Successful Entrepreneurship Long-term development strategy Thorough analysis of the environment and its competitors

Transcription

1 Successful Entrepreneurship Long-term development strategy Thorough analysis of the environment and its competitors Leadership It is quiet different than management The management is exercised by certain officers and requires to follow a process. Leadership leads to voluntary movements.

2 Sources of Power It is linked with: the position in the hierarchy It is linked with an individual's ability to provide rewards It is linked with the possibility of imposing punishment It is linked with the existence of specialized knowledge It is linked with the access to important information control. According to the source of power used, one can react with 3 ways: Commitment Compliance Reaction

3 Features The leader has some special features to take into account regardless of the situation facing. Intelligence, self - discipline, aggressiveness, determination, communication skills, internal need for success, creativity. Leadership is more linked with the actions than with the features.

4 Theory of Attitude The leaders are based on certain attitudes Leadership is oriented to the result Leadership is oriented to the employee Interest for the employee Interest for the result

5 Theory of Situations Leaders depend on the needs of the organization for some period. Existence of correlation between leader state. When needs change, the mode of action should be changed as well. Oriented at the Project Lea der Oriented at the relations Situ atio n Ιδανική Χείριστη

6 Analysis of competitive position Threat from substitute products Risk from new competitors Power of negotiations from suppliers Power of negotiations from clients Intensity of competition between firms in the industry. Important factors for firm and profitability: Structural Attractiveness (positive for the firms whoa are already in the industry, negative for those who want to get in the sector). Structural change

7 Risk from new competitors Firms of the industry create entry obstacles through: Economies of scale Product s diversification Capital Requirements Cost of change Access to distribution channels Government Policy Cost s disadvantages beyond Economies of scale. Power of negotiations from clients Customers ability to force a price reduction and buy better quality product.

8 Power of negotiations from suppliers Increase of price Reduction of quality Threat from substitute products Firms from other firms which offer substitute products. Intensity of competition between firms in the industry Intensity of competition between firms in the industry Obtaining a larger share Prices competitiveness Quality improvement Campaigns Import of new products Increased customer service

9 Sources of competitive advantages Chain value: The way firms organize and implement special activities such as chain of production, marketing, distribution, service product and support activities. How to organize: Operational Strategy It is an interdependent system Careful management creates sources of competitive advantages It should be better treated as a system rather than as a sum of various parts. It is required to improve the competitiveness position, the rearrangement, the removal, the reconstruction and enrichment of activities. It is part of the system value.

10 It is linked with the field of competitive advantages. Competitive Advantage Lower Cost Diversification Competitive Field Wide Target Narrow Target Cost s Leadership Focused on cost Diversification Focused on Diversification Creation of competitive Advantages It includes technological, organizational and operational innovations New Technologies New or displaced demand needs Development of new activities in a firm Changed in the cost or in the availability of inputs Changes in state regulations

11 Preservation of Competitive Advantages Special Source of Advantage Number of distinct sources of company s advantage Constant improvement and enhancement Ansoff Tables Strategy of Long term development Development means revenues increase and sales based on the criteria set out below: : Existing Product New Market Existing Penetration Product s Development New Market Development Diversification

12 Existing Market/ Existing Product It is not necessary the creation of a new product The penetration process starts from maintaining the clients. Next step is the attractiveness of new clients This happens with the combination of product improvement, and sales promotion Long term Horizon Products Modification Existing Market/ New Product Taking advantage of technological changes for improvement and creation Maintaining and attracting new clients.

13 Market Development New Market/ Existing Product Finding new markets (depending on social, geographical, economic characteristics, educational level, lifestyle, interests) Diversification Strategy New Market/ New Product High level of risk which is linked with the industry, the firm wants to operate. Vertical activity Horizontal vertical activity Irrelevant diversification

14 Boston Consulting Group Portfolio Relationship between market and share price Market Development High Low Market Share High Stars (develop) Cows (generate milk) Low Question marks (search) Dogs (release)

15 Cows: Products with high market share in a mature market (past years stars). Stars: High share price in a quickly developed market (may be become cows). Question Marks: Low share price in a quickly developed market. Dogs: Low share price in a slow developed market.