COURSE TITLE: ENTREPRENEURSHIP

AND MARKETING

Course Code: MS434

Course Instructor: Dr. Abid Ullah

Department of Management Sciences
Ghulam Ishaq Khan Institute Of Engineering Sciences and Technology
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GENERATING AND EXPLOITING NEW ENTRIES

NEW ENTRY
Offering a new product to an established or new market, offering an
established product to a new market, or creating a new organization.
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GENERATING AND EXPLOITING NEW ENTRIES

GENERATION OF A NEW ENTRY OPPORTUNITY

Resources as a Source of Competitive Advantage
 Valuable when it enables the firm to pursue opportunities, neutralize
threats, and offer products and services that are valued by customers.
 Rare when it is possessed by few, if any, (potential) competitors.
 Inimitable when replication of this combination of resources would be
difficult and/or costly for (potential) competitors.
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GENERATING AND EXPLOITING NEW ENTRIES

Market Knowledge
Possession of information, technology, know-how, and skills that
provide insight into a market and its customers.
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GENERATING AND EXPLOITING NEW ENTRIES

Assessing the Attractiveness of a New Entry Opportunity

 Prior Knowledge and Information Search
 CHAPTER 3
GENERATING AND EXPLOITING NEW ENTRIES

Window of Opportunity
The period of time when the environment is favorable for entrepreneurs
to exploit a particular new entry.
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GENERATING AND EXPLOITING NEW ENTRIES

Comfort with Making a Decision under Uncertainty

 Error of commission (Negative outcome from Acting)
 Error of omission (Negative outcome from not acting)
 CHAPTER 3
GENERATING AND EXPLOITING NEW ENTRIES

ENTRY STRATEGY FOR NEW ENTRY EXPLOITATION

• First movers develop a cost advantage
• First movers face less competitive rivalry
• First movers can secure important channels
• First movers are better positioned to satisfy customers
• First movers gain expertise through participation
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GENERATING AND EXPLOITING NEW ENTRIES

Environmental Instability and First-Mover (Dis)Advantages

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GENERATING AND EXPLOITING NEW ENTRIES

Demand Uncertainty
Considerable difficulty in accurately estimating the potential size of the
market, how fast it will grow, and the key dimensions along which it will
grow.
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GENERATING AND EXPLOITING NEW ENTRIES

Technological Uncertainty
Considerable difficulty in accurately assessing whether the technology
will perform and whether alternate technologies will emerge and
leapfrog over current technologies.
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GENERATING AND EXPLOITING NEW ENTRIES

Adaptation
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GENERATING AND EXPLOITING NEW ENTRIES

Customers’ Uncertainty and First-Mover (Dis)Advantages

 Uncertainty for customers
Customers may have considerable difficulty in accurately assessing
whether the new product or service provides value for them.
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GENERATING AND EXPLOITING NEW ENTRIES

Lead Time and First-Mover (Dis)Advantages

Lead time
The grace period in which the first mover operates in the industry under
conditions of limited competition.
 CHAPTER 3
GENERATING AND EXPLOITING NEW ENTRIES

Lead Time and First-Mover (Dis)Advantages

 Building customer loyalties.
 Building switching costs.
 Protecting product uniqueness.
 Securing access to important sources of supply and distribution.