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Edited routes of entry to an optometric enterprise 1

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Transcript

  • 1. ROUTES OF ENTRY TO AN OPTOMETRIC ENTEPRISE Ms Rosmin Iqbal Hussain BOptom (UKM), CMBA (UNIMAS)
  • 2. Basic Entry Decisions
    • Which market?
      • Shopping / hypermarket complexes
      • Shoplots industrial area
      • Shoplots housing area
    • Timing of entry
      • Pioneering costs VS first-mover advantage
        • Bearing the cost vs the advantage
    • Scale of entry and strategic commitments
      • Scale of entry affects the nature of competition in the national market. Implications of risks and benefits must be weighed carefully
      • Entry in large mode: long term impacts that may be difficult to reverse due to large capital stuck at the premise furnitures
  • 3. Success Of The Biz Entry Choice?
    • UNIQUENESS (model---overall concept)
    • VIABILITY (chances of success---financial)
    • NICH MARKET (no competition---market demand)
    • CAN BE IMPLEMENTED (less hustle)
    • ATTRACTS INVESTORS (banks,etc.)
  • 4. First Mover Opportunities
    • Potential for First Mover Advantages may be found in:
      • New products
      • New processes
      • New markets
  • 5. First Mover
    • First-mover advantages:
      • Preemption of market position
      • Preemption of locations
      • Preemption of consumers’ perceptual space
    • First mover advantage can be important
      • Accumulated experience
    • First-mover disadvantages:
      • Pioneering costs
        • Extra cost for supplier to send to that location
        • Extra cost to buy / provide that product/services from supplier because it is a rare sought thing
      • Demand/ technology / customer uncertainty
    • Preempt = to do something that is difficult for others to follow/beat
  • 6. Follower Advantages
    • Late-movers can “free-ride” on the pioneering firm's
      • Investment in technology (product and process R&D)
      • Market development (e.g., buyer education)
      • Thereby avoid some of the costs and uncertainties associated with early entry (e.g., resolution of market uncertainty)
      • Technological discontinuities and inability of incumbents (already there biz) to adapt to a changing environment can provide "gateways" for followers
  • 7. Follower Advantages…cont
    • Free riding by late entrants
    • Technology
      • Diffusion of technology may make imitation cheaper than innovation
    • Buyer education
      • Enhanced consumers' awareness through pioneer's advertising benefits followers
    • Employee training
      • Followers may hire pioneer's trained employees; followers may emerge from pioneer's employment ranks. Knowledge spillovers.
  • 8. Follower Advantages…cont
    • First-mover technology and marketing strategy lock-in
    • Commitment to technology/mkting channel/product types & class
      • When technology uncertainty is high-- i.e., the 'industry standard' or the 'dominant design' are unsettled--first movers may be committed to the wrong technology
    • Discontinuities in technology and in customers' needs
      • Late entrants may be able to leapfrog the technology of the first movers, and/or use more effective marketing channels to appeal to consumers, thereby causing the market to shift away from the first movers
  • 9. To Pioneer Or Follow?
    • FIRST MOVER ADVANTAGES
      • Ability to define competitive rules
      • Reputation advantage
      • Ability to preempt and make it stick
      • Save on switching costs
      • Position on the learning curve
      • Superior access to channels and to inputs
      • Ability to define industry standard
  • 10. Lessons From Successful Pioneers
    • Exploit the sources of first mover advantages while avoiding the traps:
      • Preempt (block/prevent) opportunity for entry
      • Obtain patents or copyrights
      • Fill positioning gap
      • Minimize technological leakage
      • Retain employees
      • Develop organizational capabilities
      • Track the evolution of customer needs
      • Be prepared to cannibalize
      • Maintain flexibility
      • Study competitors