Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Chapter 4 Understanding your Business Model and Developing your Strategy Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Basic strategy categories are: Differentiation Low cost Niche Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Amazon.com’s Revenue Model Total revenues Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Amazon. com’s cost model Total costs and expenses Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Several key aspects about capturing a first mover’s advantage You have to be first (or very early) into the market You need to capture a large percentage of the market quickly You need to create switching costs so the customer will stick with you Very expensive, hard to win First Movers rarely win Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Attributes of winning strategies Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
The people are what Matters Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Entry Strategy Benchmark Devise Initial Market Test Create a Platform Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © The Entrepreneurial Firm International Expansion Process Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. © Means to expand globally Pros Cons Technology Transfer - Reduces entry costs - Risk of losing the technology Technology Licensing - Generates revenue - Conserves resources - A lost opportunity to extend your own brand Outsourcing - Cost-saving Exporting Cheap Easy Additional costs in after-sales support and transportation Moral hazard Foreign Direct Investment (FDI) - Physical presence - Control of assets - Expensive Franchising - Licenses an operational system - Risk of damaging the brand name Venture financing - Both an enabling and an enacting mechanism - Often leads to mergers and acquisitions with foreign companies Mergers and acquisitions (M&A) - Established infrastructure - Allow a company to grow and expand quickly - Very expensive Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©