8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 1/26
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 2/26
Cop ri&ht ' ())* b Nelson# a di$ision o% Tho+son Canada ,i+ited
11
STRATEGY: PLANNINGFOR COMPETITIVE
ADVANTAGE
1
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 3/26
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
,EARNIN- OB ECTIVES/. 0e1ne a co+petiti$e ad$anta&e and e2plain
3h an entrepreneur needs to ha$e one to besuccess%ul.
(. 0escribe a ne3 1r+ strate& # and e2plain 3hentrepreneurs need one to protect their pro1ts%ro+ opportunit e2ploitation.
4. 0istin&uish bet3een e5orts to 6eep others %ro+learnin& about or understandin& the businessidea and barriers to i+itation# and e2plain 3hboth are i+portant to entrepreneurs.
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 4/26
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
,EARNIN- OB ECTIVES7. 0e1ne Arro38s parado2# and e2plain the proble+ o%
disclosure.9. ,ist se$eral barriers to i+itation that entrepreneurs
use.:. Identi% the conditions that %a$our %ranchisin& %ro+
the point o% $ie3 o% both the entrepreneur 3ith anopportunit to e2ploit and potential %ranchisees.
;. 0escribe the strate&ic actions that entrepreneursta6e to +ana&e in%or+ation as ++etr anduncertaint in the entrepreneurial process.
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 5/26
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
,EARNIN- OB ECTIVES*. E2plain 3h entrepreneurs o%ten start their
businesses on a s+all scale and e2pand i%the are success%ul.
<. E2plain ho3 alliances and partnerships 3ithestablished 1r+s help entrepreneurs toe2ploit their opportunities.
/). ,ist actions that entrepreneurs underta6e to
+a6e their ne3 $entures appear +orele&iti+ate# and e2plain 3h the ta6e theseactions.
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 6/26
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
=>hat sets us a&ainst one anotheris not our ai+s?the all co+e tothe sa+e thin&?but our +ethods#3hich are the %ruit o% our $ariedreasonin&.@
Saint E2uperWind, Sand and Stars # /<4<
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 7/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
0E ININ-
CO"PETITIVE A0VANTA-EA co+petiti$e ad$anta&e is anattribute that allo3s a 1r+# andnot its co+petitors# to capture thepro1ts %ro+ e2ploitin& anopportunit .
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 8/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
CO"PETITIVE A0VANTA-EE5ecti$e strate& to protect aco+petiti$e ad$anta&e!
Precludes others %ro+ i+itatin& thebusiness idea per%ectlAllo3s the entrepreneur to capture
the pro1ts %ro+ e2ploitin& theopportunit
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 9/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
BARRIERS TO
CO"PETITIONControllin& ResourcesEstablishin& ,e&al BarriersBuildin& a Reputation %or Satis% in&Custo+ersInno$atin& to Sta Ahead o% theCo+petition
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 10/26
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 11/26
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 12/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
BARRIERS TO I"ITATION Three Co++on Tpes o% Barriers!
/. Obtainin& Control o% Resources(. 0e$elopin& a Reputation F Brand
Na+e4. Inno$atin& to Sta Ahead o% the
Co+petition
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 13/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
CONTRO, O RESOURCESe Resources +a include!
,ease o% spaceE2clusi$e suppl F ser$ice contracts,e&al "onopol
Patent
-o$ern+ent ,icence
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 14/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
ESTAB,ISH AREPUTATION F BRAN0NA"E
Create -ood3illAd$ertise Hea$il
Create E2pectations
Reputation %or E2cellent Custo+erSer$ice
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 15/26
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 16/26
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 17/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
ACTORS IN SE,ECTIN- A"AR ETBASE0 "ECHANIS"
Speed to market
nformationCapabilities
Cost
!arket"#ased !e$hanism
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 18/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
OPPORTUNIT E P,OITATION
,icensin&?contract to use abusiness idea in return %or a %ee
ranchisin&?ri&ht to pro$ide ane2istin& 1r+8s product or ser$ice toend custo+ers
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 19/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
PURPOSE O ,ICENSIN-
/. Unable to obtain suJcientresources to brin& idea to +ar6et
Pri+aril cash(. ,ac6 critical capabilities
no3led&e o% +ar6et# +anu%acturin&F distribution# sales e2pertise
4. Guic6 +ar6et entr Ti+e to asse+ble the entire $aluechain
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 20/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
PRO0UCT ATTRIBUTES
,icencees pre%er products 3ith!/. Intellectual propert protection(. Co+pellin& e$idence that it 3ill
sell4. ,on& li%e e2pectanc and
technolo& 3ith potential to ser$eas basis %or +ultiple products.
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 21/26 Copyright © 2008 by Nelson, a division of Thomson Canada Limited
RANCHISIN-
Per+its &eo&raphic e2pansionE2pansion 1nanced b ranchisees
Capital CostsHu+an Resources
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 22/26
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
"ANA-IN- UNCERTAINTAN0 IN OR"ATIONAS ""ETR
-ro3th %ro+ s+all scaleor+in& alliances and partnerships 3ith
established 1r+sCreatin& le&iti+ac %or the opportunitand the ne3 $enture
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 23/26
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
STARTIN- S"A,,
Uncertaint and in%or+ationas ++etr +a6e it necessar %or
entrepreneurs to start s+all becauseEntrepreneurs +ust sel% 1nanceIn$estors don8t &i$e lar&e su+s all at
onceEntrepreneurs +ust +ini+iKe ris6
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 24/26
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
BENE ITS O A,,IANCES
/. Opportunities are short li$edEntrepreneurs lac6 ti+e and L tocreate in%rastructure
(. Accessin& international +ar6ets4. ,ac6 o% capital7. Increases reputation
Brand Na+e
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 25/26
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
POTENTIA, HAMAR0S OA,,IANCES
/. E2ploitation o% siKe and po3er
(. "isrepresentation o% assets Fcapabilities
4. Sun6 in$est+ents utiliKed to
e2tract a di5erent deal7. >ithheld pro+ised resources F
assets
8/11/2019 Entrepreneurship Lecture 11
http://slidepdf.com/reader/full/entrepreneurship-lecture-11 26/26
Copyright © 2008 by Nelson a division of Thomson Canada Limited
IT8S ,E-IT
Entrepreneurs de+onstrate thele&iti+ac o% their ideas b
Sho3in& con%or+it to e2istin& rulesand nor+sI+itatin& the routines and procedures
o% e2istin& 1r+sEn&a&in& in collecti$e actionsObtainin& certi1cation
Top Related