Industry and Competitor Analysis Form

III. TheFiveCompetitiveForcesThat

DetermineIndustryProfitability

B.ThreatofNewEntrants

BarriertoEntry Explanation

Strengthofmanagement

team

Ifastart‐up putstogethera world‐classmanagement

team,itmaygivepotentialrivalspauseintakingonthe

start‐upinitschosenindustry.

First‐moveradvantage

Ifastart‐up pioneersanindustryoranewconcept

withinanexistingindustry,thenamerecognitionthat

thestart‐upestablishesmaycreateaformidablebarrier

toentry.

Universityof Zurich

ISU– InstituteforStrategyandBusinessEconomics

UlrichKaiser

AprimerinEntrepreneurship

Springsemester2008

Passionofthe

managementteamand

employees

Iftheemployeesofastart‐uparehighlymotivatedbythe

uniquecultureofastart‐up,andanticipatelargefinancial

rewardsthroughstockoptions,thisisacombinationthat

cannotbereplicatedbylargerfirms.Thinkoftheemployees

ofabiotechfirmstryingtofindacurefor

adisease.

III. TheFiveCompetitiveForcesThat

DetermineIndustryProfitability

B.ThreatofNewEntrants

BarriertoEntry Explanation

Uniquebusinessmodel

Ifastart‐up isabletoconstructauniquebusinessmodel

andestablishanetworkofrelationshipsthatmakesthe

businessmodelwork,thissetofadvantagescreatesa

barriertoentry.

Internetdomainname

SomeInternetdomainnamesareso“spot‐on”inregard

toaspecificproductorservicethattheygiveastart‐up

ameaningfullegupintermsofe‐commerce

opportunities.

Universityof Zurich

ISU– InstituteforStrategyandBusinessEconomics

UlrichKaiser

AprimerinEntrepreneurship

Springsemester2008

Inventinganew

approachtoanindustry

andexecutingtheideain

anexemplaryfashion

Ifastart‐up inventsanewapproachtoanindustryand

executesitinanexemplaryfashion,thesefactorscreate

abarriertoentryforpotentialimitators.

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