7.

Generic Strategies
Overall Cost Leadership
One of the ways entrepreneurial(án trép bơ né rì ầu) firms achieve success is by doing more with
less. By holding down costs or making more efficient use of resources than larger(la chờ)
competitors, new ventures are often able to offer lower prices and still be profitable. Thus, under the
right circumstances(sớ câm sờ ten sịt), a low-cost leader strategy is a viable alternative for some
new ventures. The way most companies achieve low-cost leadership, however, is typically different
for young or small firms.
Differentiation
Both pioneering(pai ân nia rìn) and adaptive entry strategies involve some degree of differentiation.
That is, the new entry is based on being able to offer a differentiated value proposition. In the case
of pioneers, the new venture is attempting to do something strikingly different, either by using a
new technology or by deploying(địp lói ìn) resources in a way that radically alters the way business
is conducted.
Focus
Focus strategies are often associated with small businesses because there is a natural fit between the
narrow scope of the strategy and the small size of the firm. A focus strategy may include elements
of differentiation and overall cost leadership, as well as combinations of these approaches. But to be
successful within a market niche, the key strategic requirement is to stay focused. Let’s consider
why that is so.
8. Combination Strategies
One of the best ways for young and small businesses to achieve success is by pursuing combination
strategies. By combining the best features of low-cost, differentiation, and focus strategies, new
ventures can often achieve something truly distinctive. Entrepreneurial(án trep rơn nớ rì âu) firms
are often in a strong position to offer a combination strategy because they have the flexibility to
approach situations uniquely
A similar argument could be made about entrepreneurial firms that differentiate. Large firms often
find it difficult to offer highly specialized products or superior customer services.
For nearly all new entrants, one of the major dangers is that a large firm with more resources will
copy what they are doing.
9. Competitive Dynamics
Competitive dynamics
—intense rivalry among similar competitors—has the potential to alter a company’s strategy. New
entrants may be forced to change their strategies or develop new ones to survive competitive
challenges by incumbent rivals.
New entry is among the most common reasons why a cycle of competitive actions and reactions
gets started.