need report based on 7 and 8 chapters only
Suresh-
CHAPTER8.pptxENTREPRENEURIAL STRATEGY AND COMPETITIVE DYNAMICS
CHAPTER 8
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FLOW OF PRESENTATION
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The first section examines the role of opportunity recognition in the new value creation process.
The second section addresses entrepreneurial strategies
The third section addresses competitive dynamics
Recognizing Entrepreneurial Opportunities
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Entrepreneurship involves value creation and the assumption of risk.
New value can be created in many contexts.
Startup ventures
Major corporations
Family-owned businesses
Ideas and opportunities can come from many sources.
The Four Species of Entrepreneurs
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THE FOUR SPECIES OF ENTREPRENEURS
Diamonds
These are charismatic with bold innovations that are aimed at transforming people’s lives. When they succeed, they change the game. The classic examples of this are Mark Zuckerberg and Ted Turner (Cable News Network (CNN), the first 24-hour cable news ).
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THE FOUR SPECIES OF ENTREPRENEURS
Stars
These are dynamic trendspotters and trendsetters who have big personalities and can see how society is changing and what the next hot trends will be. Example Steve Jobs.
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THE FOUR SPECIES OF ENTREPRENEURS
Transformers:
Some entrepreneurs see established industries as settings open for transformation. These transformers modernize systems, redefine operating rules, and change the way products are delivered. Examples include Howard Schultz of Starbucks. 232nd richest person in the United States, with a net worth of $3.7 billion as of April 2019
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THE FOUR SPECIES OF ENTREPRENEURS
Rocket Ships
These entrepreneurs are brilliant experimenters who aim to build businesses that are evermore cheaper, faster, and more efficient. Examples include Michael Dell. He is ranked as the 20th richest person in the world by Forbes, with a net worth of $37.6 billion as of June 2019.
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Recognizing Entrepreneurial Opportunities
For an opportunity to be viable it must have four qualities:
1. Attractive There must be market demand for the product or service.
2. Achievable It must be practical and physically possible.
3. Durable It must be attractive long enough for the development and deployment to be successful.
4. Value-creating The benefits must surpass the cost of development by a profitable margin.
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Entrepreneurial Resources
Resources are essential for entrepreneurial success.
Financial resources Bank financing, public financing,
Human capital Bankers, venture capitalists, and angel investors
Social capital Crowdsourcing
Government resources
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Social capital Crowdsourcing
Over 100,000 projects have been completed through crowdspring. “We have clients chasing good designers rather than desperate designers chasing work,” says Kimbarovsky. They now bill themselves as “the world’s #1 marketplace for logos and graphic design.”
CrowdSpring.com
If at least 25 designs come in, buyers are obligated to buy one, even if they don’t like any of them; if fewer than 25 come in, buyers can get their money back. 15 % goes to CrowdSpring.com
Chicagoans Ross Kimbarovsk
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Entrepreneurial Leadership
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Entrepreneurial leadership needs:
Courage
Belief in one’s convictions
Energy to work hard
Leadership personality traits:
Vision
They require patience, stamina, and a willingness to work long hours.
Commitment to Excellence
Entrepreneurial Strategy
New ventures require an entrepreneurial strategy.
What are the industry conditions?
What are the barriers to entry? (Five-forces analysis)
What is the competitive environment?
Might there be retaliation by established firms?
What are the market opportunities?
How should the firm actually enter a new market?
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ENTREPRENEURIAL STRATEGY (SPICE )
TJ Scimone had an idea to develop better designed, and aesthetically pleasing cutting tools
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FRIDABABY AIMS TO MAKE PARENTING EASIER
MediFrida: a combination syringe and pacifier that makes giving liquid medicines easier
NailFrida: a nail clipper designed to make clipping a baby’s nails easier
DermaFrida: a bath brush to keep a baby’s skin smooth and itch-free
Fridababy is one of Amazon’s top baby-care brands.
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Competitive Dynamics
Competitive dynamics helps explain why strategies evolve and reveals how, why, and when to respond to the actions of close competitors.
