Question

Provide an example of a business utilizing bootstrap marketing strategies. Discuss how these strategies are creating a competitive edge.

Answer 1

Bootstrapping strategy tries to build the company based on the personal finances instead of relying on external investors. An example for bootstrapping is the business where the business owner starts the business based on his personal savings and use the ecommerce platform for successfully marketing the product at low cost. The entrepreneur can utilize inexpensive marketing methods like social media and run the business successfully without external investors. The bootstrapping strategies create competitive advantage by giving control over decision making for the entrepreneur. As they do not rely on external sources, the business owners can take important decisions on product development and marketing without external pressure and creativity and innovation can be utilized well to create advantage over competitors.