FALSE 20. (p. 65) The assessment of a new entry attractiveness is less about whether this opportunity "really" exists or not and more about whether the entrepreneur believes he or she can make it work. TRUE 21. (p. 65) First movers suffer a cost disadvantage as they are not able to move down the experience curve. FALSE 22. (p. 65) First movers can monitor changes in the market that might be difficult or impossible to detect for those firms not participating in the market. TRUE 23. (p. 66) If there is a poor fit between its resources and the external environment, then the firm will not enjoy superior performance. TRUE 24. (p. 66) Key success factors are the requirements that any firm must meet to successfully compete in a particular industry. TRUE 25. (p. 67) Emerging industries are industries that have been around for years but are just starting to experience explosive growth. FALSE 26. (p. 67) Environmental changes are highly unlikely in emerging industries.
FALSE 27. (p. 67) By overestimating demand, the entrepreneur will suffer the costs of under capacity. FALSE 28. (p. 67) Entrepreneurs that delay entry have the advantage of more information about market demand. TRUE 29. (p. 68) Technological uncertainty is eliminated by a superior technology. FALSE 30. (p. 68) Adaptations necessary to meet changes in market demand are difficult because an organization resists change. TRUE 31. (p. 69) Customers always embrace change in products and services. FALSE 32. (p. 69) To overcome customer uncertainty, the venture should educate customer through demonstration and documentation on how to use the product. TRUE 33. (p. 70) The late mover is able to operate in the industry for a grace period under conditions of limited competition. FALSE 34. (p. 71) Building customers' switching costs decreases barriers to entry for other firms. FALSE 35. (p. 71) Competition within an industry always has a negative effect on industry growth. FALSE 36. (p. 73) A narrow scope strategy offers a small product range to a small number of customer groups. TRUE 37. (p. 74) Using a broad scope strategy helps to reduce the risk of market uncertainty. TRUE 38. (p. 74) A narrow scope strategy is better than a broad scope strategy in an environment high in uncertainty. FALSE 39. (p. 73) If a company has a superior product, customers will always be willing to pay a higher price for higher value. FALSE 40. (p. 73) A narrow scope strategy reduces the risks associated with competition. TRUE 41. (p. 74) Imitation of other products increases the downside loss associated with new entry. FALSE 42. (p. 75) Franchising is an example of a new entry strategy that increases the risk of downside loss for the franchisees.
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