AEM1230-0921-ToPost - AEM1230 Principles of...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
AEM1230 Principles of Entrepreneurship and Business Monday 9/21 Understanding and protecting competitive advantage Defining competitive advantage Protecting competitive advantage Protecting unique information
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Typical Entrepreneurial Effort Last less than three years Never generates a profit Is abandoned Or ends in bankruptcy!
Background image of page 2
Defining competitive advantage A firm is said to have a sustained competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy Barney, 1991 An enterprise has a Competitive Advantage if it is able to create more economic value than the marginal (breakeven) competitor in its product market. The Economic Value created by an enterprise in the course of providing a good or service is the difference between the perceived benefits gained by the purchasers of the good and the economic cost to the enterprise. Peteraf and Barney, 2003
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Competitive Advantage Precludes others from imitating the business idea perfectly Allows the entrepreneur to capture the profits from exploiting the opportunity
Background image of page 4
How does competitive advantage feel? Mark Brandt Notiva, now Maple Fund Mike Pratico avatartechnology.com David McElroy Verdia
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Mark Brandt – Maple Fund
Background image of page 6
Mark Brandt – Maple Fund Sustainable competitive advantage. It's everything in a successful venture back company. Well, I could give you the obvious answer. We have a patent, you know, patent will protect me. It's kind of like holding up the shield. A patent is a good thing, don't get me wrong. You need a patent, you need to copyright and patent all your work, but the reality is the thing that's going to do it for you more than anything is to get into a particular industry and prove to some leaders in that industry that you can do it. You can do whatever it is you're going do. And then what you do is you have to get the cookie cutter thing going. You've got to be able to take that and replicate it
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/12/2010 for the course AEM 1230 at Cornell University (Engineering School).

Page1 / 19

AEM1230-0921-ToPost - AEM1230 Principles of...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online