• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 9. Choosing the Right Organizati... > Accelerating the Pace to Market

Accelerating the Pace to Market

Another reason to use market-oriented modes of opportunity exploitation is to speed the time to market. Very often entrepreneurial opportunities are short-lived because they depend on an external change that will quickly close up. Take, for example, the source of an opportunity for a new electronic voting machine that resulted from the problems with hanging chads in the 2000 presidential election. The nature of this problem and the frequency of elections mean that anyone wishing to sell new electronic voting machines had to get a new product developed and sold within a relatively short period. Because of the time that it takes to create a value chain, establishing the entire voting machine value chain from scratch might lead you to miss the window of opportunity if you started a company to exploit this opportunity. To avoid this problem, you could establish the value chain through contractual means. Because contracting allows the value chain to be assembled more quickly than creating the value chain assets through a hierarchical mode of operation, it allows you to meet the window of opportunity.

You can also use contractual modes of opportunity exploitation when there are reasons to enter a market quickly even if the opportunity is long-lived. For instance, entrepreneurs often use contractual models of opportunity exploitation when there are first mover advantages in an industry. By using contractual modes of exploitation, such as licensing and strategic alliances, you can get to market before competitors in industries with network externalities and high switching costs. As was explained earlier, quick entry to the market is often very beneficial in these types of industries.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint