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Is the industry capital intensive?. Objectives Examine industry structure, with a focus on capital intensity, in the context of entrepreneurial industry.

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Presentation on theme: "Is the industry capital intensive?. Objectives Examine industry structure, with a focus on capital intensity, in the context of entrepreneurial industry."— Presentation transcript:

1 Is the industry capital intensive?

2 Objectives Examine industry structure, with a focus on capital intensity, in the context of entrepreneurial industry status Explore the impact of capital intensity on your success as an entrepreneur

3 Exploring industry structure With industry conditions framing knowledge and demand factors, it’s important to understand industry status –Industry status addresses industry lifecycle and industry structure with an emphasis on growth opportunities and industry evolution By studying industry structure, aspiring entrepreneurs can assess the industry’s timeliness for new entrepreneurial entrants

4 Macroeconomic Change Entrepreneurial Motivation Entrepreneurial Behavior Industry Condition Industry Status Industry lifecycle Industry structure Opportunity Identification Value Curve Competition The Opportunity Analysis Canvas TM Entrepreneurial Mindset

5 Defining industry structure “the nature of barriers to entry and competitive dynamics within the industry” Capital intensity Advertising intensity Company concentration Average company size

6 Capital intensity defined Refers to the amount of money required to enter and compete in the industry –An industry that is expensive to enter has high capital intensity (i.e., automotive manufacturing) –Industries that are inexpensive to enter have low capital intensity (i.e., a website providing movie reviews)

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18 How can aspiring entrepreneurs participate in commercial cleaning? Start a commercial cleaning company Start a technology company –Develop an online training platform to support new commercial cleaners –Develop an online platform to support the marketing and business operations of commercial cleaners –?–?

19 Summary By studying industry structure, aspiring entrepreneurs can assess the industry’s timeliness for new entrepreneurial entrants –And better understand how to compete Low capital intensity presents a more affordable opportunity for new entrants to enter and compete effectively –Also presents a lower barrier to entry for current and near-future competitors


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