Application to Entrepreneurship
Creativity is significant for entrepreneurship in that it helps in generation of creative and novel ideas thereby generating competitive advantage to an organization. It helps in the development of new operational processes for the firm thereby generating needed advantage to the entrepreneurs. Further, the involvement of creativity to entrepreneurship ideally contributes in the creation of niche product or service ideas that enable productivity to the institution. Moreover, an entrepreneurs with a creative setup aims in gaining inspiration from different new ideas pertaining to different domains both along the business and non-business front. Creativity ingrained in entrepreneurship encourages the entrepreneur to venture into untapped markets and product, service and customer segments (Sharma, 2016).
Innovation is important to entrepreneurship such that it helps in the generation of a new product or servicing solution to the customers. Further, the aspect of innovation in entrepreneurship is identified as a key value that helps in the generation of needed longevity to a business institution. Innovation is also significant in entrepreneurship such that it helps in promoting success to a business institution. Innovators in business contribute in the generation of potential solutions to a market or consumer need. Further, the incorporation of entrepreneurship in innovation rightly helps in enhancing the competitive advantage of the business institution owing to the development of cost effective products generating needed value to customers (Matthews & Brueggemann, 2015).
Risk management is significant in entrepreneurship such that it helps the entrepreneur in both accepting and also embracing needed uncertainty associated to the business environment. Entrepreneurs are also observed to be tolerant to different types of risks emerging along the social and business environment. As risk takers, entrepreneurs are always on the lookout for better opportunities associated to changes in consumer and market demand for products and services. Entrepreneurs being risk takers are observed to operate with needed confidence in sighting greater opportunities and also in managing different risks. Risk management is carried out by entrepreneurs through effective evaluation of the business environment for understanding the risks that can be eliminated or reduced and the costs associated to such (Luetge & Jauernig, 2013).
Entrepreneurship dimension along the global business front focuses on the development of new firms both of larger and smaller formats along different business domains. In the modern business era, entrepreneurs that focus on developing a multinational and larger presence are required to ideally focus on gaining access to new resources and opportunities on a global scale. Entrepreneurs to focus on developing its global potential are required to generate partnership with effective companies on an international scale such that the same helps the business institutions gain access to potential resources and business opportunities. International entrepreneurs are required to work in a proactive fashion for seeking opportunities across international frontiers that help in accumulating wealth in the business institutions (Peng, 2016).
One of the most challenging tasks to an entrepreneur is associated with the identification, sourcing and also the effective management of resources needed for carrying out the production functions in an effective fashion. Effective management of resources rightly helps the entrepreneur in developing on its competitive advantage and thereby in potentially competing with other firms on a global scale. Further, the entrepreneur is required to focus on gaining access to a diverse and differentiated resource base which helps in promoting its growth and development in the stated market. The entrepreneurs are required to take needed risks in terms of sourcing and employing of new and untapped resources for developing the needed quality and quantity of products and services for meeting of emergent consumer needs (Jockenhöfer, 2013).
Human Resource Management
The entrepreneurs to gain and develop on competitive advantage are required to potentially focus on recruiting the right quality and quantity of talent that would help in suiting the diverse job roles in the firm. Moreover, the entrepreneur is also required to incorporate needed training and development modules that would help in enhancing the qualities and potencies of the recruited workforce and thereby develop their confidence for effectively operating in the competitive business situation in a result or performance oriented fashion. Similarly, the entrepreneur is also required to incorporate positive reinforcement tools linked with financial and non-financial incentives for motivating the workforce recruited for meeting of departmental and institutional objectives. The entrepreneurs are also required to continually assess and evaluate the performances of the organizational members and thereby generate needed feedbacks aimed at improvement of the performance standards of the employees (Akanda, 2015).
Role of the Entrepreneurial Activities
Creating and Delivering Value
Entrepreneurs like Jeff Bezos the founder of the e-commerce giant, Amazon.com ideally focus on creating and delivering value to the different stakeholders both internal and external to the firm. The entrepreneurs focus on the identification of new business ideas and opportunities that helps the entrepreneur in incorporating needed innovation and creative skills for the development of new products and services solutions that would cater to address the changing needs of customers. Further, the entrepreneurs like Jeff Bezos develop potential insights in understanding the needs and expectations of the customers and thereby anticipates such for the development of new technological and creative solutions thereby generating value to the customers. The visionary element of Jeff Bezos had contributed in the development of the online retailing store concept (Stone, 2013).
