Corporate Entrepreneur

Some concepts

 Corporate Entrepreneur: Corporate entrepreneur is a person who

demonstrates her or his innovative skill in organizing and managing a
corporate undertaking.

 Corporate Undertaking is a form of business organization which is registered

under some statute or Act which gives it a separate legal entity.
 A trust registered under the Trust Act, or a company registered under the
Companies Act are examples of corporate undertakings.

 A corporate entrepreneur is thus an individual who

 plans,
 develops and
 manages

a corporate body.
 So what is Corporate Entrepreneurship?
A process by which teams within an established company
conceive,
foster,
launch and
manage

a new business that is distinct from the parent company but leverages the parent's
assets, market position, capabilities or other resources.
 Another take on Corporate Entrepreneurship
An approach used to develop
new business opportunities,
products,
or services

within an organization.

This process seeks to

create value,
drive revenue growth, and
encourage innovation

inside the company through entrepreneurial thoughts and actions.

 Intrapreneurship
They are entrepreneurs who catch hold of a new idea for a product, service, or
process and work to bring their vision to reality within the framework of the
organisation.

They are a valuable asset of the organisation, inspiring others.

Intrapreneurship is essentially an organizational setup that lets an employee act

like that an entrepreneur.

These employees are given the task to create and develop new products.

Corporate entrepreneurship and intrapreneurship go hand in hand

How does Intrapreneurship help a corporate?
 Drives Revenue and Organizational Growth
 Boosts Employee Morale and Productivity
 Increases Employee Recruitment and Retention
 Influencing factors – Positive

Access to
 finances,
 established sales force,
 brand,
 distribution channels,
 customer base.
 Knowledge - business’s technical aspects and setup process, cross-
functional expertise
 Network – other experts who can help ion developing new ideas
 Infrastructure
 Stability of a corporate job
 Hindrances
 Bureaucracy
 Long approval cycles- decisions delayed – pending approvals- frustration
 Limited ability of manoeuvre - Organizational structures, rules, and procedures
hinder a corporate entrepreneur’s ability to navigate the company.
 Limited financial rewards
 Few examples
ITC:
 Sivakumar, a manager in the ITC Group’s agri business unit,
approached ITC’s chairman, with a request of Rs 50 lakh to test an
idea of e-Choupal.
 He wanted to procure farm produce from soya farmers in Madhya
Pradesh, thereby eliminating middlemen.
 Today, e-Choupal, reaches out to millions of farmers growing a
range of crops in over 40,000 villages
 e-Choupal provides weather forecasts, domestic and international
commodity prices, and better crop management methods. It has
boosted the productivity of farmers and made the agri-products
market more competitive
 Few examples
Sony Play station
Ken got the idea of play-station while tinkering with his daughter’s
Nintendo. That time gaming was not much prevalent and many thought
this was a passing fad. CEO Norio Ohga supported the project and the
rest as they say, is history. A separate company was made with the
name Sony Computer Entertainment. Ken was made the CEO of this
newly created subsidiary and subsequently he was made the group
Chairman and CEO
Hindustan Unilever
In 2008, the performance of HUL stalled. At that time HUL had 1 million
point of sales. Nitin Paranjape who later on went to become MD and CEO
revamped the distribution strategy added 15000 outlets/ year including a
some small stores – added half a million outlets. 50% increase!!
In addition entered into a partnership with Tata to distribute Tata Docomo
sim cards in rural India
 The ugly side of intrapreneurship
 intrapreneurs leaving their jobs to start their own ventures.

 intrapreneurs becoming competitors and turning into a threat to the companies they left
 Entrepreneurial strategy
It is a means through which an organization establishes and re- establishes its
fundamental set of relationships with its environment.

Importance?
1. can identify trends and opportunities in the future.
2. can examine the broader changes in market such as political, social or
technological, as well as consumer changes, and
3. can develop tactics
so your business can modify and develop to suit these future changes.

