The entrepreneurial approach is an elaborate ideological action plan applied in starting an enterprise. This paper seeks to explain the difference between the four major startup approaches that are considered when one wants to start a venture. The approaches include architectural strategy, value chain strategy, disruption strategy and intellectual property strategy.
Architectural Strategy
In architectural approach, the area in which one operates is very extensive. For an upcoming venture, it enables them to compete and dominate the market in the vast domain ‘Facebook and Google’. It’s quite a challenge to implement and risky, but the outcome is a massive achievement for investors who succeed in architectural design. The investors identify the customers, the applicable technology and the dynamics of choices and quickly respond by aligning to those conforming factors. Chuck Templeton founder of OpenTable made a choice of targeting the top 20 influential restaurants and all the rest would want to join, indeed sooner the website service was flooded (Gans et al., 2018) . This demonstrates an act of architectural approach on the critical choices on a new venture.
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Value Chain Strategy
The value chain focuses on joining the existing value chain demonstrating a supportive approach. The approach on a start-up venture involves injecting resources into a mass supportive commercial idea and engaging competitively in daily basis targeting the success of an enterprise rather than downgrading the existing one. This does not allow the enterprise to control the product but may enable achieving profits. The investors work on creating a favorable partnership and long-lasting dependable co-existence which in as much as they depend on customers and technology, it’s practically mutual coexistence (Gans et al., 2018) . These enable one to engage in creating unique talent-based nature which is difficult to duplicate hence leading to profitable value chain with great expertise and functioning.
Disruption Strategy
This strategy employs direct competition with existing ventures majorly targeting the market. The start-up venture aims at enhancing the customer loyalty, capital and creating ability to sustain the pressure. The focus is to recreate a value-added chain, and dominate the market without direct engagement with the existing venture. It’s built on the failures and poor services of the incumbent and in addition improvement of service through incorporating of new idea and effectiveness. The disruption approach will work best if reaction and response to competitive mayhem is hastened making the enterprise flourish in the process. As demonstrated by Netflix company which reorganized the movie industry by offering cinephiles the opportunity to watch the latest blockbuster, disruption strategy must swift, goal oriented and orderly.
Intellectual Property Strategy
Intellectual property involves integration with existing ventures by offering important ideas while still keeping control of technology and product. The main focus should be the idea and its growth incorporating new innovations, improvement choices easing choice of the incumbent. The incumbent activities will have to incorporate the new technology and product bearing in mind, the new venture must be feasible and compatible. The improvement must be orderly and organized to achieve a relationship with aim of making a great practical improvement of the technology as demonstrated by Sound Company Dolby which works with system and movie producer companies by offering relevant sound technologies (Gans et al., 2018)
Conclusion
This entrepreneurial framework provides the strategic choice and enables align to the environment in aim to succeed in a new venture. The paper has demonstrated how different strategies such as architectural strategy, value chain strategy and disruptive strategy can be used to come up with an entrepreneurial venture.
References
Gans, J., Scott, E. L., & Stern, S. (2018, May 1). Strategy for Start-ups. Harvard Business Review . Retrieved from https://hbr.org/2018/05/do-entrepreneurs-need-a-strategy
