Chapter 4: Analyzing the Industry and Market

Question 1

In a company, who is the boss?

Answer 1

THE COSTUMER. They can fire everyone simply by shopping somewhere else.

Question 2

Industry

Answer 2

Grouping of businesses that interact in a common environment as part of a value chain for a particular good

Question 3

First Customer

Answer 3

Segment of market that needs the product or service the most

Question 4

Keystoning

Answer 4

Retailer typically at least doubles the cost in setting the price to consumers

Question 5

Customer Empathy

Answer 5

Take the time to understand customers problem in depth

Question 6

Market Turbulence

Answer 6

Rate at which customers tastes and preferences change

Question 7

Competitive Turbulence

Answer 7

Rate at which competitors in the market change their strategies

Question 8

Goals for Market Research

Answer 8

Identify first customer
Estimate demand
Identify future customer segments

Question 9

Two reasons to study the industry you will be entering?

Answer 9

1) It represents the external environment in which the business will be operating.
2) Can the entrepreneur make a profit significant enough to make the effort worthwhile?

Question 10

When will return on investment be strong?

Answer 10

If there is no competition in the market