Exam 3: Entrepreneurial Strategy: Generating and Exploiting New Entries

The entrepreneurial attributes of persistence and determination,which are so beneficial when the new venture is on the "right course,"

Which of the following statements is(are)true?

Adaptations necessary to meet changes in market demand are difficult because an organization resists change.

In order to be the basis for a firm's superior performance,a bundle of resources must be valuable,rare,and imitable.

A narrow scope strategy offers a small product range to a small number of customer groups.

A narrow scope strategy reduces the risks associated with competition.

Identify the main disadvantages of being a first-mover.

To overcome customer uncertainty,the venture should educate customer through demonstration and documentation on how to use the product.

Explain the difference between errors of omission and commission.

Franchising is an example of a new entry strategy that increases the risk of downside loss for the franchisees.

If a company has a superior product,customers will always be willing to pay a higher price for higher value.

By delaying entry,late movers:

The long-run performance of a firm is dependent upon the ability to generate and exploit numerous new entries.

Customers always embrace change in products and services.

A broad-scope strategy:

Identify and briefly explain the 4 ways that lead time can be extended by creating barriers to entry.Give examples where appropriate.

A narrow scope strategy is better than a broad scope strategy in an environment high in uncertainty.

Competition within an industry always has a negative effect on industry growth.

Environmental changes are highly unlikely in emerging industries.

Newness of a new entry is always an advantage.