Generating and Exploiting New Entries

For it to be competitive, the resource bundle created by combining knowledge and other resources must have all of the following qualities, except

• Rare

• Valuable

• Inimitable

• Indestructible

This pertains to the set of decisions, actions, and reactions that first generate, and then exploit over time, a new entry.

• Entrepreneurship

• Risk Reduction Strategies

• Entrepreneurial Strategy

• Opportunity Recognition

This is the entrepreneur's possession of information, technology, know-how, and skills that provide insight into ways to create new knowledge.

• Key Success Factors

• Technological Knowledge

• Technological Uncertainty

• Market Knowledge

The error of commission occurs when an attractive opportunity is lost because the entrepreneur decides not to act on it.

• True

• False

Underestimating demand may result to customer dissatisfaction and eventually losing them.

• True

• False

This is the grace period in which the first mover operates in the industry under conditions of limited competition.

• Window of opportunity

• Adaptation

• Lead Time

• Uncertainty

Environmental instability is highly likely to occur in emerging markets because of the lack of established rules or systems.

• True

• False

This is an imitation strategy that reduces the risk of downside loss by allowing the franchisee to use the franchisor's "proven formula".

• Broad-scope Strategy

• "Me too"

  Strategy

• Lead Time

• Franchising

One of the ways to gain an advantage as a first-mover is to protect your product's uniqueness by securing intellectual property rights.

• True

• False

The same negative implications that are naturally brought about by an enterprise being new may be converted into positive ones.

• True

• False