Question

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Answer 1

Options available are:

A) fragmented

B) emerging

C) declining

D) global

E) mature

Answer:

C) Declining

Explanation:

The reason is that these companies have greater knowledge of the industry than the other companies that are entering the market. Furthermore, the industry is also in decline phase which means that the market entrants are afraid of entering the market and that the old companies like JetBlue, Nucor and Cirque du Soleil have better brand recognition which helps them make sales.

Answer 2

Answer:

declining

Explanation:

Even though Nucor (80 years old), JetBlue (20 years old) and Cirque du Soleil (35 years old) are not "new" companies, compared to their competition they are infants. The Ringling Bros circus closed after 146 years, oldest airlines have been operating for more than 100 years (KLM), and steel companies for nearly 170.

These three companies are basically innovators in their industries and changed the way these traditional industries operated. Growth opportunities exist in even old and established industries, specially now when technology is the changing the way that we live.