Exam 2: Start-Up and the Need for Competitive Advantage

If a firm determines that two or more market segments have the potential to be profitable and then develops a unique marketing mix for each segment,it is called an unfocused strategy.

What strategy is used to implement niche marketing?

After the United States increased the duty on wax candles being sold from Asia into America,Joy focused more on Canada to sell her imported candles.Which trend is this related to?

Most new ventures are founded in "me,too" strategies differentiating themselves through superior service,higher quality or performance,or lower cost.

Building a competitive advantage requires commitment of considerable resources.

Compare prior work experience with accidental discovery and deliberate search as a source of start-up ideas.

Serendipity is a term describing a new product idea resulting from deliberate search activities.

Kyle plans to open a delicatessen in Halifax featuring new desserts that he first tasted during a vacation to Italy.What is Kyle's start-up idea based on?

A competitive advantage exists when a firm offers a product or service that is perceived by customers to be inferior to those of competitors,thereby promoting firm unprofitability.

Paul became distracted while barbecuing ribs.Although the ribs dried out he found the sauce had a delightful flavour.He added a few spices and now markets this new sauce to grocery stores.What was the source of Paul's new business idea?

Parmeet found that her first-year college students were less and less prepared to be academically successful.Using her teaching experience she created a business to provide weekend camps for students to become more prepared for their postsecondary education.Which approach did Parmeet use to identify her business idea?

Poor market positioning and a lack of a perceived advantage among customers in the target market are reasons why many new ventures fail.

George is fearful of a new company he sees at a tradeshow that is selling a similar product that his company currently distributes but at a much better price.Which component of SWOT is causing concern for George?

The general environment contains a number of important trends.Describe each of these.

Describe start-ups that are based on new technology ideas.

Sustainable competitive advantage is an established value-creating industry position that is likely to endure over time.

Returns from competitive advantage always increase over time.

A niche market strategy is particularly attractive to a small firm that is trying to escape direct competition with industry giants.

The single-segmentation strategy is usually the wisest strategy for small businesses during initial marketing efforts.

Jennifer is selling a line of sterling silver jewellery at the college she attends.Jennifer is identifying pieces that she can market most effectively to females in their 20s,females over 30,and males.What is Jennifer doing?