Typically, new products have a lower failure rate than new

services, primarily because most service organizations face lower entry barriers.

• Ventures that initially offer a new product sometimes follow up with a related service

• Success with this strategy requires a concentrated effort at being comprehensive and innovative

Parallel Competition• “me too” strategy that introduces competitive duplications

into the market.• These duplications are parallel, not identical, to existing

products or services.• can be done with a small innovation or a variation in an

already well accepted and well-understood product line or service system.

• Most retailing start-ups, for example, enter with the parallel competition wedge

Franchising• Twist on both the new product and me-too wedges• Franchising takes a proven formula for success and expands it.• For the franchisor, franchising is a means of• Expanding by using other people’s money, time, and energy to

sell the product or service.• Franchisee is pursuing a me-too strategy

Rent seeking • In economics and in public-choice theory, rent-seeking

involves seeking to increase one's share of existing wealth without creating new wealth

FIRST-MOVER AVANTAGES

In marketing strategy, first-mover advantage, or FMA, is the advantage gained by the initial ("first-moving") significant occupant of a market segment.

Sources of First-Mover Advantage

• Having prime physical locations• Having technological space• Having customer perceptual space• Having an industry with standard setting• Developing switching costs• Generating lead time and learning

Growth strategy Quality as a Strategy

The Industry Life-Cycle Curve

Resource-Based Approach to Entrepreneurial Opportunity Assessment and Analysis