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Unit 6

The document discusses strategies for generating and exploiting new entrepreneurial strategies. It outlines 6 key stages of an entrepreneurial strategy: 1) generating a new entry strategy, 2) exploiting the new entry strategy, 3) obtaining feedback from the new strategy, 4) adapting products based on feedback, 5) ensuring availability and security, and 6) implementing a low price strategy. It also discusses strategies for reducing risk when entering new markets such as using a market scope strategy, imitation strategy, and managing perceived newness.

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Manuel Vita
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27 views13 pages

Unit 6

The document discusses strategies for generating and exploiting new entrepreneurial strategies. It outlines 6 key stages of an entrepreneurial strategy: 1) generating a new entry strategy, 2) exploiting the new entry strategy, 3) obtaining feedback from the new strategy, 4) adapting products based on feedback, 5) ensuring availability and security, and 6) implementing a low price strategy. It also discusses strategies for reducing risk when entering new markets such as using a market scope strategy, imitation strategy, and managing perceived newness.

Uploaded by

Manuel Vita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Entrepreneurial Strategy Generating

and Exploiting New Strategies


Unit 6
New Entry
Offering a new product to an established or new market.
Which countries, which segments, how to manage and
implement marketing effort, how to enter
i)with intermediaries or directly, with what information.
ii)Sourcing - whether to obtain products, make or buy?
iii) Investment and control - joint venture, global partner.
to enter a new market entrepreneur need to start analysis
of,
Market… find market information.
Product information
Match existing products to markets - air, sea, rail, road.
Offering New products
Product management
Manufacturing specifications - Labeling - Packaging -
Production control - Market information(for the purpose of
update the market.
Price support - Establishment of prices - Discounts - Distribution
and maintenance of pricelists - Competitive information
Promotion/selling support - Advertising - Promotion - Direct
mail - trade shows - Printing - Selling (direct) - Sales force - Sale
or returns
Financial support - Billing, collecting invoices - voucher -
Planning, scheduling budget data – Auditing
Stages of entrepreneurial strategy
An entrepreneurial strategy has six Key Stages
1.Generation of a New Entry Strategy
2.Exploitation(use) of New Entry Strategy
3.A feedback loop from the New strategy
4. Product adaptation strategy - modifications
5.Availability and security strategy.
6. Low price strategy -
1. Generation of a new Entry Opportunity
Resources as a source of Competitive Advantage: Understanding where a sustainable
competitive advantage comes from will provide some insight into how entrepreneurs can
generate new entries that are likely to provide the basis for high firm from performance over
an extended period of time.

Entrepreneurial Resources: The ability to obtain, and then recombine, resources into a
bundle that is valuable, to both employees and businessman. Entrepreneurs combines the
resources into such a different ways as this bundle of resources provides a firm its capacity
to achieve superior performance. For Example: A high skilled workforce will be miss use if
the organization’s culture, teamwork, communication does not support them.

Market Knowledge: Possession of Information, technology, know-how, and skills that


provide insight into a market and its customers .Technological Knowledge: Possession of
information, technology, know-how and skills that provide insight into ways to create new
knowledge.

Window of Opportunity: The period of time when the environment is favorable for
entrepreneurs to exploit a particular new entry
2. Entry exploitation competitive
advantages of ‘being first’
First mover develop a cost advantage.
First mover face less competitive rivalry.
First movers can secure important channels.
First movers are better positioned to satisfy customers.
First mover gain expertise through participation.
Disadvantages of ‘Being First’ Demand Uncertainty:
Considerable difficulty in accurately estimating the
potential size of the market, how fast it will grow, and the
key dimensions along which it will grow.
Uncertainty of Customers: Customers may have
considerable difficulty in accurately assessing whether the
new product or service provides value for them.
3. Feedback loop strategy
Feedback loop strategy indicates to study as a whole
market and to find the behaviour of customer ,that
customer can take satisfaction or they are dissatisfy with
using the product.
4. Product adaptation strategy -
modifications
The term "product adaptation" can be used to describe a
"follower mentality" in product innovation strategy or a
particular aspect of business development. The need to
develop an adaptation strategy can lead to changes in
pricing, delivery and packaging. Ultimately, creating an
effective product. Adaptation strategy is a critical factor for
all businesses that wish to attract a dynamic customer.
5.Availability and security strategy
The security methodology described in this document is
designed to help security professionals develop a strategy
to protect the availability, integrity, and confidentiality of
data in an organization's information technology (IT)
system
6. Low price strategy
Establishing a relatively low price for a product or
service, usually to stimulate demand and acquire
market share. This makes the most economic sense for
the seller when there are significant economies of scale
achievable from high volume production, or when the
buyers are price sensitive and the seller has few
competitive advantages.
What is risk reduction strategy

To reduce the risk of the new market place entrepreneur


need to use the following important strategy to reduce the
risk of market. Market scope strategy.
Imitation strategy.
Managing newness.
Market scope strategy
A choice about which customer group to serve Narrow
scope strategy use. Broad scope strategy.
Imitation strategy
Imitation strategy is that strategy which most of
entrepreneur follow it for the purpose of that no one can
follow the activities of the business. It means provide those
service which no one can copy it.

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