Entering New Businesses Selecting the Strategies for Success

Cover Entering New Businesses Selecting the Strategies for Success
Entering New Businesses Selecting the Strategies for Success
Charles a Berry
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Sector Integration: Optimum Entry Strategies The foregoing discussion has proposed optimum entry strategies for attractive new business opportunities based on their position in the FAMILIARITY MATRIX. EXHIBIT 10 integrates these proposals to form a tool for selecting entry strategy based on corporate familiarity.
TESTING THE PROPOSALS In testing the proposed entry strategies. Berry studied 14 new business development episodes that had been undertaken within one highly successful di- versified t
...echnological corporation. These episodes were all initiated within the period 1971 to 1977, thus representing relatively recent activity while still ensuring that sufficient time had elapsed for performance to be measurable.
■24- EXHIBIT 10 OPTIMUM ENTRY STRATEGIES MARKET FACTORS 1 Venture 1 Venture 1 1 Capital 1 Capital 1 NEW UNFAMILIAR Joint Venture 1 or 1 Venture ' Nurturing 1 or 1 1 Venture 1 1 Nurturing 1 or 1 Educational 1 or 1 Educational | Acquisition 1 Acquisition i Internal Market Internal Venture | Development Venture Capital 1 NEW or or or 1 Venture j FAMILIAR Acquisition Acquisition Nurturing | (or Joint Venture) or or I Educational, ' License Acquisition i Internal Internal Product Base Development "New Style" | BASE 1 Development | or 1 Joint 1 (or Acquisition) Acquisition | or 1 License | Venture | BASE NEW NEW FAMILIAR UNFAMILIAR TECHNOLOGIES OR SERVICES EMBODIED IN THE PRODUCT -25- The sample comprised 6 internal developments (3 successful, 3 unsuccessful), 6 acquisitions (3 successful, 3 incompatible) and 2 successful minority invest- ments of venture capital.


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