ROUTES OF ENTRY TO AN OPTOMETRIC ENTEPRISE Ms Rosmin Iqbal Hussain BOptom (UKM), CMBA (UNIMAS)
Basic Entry Decisions <ul><li>Which market? </li></ul><ul><ul><li>Shopping / hypermarket complexes </li></ul></ul><ul><ul>...
Success Of The Biz Entry Choice? <ul><li>UNIQUENESS (model---overall concept) </li></ul><ul><li>VIABILITY (chances of succ...
First Mover Opportunities <ul><li>Potential for First Mover Advantages may be found in: </li></ul><ul><ul><li>New products...
First Mover <ul><li>First-mover advantages:  </li></ul><ul><ul><li>Preemption of market position </li></ul></ul><ul><ul><l...
Follower Advantages <ul><li>Late-movers can “free-ride” on the pioneering firm's  </li></ul><ul><ul><li>Investment in tech...
Follower Advantages…cont <ul><li>Free riding by late entrants </li></ul><ul><li>Technology </li></ul><ul><ul><li>Diffusion...
Follower Advantages…cont <ul><li>First-mover technology and marketing strategy lock-in </li></ul><ul><li>Commitment to tec...
To Pioneer Or Follow? <ul><li>FIRST MOVER ADVANTAGES </li></ul><ul><ul><li>Ability to define competitive rules </li></ul><...
Lessons From Successful Pioneers <ul><li>Exploit the sources of first mover advantages while avoiding the traps: </li></ul...
Upcoming SlideShare
Loading in...5
×

Edited routes of entry to an optometric enterprise 1

517

Published on

LPB

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
517
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Edited routes of entry to an optometric enterprise 1

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

    Clipping is a handy way to collect important slides you want to go back to later.

×