B205A Exploring Innovation and Entrepreneurship

Tim Lewis Fills a Niche

Tim Lewis owns T. A. Lewis Associates in Birmingham, Alabama, a consulting firm that designs telephone, data, and video systems. In this information age, Lewis’ success might seem expected, but it is based on experience, hard work, and finding a market niche.

In his hometown of Tuscaloosa, about 35 miles of Birmingham, Lewis gained both business and technical skills. While in high school, he worked as a salesperson at a local shoe store and served as a business manager for a local community choir.

After earning a degree from the University of Alabama, Lewis became an account manager and sales trainer for TMC, a new and growing long-distance phone company. When he went to many companies to sell long-distance service, executives would ask him many questions and seek his advice. The buyers wanted his opinion on fax machines, voice-mail systems, and copy machines. They wanted some knowledgeable person to give them fair and unbiased answers. Lewis offered suggestions, and most of the time his advice turned out to be right, so they kept asking him.

 It occurred to Lewis that a market niche might exist that no one was filling. When he studied the market, he learned that it was very difficult for small to medium-sized firms to get objective information on products. Most “consultants” were representatives of particular manufacturers; if clients were not interested in buying the products they were selling, they were not interested in giving advice.

After 18 months of research, Lewis prepared a comprehensive business plan. Then with the help of Birmingham Business Assistance Network (an incubator organization for small business), he ventured out on his own. The contacts he made while working with TMC provided an easy start. When he left TMC, he had accounts at seven Birmingham-area hospitals, and the business he got from them increased. That’s why a third of his customers are in health care industry.

He now has 18 full-time employees and is planning to expand by adding a training facility; Lewis continues to live in Tuscaloosa and drives 90 minutes to and from his facility in Birmingham. Of his commuting time, he says, “I’ve got a cellular phone and a beeper, so I can work on the way back.”

Answer the following questions: 

1. B 205A (Exploring Innovation and Entrepreneurship) has given us various tools and methods in analyzing and extracting a new idea which is considered to be valuable and profitable if implemented properly.

Explain in depth the five- step model described in B205A.

Explain the key factors that influence Tim to exploit the entrepreneurial opportunity provided in the case using the five- step model described in the course. (500 words, 20 marks)

2. Based on the case above, Provide two examples and explain them in details to evaluate Tim’s approach to identifying the market nicheusing characteristics of successful entrepreneurs.  (350 words, 20 marks) 

3. The key to innovation and entrepreneurial success lies in the ability to make effective use of individual and shared knowledge

Explain whether Tim is an inventor or innovator. Your answer must be supported and justified in relation to course materials presented in B205A (300 words, 10 marks) 

Question one (500 words, 25 Marks)

During an enterprise life cycle, entrepreneurs have to overcome different financing challenges.

Explain the financial challenges at each stage of the life cycle and explain how entrepreneurs can deal with them by explaining the right source of finance they can secure at each stage. Support your answer with examples

Question Two (500 words, 25 Marks)

Networks are proven to be relevant in the context of innovation and entrepreneurship. Explain the main features of an entrepreneurial network including the role of personal contact networks and how they are developed overtime. Explain, also, at least three approaches can be used to manage network relationships. Support your answer with examples