The key steps of Strategy

Formulation for New

Business Ventures
 Identity
Name : CATHERINE A.
AGAPITO
Class : BSBA -1A
Subject : Entrepreneurship
Email :
catherineagapito16@gmail.com
Section 1
Section 1
A resource-based theory of entrepreneurship
The market-led (or industrial organization)
perspective is rather deterministic:
competitive advantage is ascribed to
external characteristics rather than to the
entrepreneur’s or venture’s competencies
and resource-based deployments.
In the resource-based perspective,
competitive advantage is viewed from the
perspective of distinctive resources and
Simple Formula:
1. Buy (or acquire) resources and skills
cheaply.
2. Transform the resources into a product
or service (production.
3. Deploy and implement(strategy).
4. Sell dearly (for more than you paid-
value creation)
Section
 Resource Types
1 Financial resources 5 Reputation
Organisational
2 Physical resources 6 resources
3 Human resources
Technological
4 resources
Section 3
Section 3
Attributes of Strategic Resources
Strategic resources
• create competitive advantage, whereas
common resources are necessary for
carrying out the firm’s usual activities but
provide no specific advantage.
• Matters because they are the basis of the
firm’s competitive advantage, which in turn
determines its ability to earn a profit.
Firms possess and use resources that are:

1 Valuable

2 Rare

3 Non-substitutable
4 Hard to Copy
 Create a competitive Resource dimension No competitive
advantage advantage

Not suited to the

Exploits opportunity: Valuable environment:
neutralizes threats
common

Unique: costly to
procure
Rare Readily available:
inexpensive

No substitution through Non- Substitution through

similar modes or similar modes or
different modes substitutable different modes
Unique history: Ordinary history:
causality ambiguous: Hard causality known:
socially complex Copy socially simple
Section 4
Section 4
The building blocks of the customer interface
include:
• The target customer- describes the
segments of customers a company wants
to offer value.
• The distribution channel- describes the
various means of the company to get in
touch with its customers.
• The customer relationship- explains the
kind of links a company establishes
Section 4
The elements of the firm infrastructure include:

• Core resources and competencies

• Key processes
• The partner network
The profit formula consists of the following:

• Revenue streams
• Cost structure
• Margin model
Section 5
Section 5
Business models fulfill four main roles:

• Understand and share

• Analyse
• Manage
• Prospect
Thank You