1.

An entry wedge, according to the text, is a type of entrepreneurial strategy

firms can use to enter into business.

True False

2. Founders using a pioneering new entry strategy look for opportunities to

capitalize on proven market successes.

True False

3. Adaptive new entry involves offering a radical new product or highly innovative
service.

True False

4. Choosing which new entry strategy is best depends on competitive financial

and marketplace considerations. The greatest opportunities most likely will be in
existing markets, rather than in new markets.

True False

5. Rocket Internet, founded in 2007, funds start-ups. One of its successful

investments was in Lamoda, a retailing fashion site in Russia that is modeled
after Zappos. This is an example of a pioneering new entry strategy.

True False

6. Smell-O-Vision created an invention that would pump odors into movie

theatres. It did not make it to market. This was an attempt to be an adaptive entry
strategy.

True False

7. Developed in 1993, World Wide Web, later named Nexus, was the first web
browser. It radically changed how users access information on the Internet. This
is an example of a pioneering new entry strategy.

True False

8. The success of an adaptive new entrant can be limited, if the value proposition
is perceived as being unique.

True False
9. Once an adaptive entrant has achieved initial success, the company is safe
from copycat competition.

True False

10. Under Armour Inc., founded in 1995, makes undershirts and other athletic
gear using moisture-wicking fabric. This is an example of a pioneering new entry.

True False

11. Square, founded in 2010, provides a means for small businesses to process
credit and debit card sales without signing up for a traditional credit card
arrangement. This is an example of a pioneering new entry.

True False

12. One of the most important considerations for a new entrant is the type of
strategic positioning to choose that will help the business move forward.

True False

13. Because new ventures typically are small, they usually do not have high
economies of scale relative to competitors.

True False

14. Entrepreneurial firms are often in a strong position to use combination

strategies, because they have the flexibility to approach situations uniquely.

True False

15. Entrepreneurial competitive dynamics refers to a cycle of actions and

responses between firms competing for the same customers.

True False