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Entrepreneurial Strategy:
Generating and Exploiting New Entries

I. NEW ENTRY A. New entry is one of the essential acts of entrepreneurship. B. Newness can be both positive and negative. 1. Newness can help differentiate a firm from its competitors. 2. However, newness creates a number of challenges for entrepreneurs. C. Entrepreneurial strategy maximizes the benefits of newness and minimizes its costs. D. The elements of an entrepreneurial strategy are: 1. The generation of a new entry opportunity, the result of knowledge, and other resources into a bundle that will be valuable, rare, and difficult for others to imitate. 2. The exploitation of a new entry opportunity. 3. A feedback loop. E. If the new entry warrants exploitation, then firm performance depends on: 1. The entry strategy; the risk reduction strategy.
2. The way the firm is organized. 3. The competence of the entrepreneur and the management team.
F. Long-run performance is dependent upon the ability to generate and exploit numerous new entries.

II. GENERATION OF A NEW ENTRY OPPORTUNITY A. Resources as a Source of Competitive Advantage 1. Resources are the basic building blocks to a firm’s functioning and performance. These can be combined in different ways to achieve superior performance.
2. These resources need to be considered as a bundle rather than just the resources that make up the bundle.
3. A bundle of resources is: a. Valuable when it enables the firm to pursue opportunities, neutralize threats, and to offer products and services that are valued by customers. b. Rare when few or no competitors have it. c. Inimitable when replication of this combination of resources would be difficult and/or costly for competitors.
4.