Failure in Business Ventures Entrepreneurs Essay

Pages: 5 (1455 words)  ·  Bibliography Sources: 4  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

SAMPLE EXCERPT . . .

Siebel and eBay differ greatly in their outlook due to perceptions about the market place. Both companies had a successful startup, but Siebel management failed to understand the importance of customer retention. Tom Siebel failed to recognize the factors pulling the business down and blamed the management team. Siebel failed to counter competition by increasing innovation and efficiency of existing products. Kerstetter (2003) notes that, Siebel outlook differs from that of eBay due to the failure of Siebel to acknowledge and work on customer satisfaction. The company denies they have customer satisfaction problems. eBay Company's outlook improves because of the focus attached to clients' satisfaction and regular innovation. eBay's customer and partners interactive approach to the market makes it successful and draws a bigger portion of the market to its side. eBay's ability to diversify and accommodate several forms of businesses in its systems makes it unique and relevant in its market.Download full Download Microsoft Word File
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TOPIC: Essay on Failure in Business Ventures Entrepreneurs, Assignment

A comparison of successful and failing companies provide useful lessons to startup companies on how best to determine the success or failure of businesses. This comparison gives knowledge to entrepreneurs and management teams of startup firms on the importance of retaining the market reputation for their products and services. After a successful initial startup, most companies forget the need to retain their customers and improve efficiency of their products. Delays in improving the products and effective handling customer complaints lead to chasing the customers to competitors. Baron (2006) explains that, entrepreneurs and management teams must identify new opportunities and methods to stay relevant in the marketplace for their goods and services. In order to stay on the market and overcome challenges after the startup, entrepreneurs should use the cognitive framework they possess to connect the dots between the various factors that might have an impact on the business.

Companies that still perform well after the startup period have suitable knowledge about the demographics of their target markets and have reliable financial backups. A strong management team is necessary for the success of the company. The management should identify issues that affect the business to avoid blaming each other like the case of Siebel Company. The important lesson from this comparison is about customer satisfaction and retention. A successful company can retain its customers and meet their expectations for a longer period after the startup period. Retaining and attracting new customers after the startup period makes the overall business venture successful.

In order for a startup company to attain long-term sustainability, the idea for the business should have logic and clarity. The business idea should have a long-term market potential, and the product or service is recognized in the marketplace. A start-up company should design an efficient business plan and marketing strategy that will ensure a long-term sustainability. Both Siebel and eBay companies in our example had a successful startup period due to efficient business planning. Siebel failed to sustain itself due to lack of product innovation and inability fulfill customer wishes. The voice of customers towards the products or services of a company are critical for business success. The eBay Company recognizes the importance of customer queries. The company developed the voice of the customer program where buyers and sellers meet after a couple of months and get information about their performance and where they should improve (Hof, 2003).

Long-term sustainability of a startup company relies on adequate leadership and competent management team. Strong leadership should help to coordinate the business firm and enable the participants to function in the various stages of development. A competent management team that will ensure long-term sustainability should be in a position to negotiate better terms with the external participants such as financiers and even the government.

References

Kerstetter, J. (2003, June 2). Can Siebel stop its slide? Missteps -- and tough rivals -- undermine the software giant. Business Week 3835. Retrieved from http://www.businessweek.com/magazine/content/03_22/b3835081_mz063.htm.

Larson. R. (n.d.). Pages on Business Planning. Free Management Library. Retrieved from http://www.mapnp.org/library/plan_dec/bus_plan/bus_plan.htm.

Baron, R.A. (2006). Opportunity recognition as pattern recognition: How entrepreneurs

"connect the dots" to identify new business opportunities. The Academy of Management

Perspectives, 20 (1), 104-119.

Hof, R.D. (2003, August 25). The eBay Economy. The Company is not just a wildly successful startup. It has invented a whole new business world. Business Week, 3846. Retrieved

from http://www.businessweek.com/magazine/content/03_34/b3846650.htm. [END OF PREVIEW] . . . READ MORE

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