Advanced entrepreneurship - intrapreneurship & entrepreneurship Essay

Advanced entrepreneurship - intrapreneurship & entrepreneurship - Essay Example The purpose of this paper is to launch an innovative new product in its industry through intrapreneurship describing the strategies employed, factors considered and challenges one would have likely faced in the process. The second part of the paper also explores how different the approach would have been and the changes in the marketing environment if the product had been introduced into the market by way of entrepreneurship. The main purpose of the activity is to shed light on the difference between intrapreneurship and entrepreneurship in a practical setting. Research for this paper has been conducted chiefly from the internet as well as some available course material and the strategies detailed in the same have been compiled based on real case studies as well as the theory studied during the course. Part 1: Product Idea Product The product chosen for the purpose of this activity is a P2P (peer to peer software) file transfer client similar to the ‘Torrent’ clients enc ountered today with modification that it is used exclusively for the exchange of licensed audio and video files. There is currently no player in the industry that offers original DVD videos of movies and series recently out of cinemas licensed by the proprietor for free. Piracy through other P2P clients poses a high risk to the (downloader and the distributor of such illegal media) being prosecuted by the EFA when discovered and also causes considerable losses to the industry. The innovation in the product lies in the fact that a good quality print of the media is available for free to any user, which negates the requirement for piracy. The revenue losses incurred by the proprietor of the media (in DVD sales) can be recovered through placement of advertisements in the media.1 Introduction into the Market The approach selected to introduce this new product (dubbed VideoGenie) into the market is Intrapreneurship. Developing software of this caliber as well as maintaining a team that c an service clients and develop business, coordinate licensing deals, insert advertisements into videos, maintain servers for downloaders and publicize the product would require a huge infusion of capital. Despite that, there is no guarantee of the product becoming profitable in the first year after its launch. Therefore, it seems more sensible to find a company to fund its development and launch and bear the losses rather than invest one’s own money into it. To decide how the product is introduced into the market, one has to consider the demographic and psychographic profile of the target group / audience. Target Audience Demographic Profile Since the medium for distribution of the product chosen is the internet, there are no geographic constraints. The age group of the target audience will range from 16 to 45 years as the target audience needs to comprise cinema / series/ sitcom enthusiasts who are savvy enough to use the internet for downloading these files. There is no bar rier relevant to the occupation, marital status or gender of the target group. Psychographic Profile The customer targeted by this product includes cinema/ series buffs and a patron of any form of entertainment that is currently sold on DVD (and is plagued by piracy). The customer should be internet savvy, have an internet connection that allows frequent and heavy downloads and intent on saving money (i.e. reluctant to spend on purchasing the DVD). The customer should also be an opinion leader among his / her friends to increase word-of-mouth publicity of the product. The product also targets people who are averse to using pirated media and are afraid of legal action taken by intellectual proprietors for the same. The distribution of the software can best be done over the web. Since the software will be available for free and it provides licensed versions of videos that would otherwise be downloaded illegally, it makes most sense to distribute it