Entrepreneurial Firms and Declining Industries

What is one of the possible challenges faced by entrepreneurial firms when competing against established suppliers?

Difficulty gaining initial adoptions from customers

Why are fragmented industries typically considered easy to enter?

Firms of relatively equal size

What is a key consideration for an entrepreneur looking to enter an industry experiencing declining demand?

Technological soundness of the product

Why do emerging industries provide attractive opportunities for new ventures?

Potential for rapid leadership position Signup and view all the answers

What may hinder an entrepreneur's ability to gain a foothold in a market against current suppliers?

Established relationships with current suppliers Signup and view all the answers

Why are there no barriers to entry for new competitors in fragmented industries?

Firms of relatively equal size Signup and view all the answers

What is one drawback of competing against industries with established relationships with current suppliers?

Difficulty in gaining initial adoptions from customers Signup and view all the answers

What must an entrepreneur ensure in order to survive a lengthy battle in gaining a foothold in the market?

Confidence in the new product's technological soundness Signup and view all the answers

What must an entrepreneur ensure in order to compete effectively in a fragmented industry?

A technologically sound new product Signup and view all the answers

Why are fragmented industries normally easy to enter?

They are comprised of firms of relatively equal size Signup and view all the answers

Why are emerging industries considered to provide the best opportunities for new ventures?

Potential for rapid growth and leadership position Signup and view all the answers

What type of industries provide the best opportunities for new ventures?

Emerging industries with unrecognized customer needs Signup and view all the answers

What makes it easy to enter a fragmented industry?

Firms of relatively equal size Signup and view all the answers

What should an entrepreneur investigate when considering entering a market niche experiencing growth?

If the growth trend is short-lived or has the potential to continue Signup and view all the answers

Why should an entrepreneur carefully investigate market niches experiencing growth?

To establish if growth trends are short-lived or sustainable Signup and view all the answers

Why do declining industries face challenges despite some market niches experiencing growth?

As a result of decreasing demand for their products or services Signup and view all the answers

What is a key factor that can help an entrepreneurial firm succeed in a declining industry?

Introduction of a business model attracting copycat competitors Signup and view all the answers

What is a characteristic of industries that are easy to enter but also lack barriers for new competitors?

Comprised of firms of relatively equal size Signup and view all the answers