Entrepreneurship Chapter 5

financial gains gathered from an asset or capability that are in excess of the ordinary returns in that particular industry

economic rents

benefit of gaining customer loyalty by being the first firm to the market

first mover advantage

firms that enter a market after first mover

followers

not physical but needed for success

intangible assets

subject each resource to the following 4 criteria

is it rare, easily substituted, durable, and valuable?

Porters 3 strategies

low cost, differentiation, focus

a measure to evaluate whether a person or firm is meeting stated goals

metric

brief statement that summarizes how and where a firm will compete

mission statement

feel of the firm

qualitative

measures financials and goals - numbers

quantitative

2 categories for goals

quantitative and qualitative

identifying a sustainable competitive advantage

1. develop list of assets and capabilities 2. break into two groups standard and extraordinary 3. evaluate resources and capabilities

the mission statement should

clearly specify the market to compete in and the ways in which it will compete

resources that allow a firm to do things better than its competitors

capabilities

the broad approach that a small business will use to accomplish its mission

strategy

an advantage that others can't immediately copy

sustainable competitive coverage

hard assets such as equipment and location

tangible assets