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

Why does it become necessary for some entrepreneurs to "pivot" at some point after start-up?

Entrepreneurs can evaluate their own capabilities and then look to new products or services they may be capable of producing.

What four conditions can erode a segmented market according to Michael Porter in his book,Competitive Advantage?

Which example shows an idea for a new start-up coming from a hobby?

A marketing competitive advantage is an approach that requires differentiation of a firm's product or service along some dimension other than cost.

George's company has sold a line of nature paperweights specifically targeted at middle-aged women who like to collect decorative items with natural themes.Sales have been declining steadily as market segments are increasingly sharing similar needs and desires.What is the most likely reason for this decline in sales?

A variation of the single-segmentation strategy is called niche marketing.

Harveer is starting a business to sell a product she feels will make fastening loads to truck beds more efficient.What is Harveer's new business idea based on?

Carey's mobile home health care business,which delivers products to the elderly,is thriving.What competitive advantage is this an example of?

What are the crucial capabilities that distinguish a company competitively and reflects its general focus and personality?

Rising demands of buyers or suppliers are threats to the venture.

Limiting sales to a single geographic area is a niche market strategy.

Core competencies are value-creating organizational capabilities that are unique to a firm.

Carey performed an analysis of his skills.He identified presentation skills as one of his attributes and developed a business to teach others how to present effectively.Which approach did Carey use to identify his business idea?

Which trend is "cloud" computing related to?

The primary basis for start-up ideas is personal experience gained solely in one's household.

Which idea for a new start-up comes from an accidental discovery?

Rohan believes his company's line of mp3 players will sell equally well to middle-aged males and females,adults in their 20s and 30s,and teenagers as long as the promotions are targeted properly to each group.What type of strategy is Rohan following?

In marketing terms,a focus strategy depends on market segmentation.

By selecting a particular market niche,an entrepreneur decides on the basic direction of the firm-a choice that affects the very nature of the business.What kind of decision is this?