Question 1

Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?

Accepted Answer

A)   While the customer segment in the introduction stage consists of early adopters, the customers entering the market in the growth stage are technology enthusiasts.
B)   Unlike technology enthusiasts, early adopters' demand is fueled more by intuition and vision rather than technology concerns.
C)   While early adopters make up the smallest market segment, technology enthusiasts make up the mass market.
D)   Firms need to communicate products' potential applications in a more direct way when attracting technology enthusiasts rather than early adopters.E) A) and B)
F) All of the above

Question 2

When a firm pursues a maintain strategy, it:

Accepted Answer

A)   exits a declining industry to maintain the goodwill of its overall brand name.
B)   reduces investments in product support and allocates only a minimum of human and other resources.
C)   continues to support marketing efforts even if the demand for the product is declining.
D)   chooses to consolidate the industry by buying rival firms, those who plan to exit.E) A) and C)
F) A) and B)

Question 3

It is important for a firm to win over the early majority section of the market to ensure the commercial success of an innovation because they:

Accepted Answer

A)   are driven by technology concerns rather than the practicality of a new product.
B)   influence the purchase decisions of early adopters.
C)   enter into the market in large numbers, creating a herding effect.
D)   have the highest purchasing power when compared to the other customer segments.E) A) and D)
F) A) and C)

Question 4

In which of the following stages of the industry life cycle is a standard first established?

Accepted Answer

A)   Maturity stage
B)   Growth stage
C)   Shakeout stage
D)   Introduction stageE) B) and D)
F) B) and C)

Question 5

Briefly discuss the four strategic options firms have during the decline stage of the industry life cycle.

Accepted Answer

At the decline stage, managers generally...

Question 6

Which of the following statements is true of the early majority section of consumers?

Accepted Answer

A)   They come into the market during the introduction stage.
B)   They are unaware that many hyped new product introductions will fade away.
C)   They weigh the benefits and costs carefully when adopting a new product.
D)   They make up the smallest market segment.E) A) and C)
F) C) and D)

Question 7

Why do firms have more strategic variety in the growth stage of the industry life cycle?

Accepted Answer

Competitive rivalry is muted in the grow...

Question 8

A factor favoring the success of disruptive innovation is that:

Accepted Answer

A)   incumbent firms are slow to change.
B)   new entrants have highly formal organizational structures and processes.
C)   the low end of the market is highly guarded.
D)   incumbent firms focus on radical innovation rather than incremental innovation.E) A) and D)
F) C) and D)

Question 9

What the factors led to a shift in the knowledge landscape from closed innovation to open innovation?

Accepted Answer

Several factors led to a shift in the kn...

Question 10

A firm's resistance to changes in the status quo is referred to as _____.

Accepted Answer

A)   organizational parity
B)   organizational liquidity
C)   organizational inertia
D)   organizational efficacyE) C) and D)
F) B) and D)

Question 11

The _____ business model is best described as one in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choices.

Accepted Answer

A)   razor-razor-blade
B)   freemium
C)   pay-as-you-go
D)   long tailE) A) and C)
F) B) and C)

Question 12

_____ is best described as the commercialization of any new product, process, or the modification and recombination of existing ones.

Accepted Answer

A)   Direct imitation
B)   Mass customization
C)   Innovation
D)   HeadhuntingE) A) and C)
F) B) and D)

Question 13

In the introductory stage, the level of product innovation is at a maximum.Elaborate.

Accepted Answer

In the introductory stage, the level of ...

Question 14

While the domestic airline industry is in the maturity stage of the industry life cycle, the pet clothing industry is in its growth stage.Which of the following can be inferred from the given data?

Accepted Answer

A)   Competitive intensity will be higher in the domestic airline industry than the pet clothing industry.
B)   The pet clothing industry is ahead of the domestic airline industry in the industry life cycle.
C)   While the domestic airline industry is free from excess capacity, the pet clothing industry will have new entrants.
D)   The mode of competition will be price-based in the pet clothing industry and will be non-price based in the domestic airline industry.E) A) and B)
F) A) and C)

Question 15

In a radical innovation, a firm targets:

Accepted Answer

A)   existing markets by using new technologies.
B)   new markets by using existing technologies.
C)   new markets by using new technologies.
D)   existing markets by using existing technologies.E) All of the above
F) B) and C)

Question 16

What are the additional characteristics that a new product or technology must have to be a disruptive force?

Accepted Answer

The dynamic process of disruptive innovation begins when a firm, frequently a startup, introduces a new product based on a new technology to meet existing customer needs.To be a disruptive force, however, this new product or technology has to have additional characteristics:
1.It begins as a low-cost solution to an existing problem.
2.Initially, its performance is inferior to the existing technology, but its rate of technological improvement over time is faster than the rate of performance increases required by different market segments.

Question 17

How has the long tail business model affected eBay as an online retailer?

Accepted Answer

A)   It has increased the cost of the virtual shelf space.
B)   It has allowed eBay to offer limited product selections to its customers.
C)   It has helped overcome the problem of thin markets, at no cost to the buyer.
D)   It has made eBay highly dependent on products found in the short head to generate revenues.E) A) and B)
F) A) and C)

Question 18

Intel's Celeron chip and Atom chip are initiatives to:

Accepted Answer

A)   introduce a new product in a new market to extend its leadership.
B)   guard the company against disruptive innovation by protecting the low end of the market.
C)   stall its own disruption strategies and wait for its rivals to introduce disruptive forces.
D)   target that section of the market that is not particularly price sensitive.E) B) and C)
F) A) and D) B

Question 19

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage.In the context of this scenario, which of the following statements is true?

