Entrepreneurial Strategy Generating & Exploiting New Entries

New Entry Offering a New product to new or established market Offering an established product to a new market Creating a new organization (whether the product or the market is new or not)

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

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.

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

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

Strategies for Growth & Managing Implications

Growth Strategies

Diversification Backward Integration Forward Integration & Horizontal Integration Related Unrelated

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

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

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

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