Question

When an entrepreneur is considering an opportunity and realizes that there exists a combination of low barriers to entry, few opportunities for differentiation, and a lack of sustainable advantage, this is an example of

Select one:

a. Hubris trap

b. Better mousetrap fallacy

c. No sustainable business model fallacy

d. Me-too trap

Answer 1

Option D.

• The above example belongs to the Me-too-trap.
• When an entrepreneur or a new entrant faces low barriers to entry, lack of sustainable advantage and low barriers to entry then he is in a Me-too-trap.
• These combinations of high threat of entry shows that they took a decision in a hurry as it does not give them any sustainable advantage.
• To overcome this trap the enterprenuers can either stop if they have not started or sell their idea if it is not too late.