Exam 3: Entrepreneurial Strategy: Generating and Exploiting New Entries

First movers can monitor changes in the market that might be difficult or impossible to detect for those firms not participating in the market.

Building customers' switching costs decreases barriers to entry for other firms.

The entrepreneur's market knowledge is deeper than the knowledge that could be gained through market research.

An error of omission occurs from the decision not to act of a new entry opportunity when in hindsight they should have.

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

First movers face:

Customer uncertainty can take all of the following forms except:

Market research,such as surveys,has limited effectiveness because it is often difficult for customers to articulate the underlying problems they have with a product or service.

Newness of a new entry is always an advantage.

Technological knowledge:

Franchising:

Which item is not part of the new entry generation stage in the entrepreneurial strategy process?

A narrow-scope market strategy:

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

Lack of informal communication systems is one of the assets of newness.

First movers suffer a cost disadvantage as they are not able to move down the experience curve.

A disadvantage of being a first mover is:

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity.

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

Identify the main disadvantages of being a first-mover.