Entrepreneurship - Business Life Cycle Stages

Notes for Final Exam

Advantages of primary research

More reliable, up to date, able to knoe the source from which data obtained, can be searched for the actual purpose of study etc research findings more accurate

Methods of research

Questionaire , interview, observation and experimentation discussed giving advantages of each and examples

Stages in determining ways to enter markets and to be competitive – segment markets, target customers based on demographic etc and positioning of products – making sure the products meet the needs of specific customers

Core competence – ability to produce augmented products, core competence – ability to produce basic or core product and distinctive capabilities – ability to produce delighted products that excites customers Value chain of companies how able to produce such goods having advantages in terms of technology, skilled workers etc to produce such goods

Business life Cycle Stages

I G M D S

The Introductory stage – to target markets, customers and develop promotion to target customers and persuade them to buy the products and how it can meet their needs etc. Maturity stage – customers buy the products and may recommend to their friends – at this stage entrepreneur needs to improve the product features by product development through research and development so that customers continue to buy the products in order to improve sales etc Decline stage – at this stage the sales are expected to fall as customers lose interest and competitors are bringing in new products for selling to the target market of entrepreneur has to find new ways to overcome the problem. The ways that he could look at is to innovate new products or services Senile Stage – Look for a company who could join together to improve the product etc by merger and other external development strategies etc.

When the business is not doing well, it is recommended that the activities of the business such as packaging or transportation etc that is not bringing the expected profits can be outsourced to other companies to perform. The reason is to reduce cost and also improve productivity. When other companies undertake these activities it is possible for them to get economies of scale and they in turn will be able to charge a reduced price. This is likely to be competitive for an entrepreneur in managing his business.

Mergers – when a