According to Peter Drucker, the entrepreneurial strategy is as important as

purposeful innovation and entrepreneurial management.
Vital elements of strategic planning
 Vital elements of strategic planning
Define your Vision statement which is an aspirational description of what it wants
to achieve in future.

Create a Mission statement which is how you plan to achieve the vision.

Define your Objectives which are specific results that we to achieve within a time
frame.

Develop your Strategy, which is your long-term plan for achieving your
organization’s objectives.

Outline your Approach, which provides a methodology for executing your

strategy.

Get down to Tactics which are focused initiatives, projects, or programs that allow
organizations to execute a strategic plan.
Each tactic might not seem connected, but as you dig deeper, you’ll find that
effective tactics should always tie back to the strategy, objectives, mission, and
vision of the company.
Types of Enterpreneurial strategies
Differentiation Entrepreneurial Strategy

 Differentiation entrepreneurial strategy is the idea of developing a special and

distinctive offering in the market that distinguishes a company from its rivals.
This strategy encourages business owners to concentrate on creating goods or
services that stand out from the competition due to their special qualities, high
standards, or creative features.

 The differentiation strategy, businesses may draw clients who are prepared to
pay more for the distinctive advantages they provide by providing something
new or better than what is currently on the market. Eg. Apple Phone
Cost Leadership Entrepreneurial Strategy

 The main objective of the cost leadership entrepreneurial strategy is to gain a

competitive edge by providing goods or services at a lower price than rivals. By
offering inexpensive solutions without sacrificing quality, this strategy tries to
win over budget-conscious clients. In the cost leadership strategy business owners
may provide their goods and services at competitive prices by cutting manufacturing,
administrative, and distribution expenses. Eg. Ajio ,Amazon
Niche Market Targeting Entrepreneurial Strategy

 Here the focus is to capture a specific segment of customers with unique needs or
preferences. Entrepreneurs employing this strategy identify a small but profitable
niche and tailor their products or services to meet the specific demands of that niche.
Here understanding distinct requirements of the Niche client is very important. Eg. A
bakery selling glutton free or eggless bakery items


Innovation and Disruption Entrepreneurial Strategy

 This strategy involves identifying new and creative ways to solve existing
problems or meet unfulfilled needs in the market. Entrepreneurs employing this
strategy bring about significant changes and shake up established industries
through groundbreaking ideas, technologies, or business models and capture
substantial market share.
 Eg. Uber disrupted the taxi industry by introducing a smartphone app that
connected passengers with nearby drivers, improving the customer experience
and challenging the traditional taxi model
Strategic Partnerships and Alliances Entrepreneurial Strategy

 This strategy involves forming collaborative relationships with other businesses or

organizations to achieve common goals and mutually benefit from shared
resources, expertise, and market reach. Entrepreneurs employing this strategy
partner with complementary entities and leverage synergies and unlock new
opportunities.
 It can be thru formal agreements to informal collaborations, and they can provide
access to new markets, technologies, distribution channels, or customer segments.

 Eg. Starbucks and Spotify also partnered to create a music ecosystem within stores,
allowing customers to access and influence music through the app. This partnership
demonstrates how two brands can enhance customer experience, strengthen loyalty,
and drive business growth.

Market Segmentation Entrepreneurial Strategy

 This strategy involves dividing a broader market into distinct segments based
on demographics, psychographics, or behaviour. By understanding the unique
needs, preferences, and buying behaviour of different customer groups,
entrepreneurs focus on marketing efforts and offerings to effectively target
and serve each segment. This strategy emphasises that all customers are not
the same and that customization and targeted messaging can lead to higher
customer satisfaction and improved business performances
 Eg. Different variants of same car Model.



Diversification Entrepreneurial Strategy

 This strategy involves expanding a business’s product or service offerings into

new markets or industries. This strategy is used by business owners who want to
expand their consumer base and access new markets by utilizing their current
assets, skills, and customer base. Entrepreneurs can reduce the risks involved
with depending entirely on a single product or market.

 Eg. A restaurant can launch a line of packaged food products, leveraging its
culinary expertise to reach a wider audience.


