Chapter 5

Question 1

Market Fit

Answer 1

Price, quality, needs, market demand, safety, psychological factors

Question 2

Cost fit

Answer 2

cost influenceability: high then decreases
cost specification: fixed
cost incurrence: costs during the late stages

Question 3

first movers

Answer 3

very innovative firms
they get brand loyalty
short term monopoly
develop experience
economies of scale

But high R&D cost
undeveloped supply chains

Question 4

fast followers

Answer 4

higher R&D but mid risk in entering market

Question 5

late follower

Answer 5

very low risk enters a well-developed market

Question 6

best to enter when

Answer 6

Clear customer needs.
Superior to prior solutions.
Mature technologies.
Complementary goods boost acceptance.
Competitive threat level.
Early entry benefits adoption; delay risks loss.
High R&D costs for first movers.
Budget supports market entry.
Strong reputation eases uncertainty.