There are no institutional barriers to overcome such as associations, regulatory authorities or other third-party organizations to which customers look for advice and guidance. It is the cheapest and most effective form. An advertising requirement increases the venture capital requirement. If the new venture can operate quietly and without fanfare, it reduces the competitive potential. Invisibility is a true virtue in this sense.
Buyers seek solutions that are no more costly than the problem currently endured.
Your comparison of each factor to the new venture provides a summary that is a measure of the venture s probability for success and also an indication of the amount of startup capital required. In the endeavor to deliver greater value to customers and create comparable value at lower cost than competitors, the entrepreneur must consider and carry out hundreds of activities to market the firm s products. While the entrepreneur s ability to carry out these activities better than the competition is important to operational effiency, being able to perform different activities or similar activities in ways that are different from the competition are the essence of strategic positioning. A strategic position is created when every activity is directed toward strategic choices that deliver a sustainable competitive advantage. Tradeoffs are necessary.