Chapter 3: Generating and Exploiting New Entries

Question 1

Name three stages of New Entry Opportunities

Answer 1

1) New Entry Generation
2) New Entry Exploitation
3) Feedback loop of resources

Question 2

New Entry Generation

Name components and what they are composed of:

Think of box diagram

Answer 2

1) Knowledge
- Education
- Background
- Expertise
- Experience

2) Resources
- CA$H
- Network
- Access to the Chain
- Access to qualified Staff

3) Market Opportunity
- Scalability
- Medium to Long-term Potential
- Addresses Customer Market Gap (Wants / Needs)

–> ASESSMENT OF NEW OPPORTUNITY

Question 3

New Entry Exploitation

Name components

Answer 3

–> ASSESSMENT OF NEW ENTRY OPPORTUNITY

1) Entry Strategy
2) Risk Reduction Strategy
3) Organization

–> ASSESS FIRM PERFORMANCE

Question 4

Feedback Loop of resources

Explain how this works

Answer 4

1) Assess firm performance
2) Return to start point to reassess knowledge and resources if necessary
3) Continue process

Question 5

First Movers

Advantages

Answer 5

1) Cost
2) Less Competition
3) Secure important channels
4) Prime position for customers
5) Expertise from participation (participation in market)
6) Erect barriers to entry and imitation
7) Build switching costs

Question 6

First Movers

Disadvantages

Answer 6

1) Environmental Instability
2) Customer Uncertainty
3) Short Lead Time

Question 7

Risk

Name 3 Risk Reduction Strategies

Answer 7

1) Scope
- Growth (ex: new Flavour)
- Competition

2) Imitation

3) “me-too”
- Minor variations (ex: iphone case)