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ENT422: The Role of Entrepreneurship in Value Creation in Large and Small Enterprises Lecture 8

Learn how to develop competitive advantages in entrepreneurship to ensure success and profitability. Discover strategies for overcoming market uncertainty, capital needs, and venture size. Explore real-life examples and essential skills for entrepreneurs.

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ENT422: The Role of Entrepreneurship in Value Creation in Large and Small Enterprises Lecture 8

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  1. ENT422: The Role ofEntrepreneurship in Value Creation in Large and Small EnterprisesLecture 8

  2. Planning for a Competitive Advantage for a New Venture Reading: Baron, Chap. 10 Strategy: Planning for Competitive Advantages

  3. Third Step ofEntrepreneurial Process (Cont.) Launching a New Venture

  4. Recall that … • An “IDEA” is not an “OPPORTUNITY” UNTIL VALIDATED • Direct Personal Selling, is the Central Component of Entrepreneurial Marketing But, the Entrepreneur needs “Competitive Advantages” to become Profitable and Successful

  5. Competitive Advantages are ATTRIBUTES that enable a firm to exploit OPPORTUNITIES • Competitive Advantages prevent others from imitating Ideas/Opportunities • Four Strategies for developing Competitive Advantages are: • Controlling Resources – Information and/or Technology • Establish Legal Barriers – Patents or Licensing • Building a Reputation for Satisfying Customer Needs • Continuous Innovation of Products or Services

  6. Franchising can create a Competitive Advantages Using Another’s Idea to Reach End Customers by: • Minimizing Cost • Accelerating the Time to Reach Markets • Utilizing the Capabilities and Assets of Others • Strategies Used to Overcome Market Uncertainty and Venture Size are: • Starting Small, Self-Finance and Gain Market Experience • Forming Alliances and Partnerships to Establish a Value Chain Quickly Overcoming Capital Needs and Legitimacy

  7. Competitive Advantages:An Application of The Principles Pro Venture (Far East) Ltd.

  8. The Company • Started small about five years ago (three partners), was self-financed ($500K) • Licensed a patent on a small device enabling self-applied facials • Outsourced manufacturing, distribution, marketing and administration • Continued product development; now have four products • Has a portfolio of 35+ patents and distribution in 37 countries • Developed a reputation for quality and reliability and satisfying customer requirements • Has controlled resources relating to information and technology

  9. A Review of Your ProjectsExercise 6 Team 1: Alma, Ghazaleh and Nicolle Team 2: Rachel, Shelli and Athena Team 3: Allan, Paul, Konrad and Eric Team 4: Seema, Jason, James and Ashanti Team 5: Mike, Mlen-Too and Salim Team 6: Steve, Bashar and Krishna

  10. Assignment for November 16 • Lecture: Essential Skills Needed to Build a New Business • Reading: Baron Chap.12 Essential Skills for Entrepreneurs • Case: When Everything Isn’t Half Enough (Baron, Pg. 391). Be prepared to discuss the questions in class. • Workshop: Exercises 9-12 should now be completed. Questions welcome.

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