Gives immense knowledge over entrepreneurs strategy in order to capture the market .

1. ENTREPRENEURIAL
STRATEGY
V.Madhusudhan Goud
Assistant Professor
Department of Management Studies
GPCET, Kurnool

2. NEW ENTRY
It refers to -----------------
1.Offering a new product to an established or new
market
2.Offering an established product to a new market
3.Creating new organization
Entrepreneurial Strategy represents the set of
decisions, actions, and reactions that first generate,
and then exploit over time, a new entry in a way
that maximize the benefits of newness and
minimize its costs.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

3. ENTREPRENEURIAL STRATEGY: GENERATION & EXPLOITATION OF
NEW ENTRY OPPORTUNITIES
3
Knowledge
Other
resources
Resource
Bundle
Assessment of
New Entry
Opportunity
Entry Strategy
Risk
Reduction
Strategy
Organization
Firm
Performance
1.New Entry Generation 2.New Entry exploitation
3.Feedback loop of resources

4. GENERATION OF A NEW ENTRY OPPORTUNITY
Resources as source of competitive advantage
Men, machine, material and money with
organization culture it enhances communication,
team work and innovativeness.
1.Valuable: pursue opportunities , neutralize
threats and offer products and services that are
valued by customers
2.Rare: possessed by few, if any potential
competitors
3.Inimitable: replication of resources is difficult
/costly by competitors.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

5. CREATING A RESOURCE BUNDLE VALUABLE
RARE AND INIMITABLE
 Market knowledge: refers to the entrepreneurs’
possession of information, technology, know
how and skills that provide insight into a market
and its customers.
Eg: Market research
 Technological Knowledge: refers to the
entrepreneurs’ possession of information,
technology, know how and skills that provide
insight into to create new knowledge.
 Eg: Laser Technology
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

6. ASSESSING THE ATTRACTIVENESS OF A
NEW ENTRY OPPORTUNITY
Information on new entry:
1.Prior knowledge and information
search
2.Window of Opportunity-viable of
particular new entry is known as
entry of opportunity
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

7. COMFORT WITH MAKING A
DECISION UNDER UNCERTAINTY
Error of Commission: negative
outcome from acting
Error of omission: negative
outcome from not acting
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

8. DECISION TO EXPLOIT R NOT TO EXPLOIT THE
NEW ENTRY OPPORTUNITY
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V.MadhsudhanGoud,AssistantProfessor,
GPCET
Search
Knowledge
Preference for Error:
1.Omission
R
2.Commission
Level of Information
on new entry
Window of
opportunity still open
Comfort with making
decision under
uncertainty
Go/No decision
to exploit new
entry

9. ENTRY STRATEGY FOR NEW ENTRY EXPLOITATION
1.Cost advantage
2.Less competitive rivalry
3.Secure important channels
4.Better positioned to satisfy customers—select and
secure most attractive segments of a market,
position themselves at the centre of market
providing to identify and adapt changes in
product as industry standard.
5.Gain expertise through participation-like learning
design, monitoring changes, building up their
networks
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

10. FACTORS INFLUENCE DECISION TO ENTER THE
MARKET NOW R TO DELAY ENTRY
Cost advantage
Less Competition
Secure important channels
Prime position for customers
Expertise from participation
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V.MadhsudhanGoud,AssistantProfessor,
GPCET
Environmental Instability
Customer Uncertainty
Short lead time
First Mover
Advantages
First Mover
Disadvantages

11. ENVIRONMENTAL INSTABILITY-DISADVANTAGES
 Performance of the firm depends on the fit between its
bundle of resources and external environment. If fit is good
then superior performance or else poor.
 To obtain good fit, the entrepreneur must meet the key
success factors of the industry such as superior service,
reliability or lowest price. Or else marketing myopia.
 Environmental changes are highly in emerging industries.
 These are evaluated by-----Demand Uncertainty,
Technological Uncertainty and Adaption.
 Demand uncertainty by Over estimating like costs associated
with overcapacity or Under Estimating like losing to
competitors and not satisfying existing and new customers.
 Eg: Dell and Fog Deodorant
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

12. ENVIRONMENTAL INSTABILITY-DISADVANTAGES
 Technological Uncertainty takes place when existing does
not hold of present technology or else losses occurs in the
form of damage to entrepreneurs reputation, additional
R&D and Production costs.
 Sometimes reverse engineering also plays a vital role in
influencing the market. Like not estimating IPR(Intellectual
Property Rights) others will capture the market.
 Eg: Docutel for ATM machines later Honeywell and IBM
better services like electronically fund transfer.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

13. TECHNOLOGY UNCERTAINTY
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

14. ADAPTATION TAKES PLACE WHEN THEN
ENTREPRENEURS NOT HOLDING THE ON GOING
ENVIRONMENTAL CONDITIONS
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

15. CUSTOMERS UNCERTAINTY
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

16. LEAD TIME
 Definition: the grace period in which the first
mover operates in the industry under conditions of
limited competition.
 The lead time gives the entrepreneur a period of
limited competition to best prepare the firm for
when competition does increase.
 Barriers are -------------------------
1.Building Customer Loyalties
2.Protecting Product Uniqueness--IPR
3.Build Switching Costs—Eg: Pulla reddy sweets
4.Securing access to important sources of supply and
distribution
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

17. LEAD TIME
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

18. RISK REDUCTION STRATEGIES FOR NEW ENTRY
 Market scope Strategy: A choice about which
customers groups to serve and how to serve.
 Narrow scope strategy: offers a small products
range to a small number of customer groups in
order to satisfy a particular need.
 Eg: Veg-Restaurant
 Broad scope strategy: portfolio approach offering
large variety of products to diversified groups of
customers to satisfy needs.
 Eg: Veg and Non-veg Restaurant
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

19. IMITATION STRATEGIES
Involves copying the practices of other
firms, whether those other firms are in
the industry being entered or from
related industries.
An Imitation strategy cannot be rare
and inimitable.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

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V.MadhsudhanGoud,AssistantProfessor,
GPCET

21. ME TOO STRATEGY
 Copying the products that already exist and attempting to
build an advantage through mirror variations
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

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V.MadhsudhanGoud,AssistantProfessor,
GPCET

23. MANAGING NEWNESS
 New entry can occur through the creation of a new
organization.
 Challenges of new organization are--------
1.Face costs in learning new tasks
2.Cross roles and responsibilities for different tasks causes
gaps.
3.Communication within the organization both formal and
informal channels
 Managing new firm requires special attention to educating
and training employees .
 Unlike mature organizations have routines, systems and
processes that increase efficiency of its operations but in
new organizations it is different.
 Learning procedure should be continues.
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V.MadhsudhanGoud,AssistantProfessor,
GPCET

24. Thank you
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V.MadhsudhanGoud,AssistantProfessor,
GPCET