The paper "Managing Innovation and Entrepreneurship" is a perfect example of an assignment on management. Once one starts exploiting an entrepreneurial idea, it is usually difficult to keep the information related to the opportunity secret. In addition, such an entrepreneur cannot be able to create causal ambiguity concerning the way the idea is exploited (Crawford & Di Benedetto, 2003, p. 45-46). Thus, it is often difficult to use secrecy as a strategy to prevent imitation of an entrepreneurial idea. Thus to be able to prevent imitation, entrepreneurs employ barriers to imitation which prevents others from exploiting their newly innovated or invented opportunity.
This paper will discuss different types of barriers to imitation used by entrepreneurs, their effectiveness, and their necessity. Types of barriers to imitation used by entrepreneurs There are four main barriers to imitation employed by entrepreneurs to bar others from exploiting their innovative ideas (Gorchels, 2003, p. 123-124). These include acquiring control of the resources required for the exploitation of the opportunity, being involved in the establishment of legal obstacles that bar imitation, development of a reputation, and continue being involved in innovation to remain more competitive. When an entrepreneur gains control over the main resources needed for the exploitation of an opportunity, he/she is able to build a barrier to competition.
For instance, if a university student comes up with a business idea to begin selling food at a sporting event at the university, he can take control of the resources required for this business to avoid competition. Since there are few stadiums and arenas where sporting events take place, the student can sign a contract to lease all the space reserved for foodservice in the sporting arenas and stadium to stop potential competitors from exploiting the same opportunity (Crawford & Di Benedetto, 2003, p.
55). One can also gain control of resources to avoid competition by contracting providers of key resources and taking control of them. This can only apply where the resources required to exploit an opportunity have limited suppliers. For instance, a company like De Beer which sells diamond rings can take control of resources by buying all diamond mines with quality diamond games around the world since they are few.
This can prevent any competition since no new company can gain access to such resources (Timmons & Spinelli, 2004, p. 113-117).
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