what is the average size of a company in the industry?
TRANSCRIPT
What is the average size of a company in the industry?
Objectives• Examine industry structure, with a focus on
company size, in the context of entrepreneurial industry status
• Explore the impact of average company size on your success as an entrepreneur
MacroeconomicChange
Entrepreneurial Motivation
Entrepreneurial Behavior
Industry
Condition
IndustryStatus
Industry lifecycle
Industry structure
Opportunity Identification
ValueCurve
Competition
The Opportunity Analysis CanvasTM
Entrepreneurial Mindset
Defining company size
“the average size of companies (employees, resources, etc.) within an industry”
• Capital intensity• Advertising intensity• Company concentration• Average company size
The “ideal” competitor size• Industries with a small number of small-
sized competitors present the preferred scenario for new ventures
• Competing with a few small competitors is more advantageous for entrepreneurs versus competing with many large competitors
Ways to grow bigger faster cheaper• Outsource
– Not always offshoring– Legal, accounting, technology, marketing, etc.
• Partnership– Share in the risks and rewards
• Joint venture– Formal, on-going partnerships
Summary on industry status• New ventures perform better in younger
industries with immature industry structures– Less competition versus established industries– Capital intensity and advertising intensity are
often low in young industries, and it is affordable for new entrants to enter and compete effectively
• Young industries also offer a common learning curve amongst all competitors, and a more even playing field for competition