There are four specifically entrepreneurial strategies:
1. Being “Fustest with the Mostest”
it aims from the start at a permanent leadership position. – of all entrepreneurial strategies it is the greatest gamble. “Putting a Man on the Moon” is an example of this strategy being used. It’s a high risk, high reward approach, and it requires impeccable timing and a big investment.
2. “Hitting Them Where They Ain’t”
This calls on a company to attack its competitors where they’re weak. IBM’s personal computer was virtually identical to Apple’s when it came to technical features. But they used all kinds of distribution channels to sell their product while Apple only used their specialty stores. That made it easy for customers to buy their products and they dominated the personal computer market for a long time.
3. Ecological Niches
The previous strategies focus on positioning. This one is all about controlling a small market. This is the idea of finding 1000 true fans. –
4. Changing values
This one involves creating a customer, and you can do that by creating utility, pricing, or adapting to the customer’s social and economic reality. An example of this is Gillette. It used to be the case that only the aristocrats in society would look after their facial hair. In the late nineteenth century, “large numbers of men, tradesmen, shopkeepers, clerks, had to look respectable.” But they didn’t know how to use a razor, and it was cheap to go to the barbers – it cost ten cents.
A razor would cost five dollars. But Gillette used an innovative pricing strategy. They sold their razors for fifty-five cents retail, or twenty cents retail. But that’s not how Gillette made money. The secret was in the razors. They cost only one cent, but were being sold for five. And each razor could be used six or seven times, making it a much cheaper option that going to the barbers.