3. Entry wedges
An entry wedge in business not more different than making a wedge for
your venture in an industry
4. Entrepreneurship and strategy
• “The patterns of decisions that shape the venture’s internal
resource configuration and deployment and guide alignment
with the environment.”
• “Patterns of decisions” means both strategy formulation and
strategy implementation.
9. Business models and strategy
• Who are the customers?
• What do the customers value?
• How does our business make money?
• What is the underlying economic logic of the venture?
11. Business models
Business Model Name Business Model Story
Business to Business (B2B) Selling to commercial organizations
directly
Business to Customer (B2C) Selling to final users and consumers
directly
Business to Business to
Customer (B2B2C)
Selling to commercial organizations and
then selling
through directly to final users and
consumers
Clicks and Bricks Selling through both the Internet and
traditional business
location with a physical presence
Mash-ups Selling a Web-based application that
mixes data from
different online sources
12. Major Wedges
• New product or service
• Parallel competition
• Franchising
13. New product or service
• Most potent entry wedge
• Truly new products and services are relatively rare.
• Typically, new products have a lower failure rate than new
services, primarily because most service organizations face
lower entry barriers.
• Ventures that initially offer a new product sometimes follow
up with a related service
• Success with this strategy requires a concentrated effort at
being comprehensive and innovative
14. Parallel Competition
• “me too” strategy that introduces competitive duplications
into the market.
• These duplications are parallel, not identical, to existing
products or services.
• can be done with a small innovation or a variation in an
already well accepted and well-understood product line or
service system.
• Most retailing start-ups, for example, enter with the parallel
competition wedge
15. Franchising
• Twist on both the new product and me-too wedges
• Franchising takes a proven formula for success and expands it.
• For the franchisor, franchising is a means of
• Expanding by using other people’s money, time, and energy to
sell the product or service.
• Franchisee is pursuing a me-too strategy
16. Rent seeking
• In economics and in public-choice theory, rent-seeking
involves seeking to increase one's share of existing wealth
without creating new wealth
17. FIRST-MOVER AVANTAGES
In marketing strategy, first-mover advantage, or FMA, is
the advantage gained by the initial ("first-moving") significant
occupant of a market segment.
18. Sources of First-Mover Advantage
• Having prime physical locations
• Having technological space
• Having customer perceptual space
• Having an industry with standard setting
• Developing switching costs
• Generating lead time and learning
