The attributes of successful modern entrepreneurs, how to

always be on the top

Pr Alain NdediEmail: ndedi.alain@gmail.com

Follow me @ T Alain_Ndedi

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Problem Statement

• Many are struggling to keep their company afloat, and need some insights on how to remain competitive…

• Entrepreneurship Education is a new field, and must be explained to potential and current entrepreneurs

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Objectives of this presentation

Understand:

• Linkages between ‘staying afloat’ and company growth

• Linkages between ‘being on the top’ and constant innovation

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What can we learn

Some examples on how the writting on the wall or imminent doom or misfortune of valable brands is experienced when these valuable

companies forget the basics rules on how to stay afloat in the market

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Origin of the writing in the wall

The expression originates from the Bible book of Daniel, Chapter 5, from the handwriting on the wall that was witnessed at a banquet hosted by king Belshazzar.

As those at the feast profaned the sacred vessels pillaged from the Jerusalem Temple, a hand appeared and wrote on the palace wall the words,

Mene, Mene, Tekel, Upharsin23-04-12

Link with our talk

As Belshazzar who was the supreme king, but experienced destruction after all….

Being the Most Valable Brand is not a guarantee that you will remain there, specially if the company ignores basic some rules in entrepreneurship

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Case study :Nokia

Blackberry

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Nokia

Nokia was, at its heart, a hardware company rather than a software company—that is, its engineers were expert at building physical devices, but not the programs that make those devices work.

In the end, the company profoundly underestimated the importance of software, including the apps that run on smartphones.

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Difference between Nokia and Apple

Nokia’s development process was long dominated by hardware engineers; software experts were marginalized.

Executives at Apple, in stark contrast, saw hardware and software as equally important parts of a whole; they encouraged employees

to work in multidisciplinary teams to design products.

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Lesson learnt

Never underestimate certain units/employees within your organisation…

Minor units today may add more value to your organisation or be source of innovation and efficiency in the future

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Nokia Failed the move to 3G and 4G

It wasn’t just that Nokia failed to recognize the increasing importance of software. It also underestimated how important the transition to smartphones would be. Nokia is a classic case of a company being enthralled by its past success.

Nokia was, earning more than 50 % of all the profits in the mobile-phone industry in 2007, and most of those profits were not coming from smartphones.

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Nokia was Confortable by past success

Nokia overestimated the strength of its brand, and believed that even if it was late to the smartphone game it would be able to catch up quickly. Nokia continued to insist that its superior hardware designs would win over users.

In 2008, Nokia was said to have one of the most valuable brands in the world. But it failed to recognize that brands today aren’t as resilient as they once were.

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Lesson learned

Entreprenership has taught people to expect constant innovation; when companies fall behind, consumers are quick to punish them.

Late and inadequate for Nokia, it was a deadly combination.

Nokia had applications, had internet phones, had all that functionality . . . but all user testing pointed to the fact that no-one wanted touch phones. Nokia fails to listen….

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One Nokia insider said

‘I look back and I think Nokia was just a very big company that started to maintain its position more than innovate for new opportunities.

All of the opportunities were in front of them, but the key word is a sense of urgency’

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Blackberry

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BlackBerry Limited

Formerly known as Research In Motion Limited (RIM), is a Canadian

telecommunication and wireless equipment company launched in

1994 best known as the developer of the BlackBerry brand of smartphones and tablets

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RIM

Originally a dominant innovative company in the smartphone market with 43% US market share in 2010, the company has in recent years declined precipitously

On September 23, 2013 the company signed a letter of intent to be acquired by a consortium led by Fairfax Financial.

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What went wrong?

While RIM's was attractive to corporate customers, their handsets were sometimes considered less attractive to consumers than iPhone and Android smartphones.

The company also faced criticism that its hardware and operating system were dated and unappealing compared to the competition and that the browsing capabilities were poorer.

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BlackBerry never tried to get a broader portfolio going and it is stuck in the position of playing the hand it has been dealt rather than one it could have created. What BlackBerry did was try to improve its (1)performance, (2)improve its product and (3) build a stronger ecosystem. These were all ways of developing the core business on.

Its options portfolio needed to reach new markets, with new products, because it had already been outcompeted not just by Apple but also by Samsung

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Workforce reductions

In June 2011, RIM announced the revenue would drop for the first time in nine years, and also unveiled plans to reduce its workforce.

In July 2011, the company cut 2,000 jobs, On June 28, 2012, announced a plan to cut 5,000 by the end of 2013,

On July 25, 2013, 250 employees from Blackberry's research and development department and new product testing were laid off.

On September 20, 2013, Blackberry confirmed that the company will have a massive layoff of 4,500 employees by the end of 2013; approximately 40 percent of the company's workforce.

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RIM Lack of innovative posture

Since then, RIM has been embroiled in a series of lawsuits relating to alleged patent infringement.

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How to always be on the top

INNOVATIONAnd

INTRAPRENEURSHIP

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Peter Drucker contribution…

Peter Drucker states… Innovation is the specific function of

entrepreneurship. It is the means by which the entrepreneur either

creates wealth or endows existing resources with enhanced potential for creating wealth.

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Growth strategy

Market Penetration

The only way to grow using existing products and markets is to increase market share.

One way to increase market share is by lowering prices. For example, in markets where there is little differentiation among products, a lower price may help a company increase its share of the market

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Growth strategy

Market ExpansionA market expansion growth strategy, often called market

development, entails selling current products in a new market to find new uses for its product.

For example, a small soap distributor that sells to retail stores may discover that factory workers also use its product.

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Growth strategy

Product ExpansionA small company may also expand its product line or

add new features to increase its sales and profits.

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Growth strategy

DiversificationGrowth strategies in business also include

diversification, where a small company will sell new products to new markets. This type of strategy can be very risky.

A company need to plan carefully when using a diversification growth strategy. Marketing research

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Growth strategy

AcquisitionGrowth strategies in business can also includes an acquisition. In

acquisition, a company purchases another company to expand its operations.

An acquisition growth strategy can be risky, but not as risky as a diversification strategy. One reason is that the products and market are already established.

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Intrapreneurship

Organizational Factors

• Management Support • Work Discretion – tolerate failure

• Rewards / Reinforcement • Time Availability • Organizational boundaries – rules exist?

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Siyabonga

• Mi na som• Ka ye le boga

• Merci• Thank you

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