Discussing the enterprenurial strategies under the shade of enterpreneurship

1. Entrepreneurship
A strategic viewpoint

2. Omer Shahzad
MB-12-08

3. What is
Entrepreneurial
Strategy?

4. The Entrepreneurial mystery
 Before
answering to the question , ―Can entrepreneurship be
taught?‖
 Entrepreneurship
is not a magic, it’s not a mystery and it has
nothing to do with the genes.
 It’s
a discipline and like any discipline, it can be learned and
improved upon.

5. What is Entrepreneurship?
 Entrepreneurship
 The
refers to a certain kind of activity.
heart of that activity is innovation: the effort to create
purposeful, focused change in an enterprise’s economic or
social potential.

6. What is Entrepreneurial Strategy?
 Entrepreneurial
Strategy is both deliberate and emergent.
 Strategy
is defined as the patterns of decisions that shape
the venture internal resource configuration and deployment
and guide alignment with environment.
 It’s
a plan of action for accomplishing goals.

7. The Entrepreneurial Strategies
 Just
as entrepreneurship requires entrepreneurial
management, so it requires practices and policies outside, in
the marketplace. It requires entrepreneurial strategies.
 These
strategies are clear and there are specifically four
entrepreneurial strategies:
 Being first with the most
 Hitting them where they ain’t
 Occupying a specialized niche
 Changing the economic characteristics of a
product, market or industry

8. Applying the Strategies
 The
four entrepreneurial strategies are not mutually
exclusive.
 Each
fits certain kinds of innovation and does not fit others.
 Each
requires specific behaviors on the part of entrepreneur.
 Finally
each has its own limitations and carries its own risks.

9. Being First With The Most
• For
this entrepreneurial strategy the entrepreneur aims at
leadership.
• Being
first with the most does not necessarily aims at
creating a big business right away, though often this is
indeed the aim.
• But
it aims from the start at a permanent leadership position.

10. Case: The Mayo Clinic
• Not
every ―Being First With The Most‖ strategy needs to aim
at creating a big business, though it must always aim at
creating a business that dominates its market.
• Two
brother surgeons decided to establish a medical center
based on totally new concepts of medical practice and
especially on building teams in which outstanding specialists
would work together under a coordinating team leader. They
were the Mayo Brothers.
• They
aimed from the beginning at the dominance of the
field, at attracting the outstanding practitioners in every
branch of medicine and at attracting patients.

11. Being First With The Most
• Being
first with the most requires an ambitious aim;
otherwise it is bound to fail. It always aims at creating a new
market or a new industry.
• In
the case of Mayo Clinic, Being First With The Most aims
at creating a quite different and highly unconventional
process.

12. Being First With The Most
• As
because Being First With The Most aims at creating
something truly new and truly different.
• The
implementation of this strategy requires thoughtful and
careful analysis. This strategy needs to hit right on target or
it misses altogether.
• And
once launched, the Being First With The Most strategy
is difficult to adjust or to correct.

13. Hitting Them Where They Ain’t
• This
entrepreneurial strategy is composed of 2 different
kinds of activities
 Creative Imitation—What the entrepreneur does is
something somebody has done already but it is creative
because the entrepreneur applying the strategy of creative
imitation understands what the innovation represents better
than the people who made it
 Entrepreneurial Judo—This strategy aims at obtaining a
leadership position and eventually dominance. But it does
not do so by competing with the leaders– or at lest not
where the leaders are aware of competitive challenge or
worried about it.

14. Case: IBM v/s Apple
• IBM
practiced creative imitation with the personal
computer, the idea was though of apples.
• Everybody
at IBM knew that a free-standing computer was
uneconomical and expensive.
• IBM
immediately went to work to design a machine that
would become the standard in the computer field and
dominate or at least lead the entire field.
• The
result was the PC. And within 2 years it had taken over
the Apple leadership in computer world, becoming the
fastest selling brand.

