New-entry strategies typically fall into one of three categories: pioneering new-entry; imitative new-entry; or adaptive new entry. Outline the key strategic intentions of each and provide an example of each.
What will be an ideal response?
New entrants with a radical new product or highly innovative service may change the way business is conducted in an industry. This kind of breakthrough-creating new ways to solve old problems or meeting customers' needs in a unique new way-is referred to as a pioneering new entry. If the product or service is unique enough, a pioneering new entrant may have little direct competition. The first personal computer was a pioneering product; there had never been anything quite like it, and it revolutionized computing.
Whereas pioneers are often inventors or tinkerers with new technology, imitators usually have a strong marketing orientation. They look for opportunities to capitalize on proven market successes. An imitative new entry strategy is used by entrepreneurs who see products or business concepts that have been successful in one market niche or physical locale and introduce the same basic product or service in another segment of the market.
Sometimes, the key to success with an imitative strategy is to fill a market space where the need had previously been filled inadequately. An example would be open a new franchise store in a location that is not currently served.
Most new entrants use a strategy somewhere between "pure" imitation and "pure" pioneering. That is, they offer a product or service that is somewhat new and sufficiently different to create new value for customers and capture market share. Such firms are adaptive in the sense that they are aware of marketplace conditions and conceive entry strategies to capitalize on current trends. Some would argue that "every new idea is merely a spin of an old idea." An entrepreneur does not have to be totally creative. Sometimes a slight twist to an old idea makes all the difference. An adaptive new entry approach does not involve "re-inventing the wheel," nor is it merely imitative either. It involves taking an existing idea and adapting it to a particular situation. Consider the example of Green Mountain Coffee Roasters (GMCR), a Vermont-based distributor of specialty coffees and the creator of the Keurig single-cup brewer. Although the coffee business is not new and is dominated by global powerhouses, such as Starbucks, Kraft, and Procter & Gamble, GMCR has found a niche and has become a tremendously successful enterprise, which recently acquired Timothy's World Coffee of Toronto as a vehicle to enter the Canadian market.
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The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to use its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that
a. are easiest to satisfy. b. provide minimal core value. c. are important to all generational cohorts. d. competitors have tried and failed to satisfy. e. match its core competencies.
To satisfy the “not-for-profit” requirement for exempt status, the entity may not be engaged in a trade or business.
Answer the following statement true (T) or false (F)
Cassie works for RedBug Telecommunications Inc. as a customer relationship executive. According to the company's grooming policy, male customer relationship executives can wear normal business attire to work, but female employees are required to wear uniforms, though both perform the same duties. Which of the following holds true in this scenario?
A. Cassie has a valid gender discrimination claim because Title VII of the Civil Rights Act of 1964 restricts employers from imposing grooming codes on their employees. B. Cassie has a valid gender discrimination claim under Title VII of the Civil Rights Act of 1964 because female employees are being treated differently from male employees regarding attire with no reasonable job-related justification. C. Cassie does not have a claim for gender discrimination under Title VII of the Civil Rights Act of 1964 as long as RedBug Telecommunications can show that both male and female customer relationship executives are paid equally. D. Cassie does not have a claim for gender discrimination under Title VII of the Civil Rights Act of 1964 because RedBug Telecommunications hires both male and female employees.
A company who seeks to distinguish itself from competitors through the quality of its products or services is following a _________strategy.
-Overall Low Cost Leadership -Differentiation -Focus -Diversification -Defender