Which of the following statements is true about new entrants in the context of a technological paradigm shift?
A) New entrants often face the risks of product cannibalization.
B) Pressures to continue the existing out-of-date business model hamstring new entrants.
C) New entrants do not need to worry about their established customer base.
D) It is difficult for new entrants to focus all their energies on the opportunities offered by the new disruptive technology.
E) New entrants are not constrained by lack of capital.

Question

Quizplus · Accepted Answer

New entrants, unlike established companies, do not have an existing customer base to worry about losing or alienating when adopting new technologies or business models. This allows them to fully leverage the opportunities presented by technological paradigm shifts without the concern of product cannibalization or the need to maintain outdated business models.

Which of the Following Statements Is True About New Entrants