Product Development Entrepreneurial Strategy

 The product development entrepreneurial strategy involves creating and

introducing new or improved products or services to the market. Entrepreneurs
employing this strategy focus on innovation and meeting customer needs by
developing offerings that provide unique features, improved functionality, or
enhanced value. This strategy requires research, creativity, and a deep
understanding of customer preferences to deliver products or services that
stand out from the competition and captivate target customers. Eg. Godrej
introducing digital and biometric lockers.
Market Penetration Entrepreneurial Strategy

 This strategy involves increasing a business’s market share within its existing
market by persuading more customers to purchase its products or services.
Entrepreneurs try to increase their market share by attracting new customers or
encouraging existing customers to make repeat purchases. This involves
aggressive marketing and sales efforts, pricing strategies, and enhancing the
overall value proposition.
 Eg. Automobile companies offering extended warranty or Interest free loans.
Franchising Entrepreneurial Strategy

 This strategy involves granting the rights to third-party individuals or entities to

operate a business based on an established brand, business model, and proven
system. Entrepreneurs employing this strategy, known as franchisors, expand
their business by allowing others, known as franchisees, to replicate their
successful concept in different locations. Franchising offers several benefits,
including rapid expansion, increased market presence, and shared financial risk.
The franchisor provides support, training, and ongoing guidance to the
franchisees, who in turn pay fees or royalties in exchange for the rights and
support provided by the franchisor.
 Eg. Teapost , Dominoes,Subway.

Blue Ocean Entrepreneurial Strategy

 The Blue Ocean Strategy is an entrepreneurial strategy that focuses on creating

new market spaces where competition is minimal or non-existent. Entrepreneurs
following the Blue Ocean Strategy seek to differentiate themselves by exploring
untapped markets or creating new market segments (“blue oceans”). This
strategy involves developing innovative products or services, offering unique
value propositions, and targeting unmet demands of customers.

 Eg By providing subscription-based DVD rental-by-mail services, the online

streaming service Netflix upended the video rental market.
Vertical Integration Entrepreneurial Strategy

 Vertical integration strategy entails the extension of a company’s activities by the

acquisition or control of numerous supply chain stages, from the procurement of
raw materials through the distribution of the finished good or service. By using
this strategy, entrepreneurs want to have more control over their manufacturing
procedures, cut expenses, boost productivity, and strengthen their competitive
edge.
 Eg. Reliance
Value Chain Analysis Entrepreneurial Strategy

 The Value Chain Analysis entrepreneurial strategy involves identifying and

analyzing the various activities and processes that create value within a
business. By conducting a comprehensive value chain analysis, entrepreneurs
can identify opportunities for cost reduction, process improvement,
differentiation, and value creation.
 Eg. For a coffee shop business this strategy can create value by sourcing high-
quality beans from farmers, improving efficiency, and enhancing customer
service. In the retail industry, a value chain analysis can help clothing retailers
reduce costs, offer competitive pricing, and differentiate their brands by offering
personalized styling services
Lean Startup Entrepreneurial Strategy

 The Lean Startup business strategy stresses quick experimentation, iterative

product development, and customer input to create a long-lasting and
profitable company. This strategy works by developing a minimal viable
product (MVP) with few features and launching it into the market as soon as
possible to receive input from actual users. Lean Startup practitioners seek to
confirm their hypotheses, gain knowledge from user insights, and modify their
product or business model based on ongoing experimentation and customer
feedback.
 Eg. Software startups like Dropbox. They develop a basic version of a mobile
app, gather insights through user feedback, and continuously improve it
through iteration and data analytics.
Exit Entrepreneurial Strategy

 The Exit Strategy entrepreneurial strategy refers to a planned approach taken by

entrepreneurs to exit or divest from their business venture. It involves
developing a clear roadmap for selling the business, transferring ownership, or
realizing the investment made in the venture.
 Eg. Exit strategy involves preparing a business for acquisition or IPO by focusing
on growth, intellectual property rights, and a sustainable model.