Week 8: Chapter 8 Discussion
- hearwood5
- Mar 22
- 2 min read
Chapter 8 of Strategic Management: Creating Competitive Advantages outlines three types of entry strategies that are commonly utilized to launch a new business venture. These strategies include pioneering, imitative, and adaptive strategies. The pioneering strategy involves the entrepreneur or company developing a radically new product or service that changes the way that business is conducted in that industry. The imitative strategy involves the entrepreneur or company utilizing a product or service that was successful in a different industry and introducing it to their industry. The adaptive strategy involves the entrepreneur or company taking an existing idea and adapting that idea to fit the specific market they are trying to enter. Grainger has utilized all three of these entry strategies. Grainger implemented the pioneering strategy by being one of the very first MRO (maintenance, repair, operations) companies that adopted e-commerce models, which introduced new technology-based methods of purchasing MRO products that did not yet exist in its industry(1). Grainger implemented the imitative strategy by imitating Amazon’s successful endless-assortment e-commerce model, through its Zoro and MonotaRO subsidiaries. These endless-assortment subsidiaries allow for Grainger to not only offer high-touch services for complex needs, but to also offer endless-assortment scale online(2). Grainger implemented the adaptive strategy for its core business model of high-touch solutions. Grainger combines the traditional product distribution offered by MRO product distributers with coordinating specialized consultation services and technical support. Grainger adapted its business model to provide a complete solution to customers, instead of only providing products(3).
References:
1. MDM4005.indd
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