Entrepreneurial Firms and Declining Industries
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Questions and Answers

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

  • Inability to enter fragmented markets
  • Decreasing demand for products or services
  • Lack of technologically sound products
  • Difficulty gaining initial adoptions from customers (correct)

    • Why are fragmented industries typically considered easy to enter?

  • Lack of potential growth opportunities
  • Presence of dominant competitors
  • Firms of relatively equal size (correct)
  • High barriers to entry

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

  • Presence of dominant competitors
  • Technological soundness of the product (correct)
  • Erecting barriers to entry
  • Short-lived growth trends

    • Why do emerging industries provide attractive opportunities for new ventures?

    <p>Potential for rapid leadership position</p> Signup and view all the answers

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

    <p>Established relationships with current suppliers</p> Signup and view all the answers

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

    <p>Firms of relatively equal size</p> Signup and view all the answers

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

    <p>Difficulty in gaining initial adoptions from customers</p> 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?

    <p>Confidence in the new product's technological soundness</p> Signup and view all the answers

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

    <p>A technologically sound new product</p> Signup and view all the answers

    Why are fragmented industries normally easy to enter?

    <p>They are comprised of firms of relatively equal size</p> Signup and view all the answers

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

    <p>Potential for rapid growth and leadership position</p> Signup and view all the answers

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

    <p>Emerging industries with unrecognized customer needs</p> Signup and view all the answers

    What makes it easy to enter a fragmented industry?

    <p>Firms of relatively equal size</p> Signup and view all the answers

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

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

    Why should an entrepreneur carefully investigate market niches experiencing growth?

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

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

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

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

    <p>Introduction of a business model attracting copycat competitors</p> Signup and view all the answers

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

    <p>Comprised of firms of relatively equal size</p> Signup and view all the answers

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