Dollinger index

Entrepreneurial Strategies 149

DISCUSSION QUESTIONS

1. Why do new ventures need strategies?


2. How do the major entry wedges help create momentum for the new venture?


3. How do the minor wedges supplement the major ones?


4. Evaluate the pros and cons of the minor wedges. Which would be the most or least effec-
   tive in the long run?


5. Describe the five different kinds of rents. Give examples of how an entrepreneur might
   attempt to collect these.


6. How will firms employ their resources for growth? Explain the focus effects and synergy
   effects.


7. Discuss quality as a strategy. Can it be used to achieve sustainable competitive advantage?
   How?

KEY TERMS

Business-level strategy
Business model
Compatibility
Complementarities
Cooperation
Corporate-level strategy
Creative imitation
Customer contract
Customer uncertainty
Drivers
Efficiency
Enterprise-level strategy
Entrepreneurial rent
Entry wedges
First-mover advantage
Fragmented industries
Franchisee
Franchisor
Functional-level strategy
Geographic transfer
Horizontal integration
Industry life cycle
Information
Intellectual property
Isolating mechanisms
Joint venture
Licensing
Lock-in

Market relinquishment

Monopoly rent

Networking strategy

Novelty

Payments perspective

Positive feedback

Property rights

Quasi-rent

Relational rent

Resource uncertainty

Revenue model

Ricardian rent

Second source

Shakeout

Spin-off

Strategic uncertainty

Strategy

Strategy diamond

Strategy formulation

Strategy implementation

Structural uncertainty

Subfunctional level

Supply shortage

Switching costs

Technological leadership

Underutilized resource

Value pricing

Versioning