LESSON 1: INTRODUCTION TO ENTREPRENEURIAL STRATEGY Flashcards
(20 cards)
the overarching plan that aligns business goals with actionable steps, providing a direction for achieving sustainable growth
Strategy
ensures resources are
used effectively and helps the business adapt in
competitive markets.
strategy
: Focuses on Operational Planning long-term goals, vision, and overall growth direction.
Strategic Planning
: Involves short-term, day-to-day activities to
support strategic goals.
Operational Planning
Importance of Strategy for Startups and Small Businesses
- Helps define clear goals, identify target markets, and allocate resources wisely.
- Essential for navigating market competition,
adapting to changes, and managing risks
effectively.
Key Components of an
Entrepreneurial Strategy
*Vision and Mission Statements
*Goals
*Value Proposition
*Competitive Advantage
*Target Market
Types of Entrepreneurial
Strategies
- Competitive strategies
- Growth strategies
- Innovation strategies
- Exit strategies
gaining an advantage by offering lower-priced
products/services without compromising quality.
Cost leadership
standing out through unique product features, quality, or brand appeal.
Differentiation
concentrating on a narrow market segment with specialized products/services.
Focus/niche strategy
increasing market share within existing markets, often through pricing
or promotional tactics.
Market penetration
innovating or improving products for existing markets.
Product development
expanding into new markets with new products, balancing risk
Diversification
expanding to new geographic markets or demographic segments.
Market development
introducing new products or services that disrupt existing markets.
Disruptive innovation
gradual improvements vs. Breakthrough changes that redefine
markets.
Incremental vs. Radical innovation
Planning for eventual business exit options
like IPO (initial public offering), acquisition,
merger, or liquidation, based on business
goals and market conditions.
Exit strategies
what are the competitive strategies
- cost leadership
- differentiation
- focus/niche strategy
what are the growth strategies
- market penetration
- product development
- market development
- diversification
what are the innovation strategies
- disruptive innovation
- Incremental vs. Radical innovation
