MGMT 680 Ch 13 (Strategic Entrepreneurship_

Entrepreneurial opportunities

conditions in which new goods or services can satisfy a need in the market

using a strategic perspective

more established firms generally excel at...

not seeing the blind spot

barrier to entrepreneurial mindset...

1. each department has their own way of solving problems 2. organizational politics (departments competing over resources)

barriers to internal innovation

internet

because of the _______________, companies are able to get into more niche products, thus stretching the long tail

1. trying to mitigate false starts and failures (miss out on learning experiences) 2. resisting challenging assumptions, work practices, and skills 3. investing too many lavish resources on new ventures

3 obstacles to corporate entrepreneurship (DON'T want to do these things)

radical

Dollar Shave Club's subscription razor model was a(n) ______________ innovation in business model

incremental

Gillette's gradual increase in the number of blades in their razor cartridges were ______________ innovations

radical

Gillette's invention of the safety razor was a(n) _____________ innovation in business model at the time

internal innovation

R&D, forming internal corporate ventures

strategic entrepreneurship

__________________ tries to envelop all of the strategic management process and turn it into competitive advantage

autonomous strategic behavior

a bottom-up process in which product champions pursue new ideas, often through a political process, by means of which they develop and coordinate the actions required to innovate and to bring the innovation to the market

international entrepreneurship

a process in which firms creatively discover and exploit opportunities that are outside their domestic markets

Entrepreneurship

a process used by individuals and groups to identify entrepreneurial opportunities without being immediately constrained by the resources they control

innovation

a process used to create a commercial product from an invention; follows invention in that invention brings something new tinto being while this brings something new into use

product champion

an individual with an entrepreneurial mind-set who seeks to create support for developing an innovation

architectural innovation

bring existing technology into a new market

incremental innovation

bring existing technology into existing market

disruptive innovation

bring new technology into existing market

radical innovation

bring new technology into new market

incremental innovation

building on existing knowledge bases and provides small improvements in current products; exploit an existing technology to provide an improvement over a current product

1. hyper-competition 2. environmental turbulence 3. creative destruction 4. technological development and change

challenges of the 21st century (4)

strategic dimension of strategic entrepreneurship

determining the best way to competitively manage the firm's innnovation efforts

hypercompetition

driven by continuous innovation

entrepreneurship dimension of strategic entrepreneurship

identifying opportunities to exploit through innovations

entrepreneurs

individuals, acting independently or as part of an organization, who perceive an entrepreneurial opportunity and then take risks to develop an innovation to exploit it

strategic entrepreneurship

involves taking entrepreneurial actions using a strategic perspective

increases

likelihood of discontinuity ________________ as technology approaches physical limit (s curves)

Novel (breakthrough) Innovations

provide significant technological changes (breakthroughs) and create new knowledge; typically use new technologies to serve newly created markets

to continuously find new opportunities and quickly develop innovations to exploit them

purpose of strategic entrepreneurship

internal corporate venturing

set of activities firms use to develop internal inventions and especially innovations

assessing resources & capabilities

starting point in entrepreneurial process for existing firms

opportunity

starting point in entrepreneurial process for new ventures

shorter

subsequent innovations sustain competitive advantage for a _________ time frame

invention

the act of creating or developing a new product or process

imitation

the adoption of a similar innovation by different firms

the long tail model

the majority of sales comes from a smaller selection of very popular traditional products; there are lots of niche products that have similarly low popularity

slow

the razor industry is a relatively ________-cycle market, but it is being disrupted

1. autonomous strategic behavior 2. induced strategic behavior

the two forms of internal corporate venturing

Corporate Entrepreneurship

the use or application of entrepreneurship within an established firm

1. internal innovation 2. cooperative strategies 3. acquisitions

three basic approaches used to produce innovation

1. opportunity 2. resources & capabilities 3. entrepreneur & entrepreneurial team

three elements of the entrepreneurial process

1. invention 2. innovation 3. imitation

three types of innovative activity

induced strategic behavior

top-down process whereby the firm's current strategy and structure foster innovations that are closely associated with that strategy and structure

entrepreneurial mind-set

values uncertainty in markets and seeks to continuously identify opportunities in those markets that can be pursued through innovation

taking entrepreneurial actions

younger entrepreneurial ventures generally excel at...