Accepted Answer

A)   The industry for cell phones with holographic keyboards will face greater competition than the tablet industry.
B)   While the industry for cell phones with holographic keyboards will focus on product innovation, the tablet industry will focus on process innovation.
C)   While the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits.
D)   The industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.E) None of the above
F) A) and B) B

Question 20

In the context of the long tail phenomenon, what does the short head represent?

Accepted Answer

A)   It represents products that appeal to the largest segment of the market with homogenous tastes.
B)   It represents products that are manufactured from minimal input resources.
C)   It represents products that contribute only 20 percent to a firm's total revenue.
D)   It represents products that online retailers offer in order to increase their product portfolio and not their revenues.E) B) and C)
F) B) and D)

Exam 7: Business Strategy: Innovation, Entrepreneurship, and Platforms

Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?

Correct Answer
verified

When a firm pursues a maintain strategy, it:

Correct Answer
verified

It is important for a firm to win over the early majority section of the market to ensure the commercial success of an innovation because they:

Correct Answer
verified

In which of the following stages of the industry life cycle is a standard first established?

Correct Answer
verified

Briefly discuss the four strategic options firms have during the decline stage of the industry life cycle.

Correct Answer
verified
At the decline stage, managers generally...
View Answer

Which of the following statements is true of the early majority section of consumers?

Correct Answer
verified

Why do firms have more strategic variety in the growth stage of the industry life cycle?

Correct Answer
verified
Competitive rivalry is muted in the grow...
View Answer

A factor favoring the success of disruptive innovation is that:

Correct Answer
verified

What the factors led to a shift in the knowledge landscape from closed innovation to open innovation?

Correct Answer
verified
Several factors led to a shift in the kn...
View Answer

A firm's resistance to changes in the status quo is referred to as _____.

Correct Answer
verified

The _____ business model is best described as one in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choices.

Correct Answer
verified

_____ is best described as the commercialization of any new product, process, or the modification and recombination of existing ones.

Correct Answer
verified

In the introductory stage, the level of product innovation is at a maximum.Elaborate.

Correct Answer
verified
In the introductory stage, the level of ...
View Answer

While the domestic airline industry is in the maturity stage of the industry life cycle, the pet clothing industry is in its growth stage.Which of the following can be inferred from the given data?

Correct Answer
verified

In a radical innovation, a firm targets:

Correct Answer
verified

What are the additional characteristics that a new product or technology must have to be a disruptive force?

How has the long tail business model affected eBay as an online retailer?

Correct Answer
verified

Intel's Celeron chip and Atom chip are initiatives to:

Correct Answer
verified
B

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage.In the context of this scenario, which of the following statements is true?

Correct Answer
verified
B

In the context of the long tail phenomenon, what does the short head represent?

Correct Answer
verified

Exam 7: Business Strategy: Innovation, Entrepreneurship, and Platforms

Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?

Correct AnswerverifiedShow Answer

When a firm pursues a maintain strategy, it:

Correct AnswerverifiedShow Answer

It is important for a firm to win over the early majority section of the market to ensure the commercial success of an innovation because they:

Correct AnswerverifiedShow Answer

In which of the following stages of the industry life cycle is a standard first established?

Correct AnswerverifiedShow Answer

Briefly discuss the four strategic options firms have during the decline stage of the industry life cycle.

Correct AnswerverifiedAt the decline stage, managers generally...View AnswerShow Answer

Which of the following statements is true of the early majority section of consumers?

Correct AnswerverifiedShow Answer

Why do firms have more strategic variety in the growth stage of the industry life cycle?

Correct AnswerverifiedCompetitive rivalry is muted in the grow...View AnswerShow Answer

A factor favoring the success of disruptive innovation is that:

Correct AnswerverifiedShow Answer

What the factors led to a shift in the knowledge landscape from closed innovation to open innovation?

Correct AnswerverifiedSeveral factors led to a shift in the kn...View AnswerShow Answer

A firm's resistance to changes in the status quo is referred to as _____.

Correct AnswerverifiedShow Answer

The _____ business model is best described as one in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choices.

Correct AnswerverifiedShow Answer

_____ is best described as the commercialization of any new product, process, or the modification and recombination of existing ones.

Correct AnswerverifiedShow Answer

In the introductory stage, the level of product innovation is at a maximum.Elaborate.

Correct AnswerverifiedIn the introductory stage, the level of ...View AnswerShow Answer

While the domestic airline industry is in the maturity stage of the industry life cycle, the pet clothing industry is in its growth stage.Which of the following can be inferred from the given data?

Correct AnswerverifiedShow Answer

In a radical innovation, a firm targets:

Correct AnswerverifiedShow Answer

What are the additional characteristics that a new product or technology must have to be a disruptive force?

How has the long tail business model affected eBay as an online retailer?

Correct AnswerverifiedShow Answer

Intel's Celeron chip and Atom chip are initiatives to:

Correct AnswerverifiedB

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage.In the context of this scenario, which of the following statements is true?

Correct AnswerverifiedB

In the context of the long tail phenomenon, what does the short head represent?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
At the decline stage, managers generally...
View Answer

Correct Answer
verified

Correct Answer
verified
Competitive rivalry is muted in the grow...
View Answer

Correct Answer
verified

Correct Answer
verified
Several factors led to a shift in the kn...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In the introductory stage, the level of ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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B

Correct Answer
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B

Correct Answer
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