15. Anjum Fayaz
MB-12-07

16. Occupying a Specialized Niche
•
The entrepreneurial strategies discussed so far, being first with the
most, hitting them where they ain’t, all aim at market or industry
leadership. The niche strategy aims at control.
•
The strategies discussed earlier aim at positioning an enterprise in
a large market or a major industry. The entrepreneurial strategy
aims at obtaining a practical monopoly in a small area.
•
There are 3 niche strategies:
 The toll-gate strategy
 The specialty skill strategy
 The specialty market strategy

17. The Toll-Gate Strategy
• The
toll gate position is the most desirable position a
Company can occupy. But it has stringent requirements:
 The product has to be essential to a process
 The risk must be greater than the cost of the product
 Market must be limited that whoever occupies it, first preempts it

18. Case: Alcon Company
• Alcon
Company is the best example of the Toll-Gate
Strategy.
• Alcon
Company developed an enzyme to eliminate the one
feature of the standard surgical operation for senile
cataracts.
• Once
this enzyme has developed and patented, it had a tollgate position.
• Thus
it became essential for the process and fulfills the
requirements of the strategy.

19. The Specialty Skill Strategy
• The
Specialty Skill Strategy is a highly–focused niche
strategy where unique and highly specialized skills are
necessary.
• Specialized
skills can put the companies ahead in their field
and nobody has the worth to challenge them. They become
the standard.

20. The Specialty Market Strategy
• The
Specialty Market Strategy is a niche strategy where
unique and highly specialized knowledge of a market is
necessary.
• Specialty
market can be found by looking at a new
development and determining the resources that would give
a unique niche.

21. Case: Automated Baking Ovens
• In
England and Denmark there are 2 major companies who
produce and supply the automated baking ovens for cookies
and crackers.
• There
are a dozen of other companies producing the same
and there is nothing technical about that.
• But
these two companies know the market, they know every
single major baker in the market and every single major
baler knows them.

22. Waqas Javaid
MB-12-05

23. Changing The Economic
Characteristics
• In
the previously mentioned strategies, the aim of
entrepreneur was innovation but here the strategy itself is
the innovation.
• The
product or a service it carries may be old and have
been around for a long time but this strategy converts this
old and existing product or service into something new.
• It
changes its utility, its value, its economic characteristics
and sometimes even it s physical shape and value.

24. Purpose Behind The Strategy
• All
the strategies mentioned have one thing in common–
they create a customer. And that is the ultimate purpose of a
business.
• This
is done by the four different ways:
 By creating utility
 By pricing
 By adapting to the customers social and economic reality
 By delivering value to the customers

25. Strategy is not Law
• Many
of the entrepreneurs place their strategies on a
pedestal. Once they have the plan on the paper, they try not
to stray from it.
• They
have a belief that sticking to their plans will send a
positive gesture to the customers, investors and employees
and changing the plan would undermine their credibility.
• Even
sometimes it seems like entrepreneurs are more
interested in pursuing their original strategy that keeps the
business afloat.

26. Strategy is not Law
• The
harder it has been for a Company to work out its
strategy, the more trouble it has abandoned.
• An
entrepreneur must be smart enough to recognize when
they have to change the course and they shouldn't hesitate
to do so.
• This
doesn’t means that a good strategy is unimportant, fact
is that in the course of day-to-day business, you don’t have
the luxury of standing pat . Sometimes you have to shift
from one strategy to another.

27. Strategies Benefits
• Formulating
a strategy helps the firm to develop assets such
as know-how and reputations that require repetition and
constancy of effort.
• A strategy
defines the boundary condition or envelope within
which new initiative are more likely to result in synergies
than of they were randomly selected.

28. Case: Wal-Mart
• Sam
Walton was an avid innovator who started the long
departmental chain of Wal-Mart.
• Today’s
Wal-Mart is the result of many years of continuous
change and innovative ideas.
• But
all his experiments fit a long term strategy of low
cost, mass market, discount distribution, and thus provided
with significant competitive advantages.

29. Implementation of Strategies
• The
quality of implementation matters at least as much as,
and sometimes more than, the formulation of rules and
policies.
• A typical
strategy resembles a map of directions. These
directions are of value while the execution is routine.
• It
also requires exceptional determination, technique,
endurance and the ability to make judgments under difficult
conditions.

30. Effective Implementation of Strategies
Appropriate
Resource Allocation
Building a
Responsive
& Growing
Organization
Strategic
Leadership
Building Corporate
Culture to Fit
Strategy
Developing Policies
to facilitate
implementation
Effective
Strategy
Implementaction
Rewards
Linked to Performance
Introduction of
Best Practices
Systems
and
Procedures

31. Concluding Up
• The
goal of practicing and implanting the strategies and
building an enduring company derives from what Joseph
Schumpeter described as:
 The dream and will to found a private kingdom
 The will to conquer, to succeed for the sake not of the fruits
of success but of success itself
 The joy of certain, of getting things done

32. Thank You
for being such a patient listener
and
listening us for so long