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Summary Of Strawberry Man By Hayagreeva Rao

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Hayagreeva Rao argues that traditional market forces, like supply and demand, are not the only factors that determine the success of an innovation. Rao illustrates this with the example of market rebels who he defines as activists who challenge the existing status quo. Rao contends that ultimately, market rebels determine whether or not a new idea or product is welcomed or shot down by consumers. In other words, the joined hands of activists and their supporters can undermine the forces of the invisible hand. According to Rao, market rebels rally support by articulating a hot cause and strategizing a cool mobilization. The hot cause is statement of belief for or against the innovation that draws on emotions and inspires action. The cool mobilization …show more content…

Mark Granovetter stresses the importance of examining how political, cultural, and social environments shape markets, especially given the fact that economists often tend to ignore these social factors in their analysis of the economy. Embeddedness relates to innovation and entrepreneurship in that an entrepreneur’s success in a certain market depends largely on how embedded he or she is in the social relations of the community they are doing business with. The case of Freddy, the Strawberry Man, illustrates how entrepreneurs draw on culture to find and capitalize on opportunities in the marketplace. For example, Freddy was in tune to the fact that his suppliers and customers relied heavily on credit as a means of payment. He noticed that his competitor’s producers were not getting paid in a timely fashion, and therefore, were willing to sell their product to Freddy instead since he offered prompt payments. Freddy also gained a solid customer base by selling his berries on credit and offering a generous payment window. By understanding the needs of both his suppliers and customers, Freddy was able to break into the strawberry business and became a largely successful entrepreneur. The main takeaway from Freddy’s story is that being a successful entrepreneur requires more than just having adequate knowledge of business practices and the market activity; one must also be

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