1. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Chapter 4 Understanding your Business Model and Developing your Strategy
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

2. Basic strategy categories are:
Differentiation
Low cost
Niche
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

3. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

4. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Amazon.com’s Revenue Model
Total revenues
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

5. Amazon. com’s cost model
Total costs and expenses
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

6. Several key aspects about capturing a first mover’s advantage
You have to be first (or very early) into the market
You need to capture a large percentage of the market quickly
You need to create switching costs so the customer will stick with you
Very expensive, hard to win
First Movers rarely win
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

7. Attributes of winning strategies
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

8. The people are what Matters
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

9. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Entry Strategy
Benchmark
Devise Initial Market Test
Create a Platform
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

10. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

11. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

12. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

13. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
The Entrepreneurial Firm International Expansion Process
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

14. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Means to expand globally
Pros
Cons
Technology Transfer
- Reduces entry costs
- Risk of losing the technology
Technology Licensing
- Generates revenue
- Conserves resources
- A lost opportunity to extend your own brand
Outsourcing
- Cost-saving
Exporting
Cheap
Easy
Additional costs in after-sales support and transportation
Moral hazard
Foreign Direct Investment (FDI)
- Physical presence
- Control of assets
- Expensive
Franchising
- Licenses an operational system
- Risk of damaging the brand name
Venture financing
- Both an enabling and an enacting mechanism
- Often leads to mergers and acquisitions with foreign companies
Mergers and acquisitions (M&A)
- Established infrastructure
- Allow a company to grow and expand quickly
- Very expensive
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©