Critical competitive strategy issues every entrepreneur should consider before going into business
Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 2
Davis A., Olson E.M. Business Horizons, May-June 2008, Vol. 51 No. 3, Start page: 211, No of pages: 11
Purpose – Considers differences between how large established firms and their smaller start-up counterparts consider strategy initiatives leading towards guiding entrepreneurs towards higher probabilities of success. Design/methodology/approach – Creates a new model of strategic forces that captures suppliers, customers/markets, competition and regulation as external forces, and internal culture as an internal force. Identifies and elaborates on differences between established companies and start-ups in respect of these five strategic forces. Explores supplier-related strategic differences with regard to relationship to resources, investor expectations, shareholder/investor risk tolerance, and time horizon for results; customers/markets-related differences with regard to building on market strengths and size of market;competition-related differences with regard to visibility by (and of)competitors, portfolio management and triage; regulation - related differences in the form of constraints; and internal culture-related differences with regard to process. Findings – Maintains that whether a company is an established firm or a new start-up, having a strategic directive is a critical component in increasing the probability of successfully meeting customer and investor demands. Research limitations/implications – Has no stated implications for future research. Originality/value – Accommodates a gap in the new venture literature by applying classical large-company strategy ideas to smaller start-up businesses.I SSN: 0007-6813 Reference: 37AX198DOI:10.1016/bushor.2008.01010
Keywords: Competitive advantage, Competitive strategy,Entrepreneurship, Product launch, Start-ups
