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New forms of business strategy
a. Blue Ocean Strategy
b. Red Ocean Strategy
c. Venture Capital
d. Angel Investment
e. Acquisition or Merger
1. 2005- W.Chan Kim- 150 successful business strategy movements were executed in the last 100 years.
The conventional market breaks down the competition.
Uncontested market space creates and captures new market demand.
Blue Ocean Strategy will exist as a new strategy for some days.
Apple iPod introduces a digital music facility.
When Apple brings Apple iPod at first, bringing the digital music feature is considered as a Blue Ocean Strategy by Apple company. Blue Ocean Strategy is a completely new concept during a cycle.
Citycell introduces the call rate feature as the Blue Ocean Strategy in Bangladesh.
Amazon brings an online shopping idea in 1994.
Uber introduces the traveling facility as the Blue Ocean Strategy in Bangladesh.
Entrepreneurs have to take blue Ocean Strategy.
Tata Nano was introduced at BDT 500,000. The Tata company kept the sale price of Tata Nano as low as possible and keeping the lowest sale price of the car is a Blue Ocean Strategy by the Tata company. But the blue ocean strategy of Tata Nano did not become successful. Because Tata Nano was tagged as the poor' car and the fuel efficiency of Tata Nano was not up to the mark. As a result, tata Nano had to market out its car.
Red Ocean Strategy
One has to run one's business conventionally.
Due to the availability of the same product, many competitors exist in the market.
It follows the as-usual business pattern.
Venture capital: It is observed in developed countries such as the USA and India. It is one kind of investment pattern.
Financial organizations invest in potential start-up businesses.
Square is an investment partner of the Mutual trust bank.
Square has technical facilities and management skills but Square has no business idea. So, Square gives advertisements or circulars for collecting business ideas. Business-idea applicants submit their business ideas according to the advertisements or circulars of Square. Business-idea applicants have business ideas but they do not have technical facilities and management skills. Square stores business ideas from the business-idea applicants and gives technical facilities and management assistance to business-idea applicants. Business-idea applicants get technical facilities and management assistance as well as stable investments.
25% of the bank fund of the SME Foundation is allotted for small and medium enterprises.
No employment is seen in other sectors except for the garments industry.
5 to 6 years or 10 years are required to create certain infrastructure.
Venture Capital Funding Process
a. Business plan submission
b. Introductory conversation
c. Evaluation
d. Term sheet and funding
For instance, documents of 15 persons are evaluated and are funded from documents of 100 persons.
Angel-Investment
a. Funding process by venture-capital
b. High growth potential business
C. Many retired persons have money and time. It is easy for them to start a business.
d. Many wealthy persons and organizations will invest in the started businesses as equity shareholders of the started businesses. They act as partners of a partnership business.
e. A wealthy individual has time and he/she will invest in one's business.
f. Many entrepreneurs want to expand their business and they get angel investment.
g.Small cooperative organizations get angel investment. United Women act as angel investors in businesses.
h.Giant companies get angel investment. Facebook, Google, PayPal get back-up from angel investors.
Angel investors create an agreement for 5 to 7 or 10 years and the ending procedure of this agreement is stated in a written format. They have IPO in the share market. Angel investors will end the agreement leaving some share.
Acquisition or Merger
Acquisition refers to buying a business company from another business company. For instance, Robi bought Airtel.
Incubation
Different ranges of services are provided.
Basic service will be given at the time of starting a business.
Features of Incubation
a. Creating network
b. Providing expertise for financial management
c. Teaching presentation skill
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