Abstract Entrepreneurial alertness plays a significant role in pursuit of new opportunities (Kirzner, 1999). Building on the arguments on alertness presented by Tang and his colleagues in 2012 as well as Sarasvathy’s work on opportunity identification (2003) and stage theory, this research studies how alert connection — one dimension of entrepreneurial alertness promotes opportunity identification throughout development stages in both mature and immature markets. By studying the examples of successful entrepreneurs, I further explore the alert connection in the market characterized by unmet needs and the differences in the opportunity identification process in var-ious business fields. I then conduct interview with representatives from …show more content…
Opportunity Creation: In a situation in which neither the supply nor the demand exists, entrepreneurs have to create both so that the opportunity can come into existence. The type of possible opportunties change across different industries and stages of development. Therefore, in my research, I continue to use Sarasvathy’s framework to explore how alert connection leads to different views of opportunities in various situations.
The Stage of Development Many scholars have proposed that new businesses would experience several distinct stages as they grow. Although the stage theory has been increasingly criticized for artificially dividing a continuous growth process into discrete phases (Baron and Shane, ibid, p336, Phelps, Adams and Bessant, 2007), the stage model still plays an important role in understanding business growth in entrepreneurship. In 1988, Kazanjian proposed the following four-stage model of business growth: 1. Conception stage: This stage focuses on securing financial resources and developing a market. 2. Commercialization stage: At this stage, companies begin to create structures and task systems beyond product
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The Red oceans represent all the industries that ex-ist today and that are collectively known as the mature market. Kim and Mauborgne (2005) claimed, “Red oceans will always matter and will always be a fact of business life.” In the com-petitive red oceans, entrepreneurs must grab a greater share of existing demand in order to earn profits. In contrast, blue oceans denote all the industries not in existence today – in other words, they represent the immature market. Blue oceans are characterized by untapped market space, demand creation, and the opportunity for highly profitable growth. Most of them are created from red oceans by expanding existing industry
In conclusion, policy makers and practitioners often try to assist in the formation of new firms but do not always succeed. Many firms fail despite all the assistance however the important factor is that the government continues to promote their creation so that new jobs and industries can be created. (Storey 1994) Both policy makers and practitioners need to ensure a level playing field so that the economy can grow, develop and compete with other economies around the world.
early stages as a new product on the market. If a company has a good
The next step is the growth stage. In this stage product growth is monitored and big investments are made. Maturity stage the growth of the outputs is significant. For the company to ensure product survival in the market and gain a competitive advantage over competitors it has to incorporate product differentiation. The final stage involves product decline stage. In this juncture product sale goes down and the product identification
The world is filled with many ambitious people looking to make a product to help the world and make a living for themselves and their families. These people are known as entrepreneurs. An entrepreneur is someone who organizes and operates a business or businesses while running the risk of losing everything to make money. One might ask why there is a risk ...
A market universe can be considered to be composed of two oceans: Red and Blue. Red oceans represent the industries in existence today i.e. the known market place. Blue oceans denote all the industries not in existence today—the unknown market space, untainted by competition. In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known.
When comparing Kraft’s decision to enter into a new global market, they realized they have an untapped population that can bring in another source of revenue. Similarly, in the Capsim simulation, our team realized we have yet to penetrate and dominate the high tech market. Our decision the first round was to invest in assets to bring down our manufacturing costs, increase capacity, and establish market share. The success from round one will fund the capacity, automation, and production for our new high tech product launching next year. We recognized the opportunity, analyzed the buying criteria, and launched our design phase. Opportunity is recognized by looking for outside indicators, staging, aligning, exploring, and mapping, to set new directions (Lawton, 2004). Another factor in setting up for new opportunity is being open to continuous innovation. The market conditions, client expectations, technologies and organizational vision, shift over time, thus being open and strategically prepared for innovations and change sets a company up with the foundation for long-term
Slater, S. (2005). Successful development and commercialization of technological innovation: Insights based on strategy type. The Journal of Product Innovation Management, 23(1), 26-33. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1540-5885.2005.00178.x/citedby
For entrepreneurs whom are willing to accept the risk associated with starting a business, some have made themselves extremely wealthy. Although our economy is focused on capitalism as a means of promo...
Build-Up Phase, once companies absorbed knowledge they started to research and improve their own brand, and imitating the existing technology achieving innovation and chain expansion, namely, exportation of their product.
To be a successful entrepreneur, there are steps that one must follow when starting a new enterprise. These steps are termed as the process of entrepreneurial which is the systematic method of preparation of an enterprise that consists of four steps. The four steps are fundamental to the success of an entrepreneur venture. The four entrepreneurial processes includes discovering, assessing and opportunity, developing a business plan, establishing resource needs, and managing the resulting enterprise (Barringer & Ireland, 2010). Each individual step is vital for the start of an entrepreneur venture and for an entrepreneur to achieve their entrepreneurial goals. This paper will discuss the four steps of the entrepreneurial process,
Formation of a new venture is considered as the central activity of entrepreneurial research (Aldrich, 1999; Gartner, 1985). Gartner (1985) further defined venture as a goal directed, a boundary maintaining activity system which emerge when entrepreneurs take initiative to execute the founding activities. The dynamic process of venture formation involves various activities such as forming a business plan, obtaining resources, developing products, finding financial, government, infrastructural, market research, patenting and legal support (Lebrasseur, 2003; Brush et.al, 2008a;b). Thus, the process of a venture formation has been generally also known as the sequence of activities or events performed by an entrepreneur for firm formation (Liao & Welsch, 2008). Various frameworks have been presented by researchers for exploring activities in the firm formation process. They had identified that the firm formation process is majorly descriptive and conceptual assuming it to be a unitary and linear formed with the combination of activities (Carter et al., 1996). On other side, the life cycle study of firm formation argues that the process goes from diverse phase or stages. Carter et al., (1996) had identified that activities which are executed during the process of setting up a firm have high variation in their sequence and amount of activities Moreover, the empirical studies carried by Carter et.al (1996) and Lichtenstein et.al (2006) identified that execution of more activities lead to venture survival. Carter et al. (1996) also analyzed the occurrence, series, and time frame allied with the key activities and events in firm formation process. In addition to this, Reynolds and Miller (1992) identified significant deviation in activitie...
"Entrepreneurs who start and build new businesses are more celebrated than studied. They embody, in the popular imagination and in the eyes of some scholars, the virtues of "boldness, ingenuity, leadership, persistence and determination." Policymakers see them as a crucial source of employment and productivity growth. Yet our systematic knowledge of how entrepreneurs start and grow their businesses is limited. The activity does not occupy a prominent place in the study of business and economics.
Corporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests a formal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process of organizational renewal. Corporate Entrepreneurship has emerged as a much needed ingredient contributing towards the growth of any organization under a changing business environment.
entrepreneurs have the ability to come up with new ideas in various situations of which one might have never imagined. Entrepreneurs have a curiosity that identifies overlooked niches and they are constantly trying to innovate (Robinson, 2014). They imagine another world and have the ability to communicate that vision effectively to investors, customers and staff.