Professional Documents
Culture Documents
Looking Ahead
After studying this chapter, you should be able to:
1. 2.
3.
Give several reasons for starting a new business rather than buying an existing firm or acquiring a franchise. Identify several factors that determine whether an idea for a new venture is a good investment opportunity. Distinguish between the different types and sources of start-up ideas.
4.
Define competitive advantage and assess features of the environment and organization itself that support competitive advantage.
Copyright 2010 by Nelson Education Ltd.
Chapter 2
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Looking Ahead
5.
6. 7. 8.
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Chapter 2
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Exhibit 2-1a
Source: Adapted from Jeffrey A. Timmons and Stephen Spinelli, New Venture Creation: Entrepreneurship for the 21st Century (Boston: McGraw-Hill Irwin, 2007), pp. 128129.
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Exhibit 2-1b
Source: Adapted from Jeffrey A. Timmons and Stephen Spinelli, New Venture Creation: Entrepreneurship for the 21st Century (Boston: McGraw-Hill Irwin, 2007), pp. 128129.
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Exhibit 2-1c
Source: Adapted from Jeffrey A. Timmons and Stephen Spinelli, New Venture Creation: Entrepreneurship for the 21st Century (Boston: McGraw-Hill Irwin, 2007), pp. 128129.
Chapter 2
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Exhibit 2-2
Chapter 2 Copyright 2010 by Nelson Education Ltd.
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Exhibit 2-3
Chapter 2 Copyright 2010 by Nelson Education Ltd.
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Competitive Advantage
A firm offers a product or service that is perceived by customers to be superior to those of competitors, thereby promoting firm profitability To establish competitive advantage, a business owner needs to understand the nature of the environment External what business potentials exist Internal what the firm is able to do
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Industry Environment
The combined forces that directly impact a given firm and its competitors
Chapter 2 Copyright 2010 by Nelson Education Ltd.
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Price/Value
Competitive Advantage
Notable Product Attributes Accessibility
Customer Service
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Strategic Terms
Strategy
An action plan that guides resource investments to capitalize on business opportunities
Strategic Decision
A decision regarding the direction a firm will take in relation to its customers and competitors.
Chapter 2 Copyright 2010 by Nelson Education Ltd.
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An established, value-creating industry position that is likely to endure over time Results include superior profitability, increased market share, and improved customer satisfaction
Chapter 2 Copyright 2010 by Nelson Education Ltd.
Market
a group of customers or potential customers who have purchasing power and unsatisfied needs
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Ingredients of a Market
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Small Business
(Community Writing Company)
Marketing Mix 2
Product: Price: Felt-Tip Pen $1.00
Marketing Mix 1
Product: Price: Felt-Tip Pen $0.49
Marketing Mix 3
Product: Price: Promotion: Gold Fountain Pen $50.00 Personal Selling
Exhibit 2-6
Small Business
(Community Writing Company)
Marketing Mix 1
Chapter 2
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The target segment is structurally unattractive. The target segments differences from other segments narrow. New firms sub segment the industry.
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