Generating

1
Generating Exploiting New Ideas

• Chapter 13

2
New Entry

• Definition
• New product to established or new market
• Established product to new market
• New organization

3
Generating New Entry Opportunity

• Resources
• Compound to increase success
• Three characteristics
• Valuable
• Rare
• Inimitable

4
Generating New Entry Opportunity

• Entrepreneurial Resource
• Knowledge
• Market knowledge
• Insight into market and customers
• Technological knowledge
• Insight into ways to create new knowledge
• Advance knowledge or invest in narrow purpose and
  found to have broader uses

5
Assessing the Attractiveness of New Entry
Opportunity

• Information and Knowledge on New Entry
• Advantages of knowledge
• Window of Opportunity
• Closing
• Comfort Deciding under Uncertainty
• Error of commission
• Error of omission
• Bottom line

6
Entry Strategy for First Movers

• Advantages
• Cost advantage
• Less competition
• Secure important channels
• Positioning to meet customer needs
• Gain expertise through participation

7
Environmental Instability First Movers

• Must fit resources with external environment
• Key success factors
• How does it relate to first movers?
• Emerging industries
• No rules!

8
Environmental Instability First Movers

• Demand Uncertainty
• Forecasting issues (MKT size)
• Demand shifts
• Why is it bad for first movers?
• Technological Uncertainty
• Capital outlays
• Leapfrogging technologies
• Why is it bad for first movers
• Adaptation

9
Customer Uncertainty First Movers

• Value concerns
• Uncertainty adverse
• Entrepreneur must reduce uncertainty
• Information advertising
• Comparison advertising
• Entering late advantages

10
Lead Time First Movers

• What is lead time?
• Why is it important?
• Barriers to entry
• Build customer loyalty
• Build switching costs
• Protect product uniqueness
• Secure access to important sources of supply and
  distribution
• CompetitionGood?!

11
Risk Reduction Strategies

• Market-Scope Strategy
• Narrow Scope
• Advantages
• Disadvantages
• Broad scope
• Advantages
• Disadvantages
• Imitation
• Franchising
• Me too strategy

12
Managing Newness

• Assets of newness
• Flexibility
• Adaptability
• Vs. existing organizations

• Liabilities of newness
• Costs with new tasks
• Overlap in jobs
• Communication