d) They should decide on a dynamic equity split
How good is it to be fast - What are the advantages of a first-mover strategy?
less competitive rivalry
opportunity to secure supplier and distributor channels
a better position to satisfy customers
gaining expertise through participation
How good is it to be fast - What are the disadvantages of a first-mover strategy?
technological uncertainty
market uncertainty
uncertainty in value creation for customers
How good is it to be fast - What are the advantages of a late-mover strategy?
refining is easier than inventing
reduced R&D costs
more organizational legitimacy as type for business is known
lower levels of uncertainty
How good is it to be fast - What are the disadvantages of a late-mover strategy?
customers/users might be loyal to first mover
access to resources more expensive
need to catch up with first movers
What are the two different entry strategies?
narrow-scope strategy
broad-scope strategy
What is a narrow-scope strategy?
What is a broad-scope strategy?
What are the two categories capturing high-growth firms?
gazelle
unicorn
What are characteristics of a firm that is categorized as a gazelle?
running fast, jumping high
≤ 5 years old
≥ 10 employees at start of observation period
ave. annual growth > 20% over 5 years
e.g. starbucks, best buy
What are characteristics of a firm that is categorized as a unicorn?
extremely rare
startup company valued at over 1 billion USD
more that 1.200 unicorns around the worls and 29 in germany
do we need to wish for decacorns with valuation of more that 10 billion USD in the future?
What are the goals of high growth in
start-up firm
scale-up firm
mature firm
?
establish viability and gain legitimacy
develop firm to a competitive size
maintain and renew competitiveness
What are the mechanisms of high growth in
experiment to develop offering and business model
build capacity for scale with accelerated life cycles
maintain and improve efficiency
sustain innovation
What are the challenges of high growth in
resource constraint
effectively manage at larger size and complexity
synchronizaton of internal organization
balance exploration with exploitation
reconfigure internal resources and activities
What the organization context of high growth in
small and flat structures
low formalization
high flexibility and agility
develop structure
increasing formalization
complex and rigid structures
high formalization
What are the growth phases and their connected challenges with an increasing size of organization?
What are the 4 different strategies used to grow a firm in existing and new markets and with existing and new products
What is penetration strategy?
(existing market, existung product)
to grow by encouraging existing customers to buy more of the firm’s current products
marketing can be effective in ecouraging frequent repeat purchases
involves nothing new for firm
relies on taking market share from competitors
and/or expanding size of existing market
What is market development strategy?
(new market, existing product)
grow by selling firm’s extisting products in new groups of customers
new geographical market (new location)
new demographic market
new product use
What is product development strategy?
(existing market, new product)
grow by developing and selling new products to people who are already purchasing the firm’s existing products
advantages:
chance to capitalize existing distribution system
capitalizing on corporate reputation
What is diversification strategy?
(new market, new product)
grow by selling new product to new market
What are the three integrations used in deversification strategies?
backward integration -> step back in value-added chain towards raw materials
forwards integration -> step forward on value-added chain towards the customers
horizintal integration -> on same level of value-added chain but involves a different, complementary, value-added chain
Last changeda year ago
