1 / 29

Selecting and executing your Entrance Strategy

Selecting and executing your Entrance Strategy. Entrance Strategies (Chapter 9 ) Decide on an entry strategy Planning to learn when uncertainty is high Assessing your project as it unfolds Tug of War (Practicum) . Innovation = Invention + Commercialization. What do you do now?. You’ve:

buzz
Télécharger la présentation

Selecting and executing your Entrance Strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Selecting and executing your Entrance Strategy Entrance Strategies (Chapter 9) Decide on an entry strategy Planning to learn when uncertainty is high Assessing your project as it unfolds Tug of War (Practicum) 

  2. Innovation = Invention + Commercialization

  3. What do you do now? • You’ve: • Identified and screen new innovations • Figured out your target market • Filled your opportunity portfolio • Determined your core competences • Decided where you will invest for the future • Now it’s time to get … • Down in the real world. You know. Where the rubber meets the road and the real folks are that make it go. • H. Ross Perot, on Larry King Live

  4. Where does entry strategy fit in?

  5. What is ‘Entrance Strategy’? • Several practical areas in entrepreneurship and innovation reflect the role of the entrance strategy • The first step in an entrance strategy is your ‘vision’ – what will the company look like in 10, 15, 20 years • Financing (VC’s, Banks, Stock issues) • Many aspects of Venture Capital work (business model, hiring decisions, capitalization, etc.) • ‘Incubators’ • Speculators and Universities love these • Why?`

  6. Adaptive Execution • Decide on an entry strategy • Anticipating competitive behavior and response • Planning to learn when uncertainty is high • Rather than meeting objectives set in advance • Discovery Driven Planning • Assessing your project as it unfolds

  7. Anticipating Competitor Response • Objective: Avoid debilitating competitive interaction • By using speed, skill and surprise • Use your imagination, innovation, creativity to outmaneuver your competitors • Rather than your scarce resources

  8. Where are your Customers? • Lead-steer customers • Opinion leaders in their industries • Highly regarded by peers • Customers with blogs, review or other sites • Use these customers’ enthusiasm to: • Test your assumptions about attribute maps and consumption chains • Use their success with your offering to sell others

  9. Assessing Your first 5 sales This is where you evaluate, learn, modify

  10. No Sales until ‘First 5 Sales’prioritizing the first few sales

  11. Risk-return trade-off • Most customers will buy on a risk-return decision • Small $ value = low risk • Higher risk = demand for higher return (savings)

  12. Customer RisksThe risk of the New • Learning (experience) curve • Opportunity costs • Failure or uncertain operation • Employee resistance • Legal and Environmental • Quality & Perception

  13. Learn from each sale • You can’t sell 10 until you sell 1 • You can’t sell 100 until you sell 10; Etc. • Each of the early sales is an opportunity: • To test your attribute map and consumption chain • To learn about your product and customer • To innovate again and again

  14. Tug of War Write the challenge Describe the best-case scenario and the worst-case scenario List the conditions of the situation Find the forces pushing you to the best case and those pulling you toward catastrophe Pit each condition against its opposite on the continuum by specifying its push and pull powers.

  15. Assessing Competitive Response After you’ve assessed your first few buyers … decide how aggressively you want to move

  16. Competitor’s propensity to respond • 3 Questions • Is this area important to them? • Have they been increasing their commitment here? • Have they invested heavily in this area? • This is where • The Porter framework • Is useful

  17. Competitive ResponsesHere’s where the book lapses into Military jargon

  18. Tactics • feint (fānt) noun • 1. A feigned attack designed to draw defensive action away from an intended target. • 2. A deceptive action calculated to divert attention from one's real purpose. See synonyms at artifice. • gam·bit (gămʹbĭt) noun • 1.Games. An opening in chess in which a minor piece, or pieces, usually a pawn, is offered in exchange for a favorable position. • 2. A maneuver, stratagem, or ploy, especially one used at an initial stage. • 3. A remark intended to open a conversation. • on·slaught (ŏnʹslôt´, ônʹ-) noun • 1. A violent attack. • 2. An overwhelming outpouring: an onslaught of third-class mail.

  19. Who will feed Fluffy? PETCO Case on pp. 213-214

  20. Theory & Practice • Our theory provides you an inventory of techniques and concepts required for success • The necessary conditions • Practice is more complex, and requires a complete strategy (and even then is not sufficient)

  21. Practice in Competitive Positioning • Identify your first few customers and learn from them • Develop your strategy • Identify each customer arena you intend to pursue • Assess Corporate Support • Assess Motivation and Capacity of the Competition • Map Arena Attractiveness • Map Competitive Positions of each player • Decide on your firm’s preferred strategy • Assess strategy of each competitor • Map each competitor's business position against your own

  22. Ralston + Developing positions in seven sub-segments of the pet food business pp. 217 on

  23. The Competitors

  24. Commitments

  25. Categories and Products

  26. Competitive Positions

  27. Ralston vs. Mars (importance)

  28. Ralston vs. Mars (Attractiveness)

More Related