The success of entrepreneurship activities is generated in the competitive global sphere such that the same is effectively synchronized with needed market orientation. Entrepreneurial activities streamlined with market orientation contribute in assessing the needs and expectations of consumers and thereby in ideally fulfilling the same. The synchronization of marketing orientation with entrepreneurial activities helps the entrepreneur in identifying and targeting new business opportunities and thereby capitalizing on such for developing new products and services and also for gaining needed expansions into other foreign markets. Entrepreneurial activity guided by market orientation helps the entrepreneurs in targeting premium customer and market segments and thereby in generating high priced products for generating needed profitability (El-Gohary, 2013).
The marketing orientation approach of Steve Jobs contributed in the generation of digital products reflecting effective designs and features that would meet the technological and digitalization needs of customers. Steve Jobs developed on his intuition in understanding and anticipating the needs of customers that contributed in the development of innovative products with sophisticated and modernized designs that were customized for addressing the diversified needs of Apple’s customers (Schein, 2016).
The key success for an entrepreneurial activity is generated in terms of effectively identifying the different marketing mix elements that would be effectively incorporated for marketing and promoting the product in the target market. Herein, the entrepreneur is required to identify and evaluate the different types of product assortments and mixes with also developing the right price strategy that would help in generating an appeal to the target customers. Further, development of the right type of place and promotion mix helps the entrepreneur for reaching and in generating needed awareness about the product or service to the customer. Decisiveness is required on the part of the entrepreneur regarding development of the right type of budget concerning the generation of place and promotion mix for addressing the needs and expectations of the target customers (Chaston, 2015).
The development and marketing of Kindle as an online or digital platform for purchasing books and magazines serve as an effective example of incorporation of marketing mix by Jeff Bezos. The e-reading solution for newspapers, magazine and book readers were marketed by Amazon under the brand umbrella at $359 and were promoted on a larger scale through use of print, broadcasting and social media. The e-reader enabled tab was made available both in an online and physical fashion for helping customers in conveniently gaining access to the product (Chaston, 2015).
Old vs. New Marketing
The entrepreneurial activities associated with old vs. new marketing spheres are reflected in the following illustration.
The above matrix reflects that new firms to operate in new markets are required to focus on the development of new products or services such that the same is marketed in the form of bundles for realizing the price or value. Similarly, for old firms to compete in new markets requires the same to generate needed internationalization of products and services. New firms required to develop their market presence in old market is required to focus on acquiring other companies and also focus on generating needed reorganization in the internal management. Finally, old firms to market their products and services in old markets are required to carry on business activities in a usual fashion without aiming for growth (Jan, 2014).
Balance between Customer Focus and Selling Focus
The difference between customer and selling focus approach of business institutions are reflected as under in the following illustration.
Two Potential Risks
Funding for the ‘Proof of Concept’ was identified by Hugh Kemp as difficult to be achieved. The Front End of the vehicle was required to be funded for helping in proving the worth of the car
Issue regarding tailoring the application to the investors was also found to be risky.
Suggestions for Managing the Risks
The development of prototypes with also surveying of consumer demand regarding narrow cars and the experiences of customers regarding use of the prototypes would help Hugh Kemp in applying to the mindset of investors for generating of funds.
Application of Entrepreneurial Theories to the Case
Application of Opportunity Based Theory
The case of Hugh Kemp reflects the case of the Opportunity Based Theoretical aspect of Entrepreneurship. Herein, entrepreneurs focus on taking advantage of any emerging opportunity owing to changes in the social, technological and also cultural parameters. In the case it is observed that Hugh Kemp being involved with the automobile industry focused on the development of cars that would help customers and commuters in easily and effectively reaching their destinations in a time and cost effective fashion. The car tends to consume around 30 percent of the normal fuel consumption made by other vehicles thereby helping in meeting the innovation and cost effectiveness needs of customers (Pauceanu, 2016
Application of the Psychological Theory
Hugh Kemp’s entrepreneurial style aptly reflects the attributes of the Psychological Theory of Entrepreneurship. Hugh Kemp focused on meeting the innovative needs of niche customers that focus on riding of Narrow Cars that would easily move between gaps of vehicles stuck in traffic and thereby reach their destinations in a faster manner. The Narrow Vehicle would help in addressing the needs of customer convenience in an effective fashion (Pauceanu, 2016).
