The Primary Opportunity Existing for Startups in Fragmented Industries Is

question 61

Multiple Choice

The primary opportunity existing for startups in fragmented industries is to ________.

• A) pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation
• B) win customers by placing an emphasis on service and process innovation
• C) capture a first-mover advantage
• D) pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation
• E) consolidate the industry and establish industry leadership as a result of doing so

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Definitions:

Command-based Economy

An economy where production, investment, prices, and incomes are determined centrally by a government.

Gini Coefficient

A measure of the distribution of wealth within a country.

Reserve Requirement

The minimum amount of cash reserves a commercial bank must hold.

Capitalism

An economic system in which factors of trade and production are controlled by private owners rather than by the state.