In the Context of the Entrepreneurial Strategy Matrix, a Novel

question 51

Multiple Choice

In the context of the entrepreneurial strategy matrix, a novel product idea that involves a large financial investment would be described as

• A) high innovation/low risk.
• B) high innovation/high risk.
• C) low innovation/low risk.
• D) low innovation/high risk.
• E) low innovation/no risk.

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Definitions:

Cannibalization

The decline in the number of units sold, income, or market control of a product following the release of a new product by the same company.

MR

Marginal Revenue, the change in total revenue that results from selling one additional unit of a product or service.

MC

The additional cost of producing one more unit of a product or service, known as marginal cost.

Substitute Brands

Brands that offer products or services which consumers may use in place of each other based on preference, price, or availability.