Application of Entrepreneurial Marketing Theories to the Case
Aspect of Marketable Entrepreneurship
The entrepreneurship aspect of Hugh Kemp regarding the development of the narrow cars can be effectively studied based on the theory of marketable entrepreneurship. Market oriented entrepreneurs contribute in serving the needs of customers in an effective fashion through the generation of the right type of product and at the right time for addressing consumer need. The market oriented entrepreneurs focus on collecting effective information from the market and thereby contribute in researching and developing on developing effective and potential products. Hugh Kemp analyzed that the generation of the narrow car would help customers in earning a new experience regarding personal transport, develop an effective market segment for niche customers and also a new technology for suppliers to roll on. Hugh Kemp also featured the Narrow Car as an alternative choice for both personal and city transport purposes (Pauceanu, 2016).
Entrepreneurial Market Orientation Theory
The theory of Entrepreneurial Market Orientation or EMO reflects on the development of new capabilities and potentials regarding the products or service for meeting the needs of target customers. Herein, Hugh Kemp focused on the development of the narrow car model that would serve both the needs of customers regarding riding of bikes and also cars. The Narrow Cars would be developed to reflect needed agility on one hand while also have the capability of bearing carrying loads like cars (Pauceanu, 2016).
Evaluation of the Entrepreneurial Activities of Hugh Kemp
The entrepreneurial activity of Hugh Kemp is associated with citing of potential market opportunities concerning the need for narrow cars and thereby in formulating a car model reflecting the agility and flexibility of bike and a load bearing capacity like cars. Hugh Kemp also reflected the car model to be efficient both in terms of fuel consumption and in reducing greenhouse emissions.
Criticism of Hugh Kemp’s Entrepreneurial Activity
The above entrepreneurial approach of Hugh Kemp can be effectively criticized in that the same lacked the requirement of development of prototypes such that the efficacy of the same can be tested in target market settings. Feedback from survey conducted on consumer experiences regarding using the narrow car would help in generating more effective models.
NCC (Narrow Car Company)
Evaluation of the Marketing Activities of NCC
The NCC ideally focused on developing a niche market segment that would focus on using narrow and smart cars for conducting travel in a faster and efficient fashion.
Criticism of the Marketing Activities
The marketing activities can be further developed by NCC in terms of generating personal greetings to target customer segments for visiting car showrooms of NCC with also conducting of other Public Relation activities.
Innovativeness of Two Entrepreneurial Activities of NCC
The Narrow Car Company of Hugh Kemp contributed in the development of innovative car models for meeting the emerging needs of the customers. It focused on anticipating the needs of customers and in developing effective insights for developing the narrow car.
The Narrow Car Company would contribute in the identification of new market segments and thereby contribute in the meeting of their demand through the production of cars reflecting combined features of bikes and cars.
Criticism of Two Aspects of NCC’s Entrepreneurial Activities
The Narrow Car could have been launched in the market by Hugh Kemp through the development of an app for mobile phones and other gadgets such that the same can be availed in a convenient fashion by customers for meeting their commuting needs in a shared fashion. The same would enable in generating greater mobility and awareness for the car model.
Hugh Kemp was required to incorporate ERP software such that the same would help in integrating the warehouses, supplier stations and the marketing outlets for the cars. It would help in tracking demand changes of customers and also in tracking the movement of merchandises. The same would help in generating a realistic approach to its marketing (Jan, 2014).
Innovativeness of Two Entrepreneurial Marketing Activities of NCC
The entrepreneurial marketing approach of NCC can be further developed through helping the same gain larger market exposure through the incorporation of different types of media like print, broadcasting, social and also digital media for marketing and promoting the product to the effective market segment. The incorporation of social and digital media for its marketing would contribute in enhancing the level of innovation attributed to identification and creation of niche market segments.
Further, the financing options regarding marketing of the Narrow Car can be enhanced by largely promoting the product through helping NCC to participate in car expos and trade fairs. The same would help in generating greater awareness for the model and also in encouraging growth of flow of investments (Matthews & Brueggemann, 2015).
Criticism of Two Aspects of NCC’s Entrepreneurial Marketing Activities
Hugh Kemp needs to focus on formulating and storing a large database of customers regarding small and innovative automobiles. The same can be optimally used by NCC’s management for developing an effective relationship with the customers through the generation of newsletters and gift cards in a personal manner.
Further, apart from the generation of leaflets and distributing the same to customers visiting automobile outlets and trade fairs concerning automobiles, NCC can aptly focus on the development of a Facebook and Twitter account for effectively interacting with customers and also developing on word-of-mouth campaigning (Pauceanu, 2016).
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