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Competitive Dynamics Model
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Motivation and Capability to Respond: The Network Systems Switch War
After Jayshree Ullal left the firm Cisco in 2008, she took on the role of CEO at Arista Networks. Arista has taken business from Cisco at a number of major customers, including Microsoft and Facebook. Its revenue grew nearly 500 percent from 2012 to 2016.
Cisco has also filed a lawsuit claiming Arista uses Cisco’s patented technology in its designs
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Types of Competitive Actions
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Strategic actions represent major commitments of distinctive and specific resources.
Tactical actions include refinements or extensions of strategies.
Likelihood of Competitive Reaction
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How a competitor is likely to respond will depend on:
Market Dependence
Competitor’s resources
Choosing Not to React: Forbearance and Co-opetition
Co-opetition
Related to forbearance (patience) is the concept of “co-opetition.” This is a term that was coined to suggest that companies often benefit most from a combination of competing and co-operating.
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TESLA ALLOWS COMPETITORS TO USE ITS PATENTED TECHNOLOGY
Tesla Motors has invited other firms who want to design and build electric cars to use Tesla’s proprietary technology.
For example, if multiple manufacturers adopt Tesla’s patents for charging stations. Electric cars accounted for less than 1 percent of all cars sold in 2013.
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TESLA MOTORS
The company specializes in electric car manufacturing and, through its, solar panel manufacturing.
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TESLA MOTORS
In August 2015, Tesla partnered with Airbnb to provide destination chargers at certain host houses, initially in California
Revenue: $2.6 billion
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REFERENCES
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20 Mar. 2011
Brown, Joshua (March 20, 2011). "Michael Dell's Very Big Stock Purchase". The Reformed Broker. Retrieved October 15, 2011.
15 Oct. 2011
Calnan, Christopher (February 7, 2010). "Managing Michael Dell's multibillions". BizJournals. Retrieved October 15, 2011.
30 Oct. 2013
Guglielmo, Connie (October 30, 2013). "Dell Officially Goes Private: Inside The Nastiest Tech Buyout Ever". Forbes.
2014
SRottenberg, L. 2014. The Four Species of Entrepreneurs. Wsj.com, October 4: np.
REFERENCES
Steiner, C. 2009. The creativity of crowds. Forbes, February 16: 62–66, www.crowdspring.com.
Brabham, D. C. (2008). "Crowdsourcing as a Model for Problem Solving an Introduction and Cases". Convergence: The International Journal of Research into New Media Technologies. 90.
Prpić, J., & Shukla, P. (2016). Crowd Science: Measurements, Models, and Methods. In Proceedings of the 49th Annual Hawaii International Conference on System Sciences, Kauai, Hawaii: IEEE Computer Society
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REFERENCES
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June
Ankeny, J. 2013. Sharp-sighted: Slice’s professional-grade tools don’t cut corners on safety or style. Entrepreneur. June: 23.
2017
King, R. 2017. Cisco’s feud with former star executive turns personal – and costly. wsj.com. August 17: np.
23 Oct. 2008
"Arista Networks Names Jayshree Ullal President and CEO, Andreas Bechtolsheim CDO and Chairman" (Press release). Arista Networks. 23 October 2008. Retrieved 12 June2014.
5 June 2014
"Arista Networks crushes IPO targets, soars after raising $226M". Silicon Valley Business Journal. 5 June 2014. Retrieved 25 September 2014.
5 Dec. 2014
^ "Cisco Sues Arista, a Rival Run by Former Cisco Employees". Business Insider. 5 December 2014. Retrieved 8 December 2014.
REFERENCES
Taylor, Dan (July 6, 2011). "Airbnb takes on Europe. Will it revolutionize the industry, again?". The Next Web.
Wauters, Robin (October 17, 2011). "Airbnb Checks In With Springstar For International Expansion". TechCrunch.
"Airbnb to open European HQ in Dublin". TheJournal.ie. September 13, 2013.
"Airbnb to open European HQ in Dublin". The Irish Times. September 13, 2013.
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THANK YOU
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