Question 1

Briefly discuss the strategic implications of the crossing-the-chasm framework.

Accepted Answer

Based on empirical observations, Geoffre...

Question 2

Compare closed and open innovation models.

Accepted Answer

In the closed innovation model, the firm...

Question 3

The compact disk (CD) industry is in the maturity phase of its industry life cycle.What conditions prevail for an industry in this stage?

Accepted Answer

A)   The type of buyers at this stage will be early adopters.
B)   The mode of competition at this stage will be based on non-price factors.
C)   The market growth is positive or high at this stage.
D)   The industry structure is an oligopoly with only a few large firms.E) B) and C)
F) All of the above

Question 4

Which of the following statements is NOT true about innovation?

Accepted Answer

A)   Innovation as a competitive weapon can simultaneously create and destroy value.
B)   Successful innovation allows a firm to extract temporary monopoly profits.
C)   Innovation has to be high-tech in order to be a potent competitive weapon.
D)   Process innovations are made possible through advances such as the Internet.E) All of the above
F) B) and D)

Question 5

Which of the following is a feature of the shakeout phase of the industry life cycle?

Accepted Answer

A)   There is rapid industry growth during this stage.
B)   Market demand in this stage primarily consists of first-time adopters.
C)   Competitive intensity within the industry increases.
D)   The mode of competition shifts from price to non-price in this stage.E) A) and C)
F) A) and D)

Question 6

The key objective for firms during the growth phase is to:

Accepted Answer

A)   invest as many resources as possible in product innovations.
B)   stake out a strong strategic position not easily imitated by rivals.
C)   pursue a harvest strategy.
D)   reduce their network effects.E) A) and B)
F) None of the above

Question 7

When Japanese carmakers attacked the existing U.S.automobile market by first offering small fuel-efficient cars, and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in _____.

Accepted Answer

A)   regressive innovation
B)   radical innovation
C)   disruptive innovation
D)   architectural innovationE) B) and C)
F) B) and D)

Question 8

Define entrepreneurship.Who are entrepreneurs?

Accepted Answer

Entrepreneurship describes the process b...

Question 9

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in _____.

Accepted Answer

A)   incremental innovations
B)   radical innovations
C)   architectural innovations
D)   disruptive innovationsE) None of the above
F) B) and C)

Question 10

FindFriend is an instant messaging application for smartphones.New smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications.Hence, it has the largest user base in the industry.Thus, FindFriend app's value has increased primarily due to its _____.

Accepted Answer

A)   learning curve effects
B)   economies of scale
C)   economies of scope
D)   network effectsE) A) and C)
F) A) and B)

Question 11

By introducing Vscan, a small, wireless ultrasound device, GE Healthcare (General Electric) was primarily trying to:

Accepted Answer

A)   cater to the healthcare needs of the developed countries over developing countries.
B)   invade the healthcare market from the bottom up.
C)   leverage existing technologies to attack new markets.
D)   find a market for high-end, high-price diagnostic devices.E) None of the above
F) B) and D)

Question 12

While the industry for 3D televisions is in the introduction stage of the industry life cycle, the CRT (Cathode ray tube) television industry is in its decline stage.Which of the following statements will be true in this scenario?

Accepted Answer

A)   The market size for 3D televisions is extremely large, while the market size for CRT televisions is moderate.
B)   While product innovation will be at its maximum for the 3D television industry, process innovation will be more crucial for the CRT television industry.
C)   The focus in the 3D television industry will be on cost-leadership, whereas in the CRT television industry, the focus will be on differentiation.
D)   While the strategic objective of the CRT television industry will be achieving market acceptance, the strategic objective of the 3D television industry will be pursuing a harvest strategy.E) C) and D)
F) A) and B)

Question 13

Which of the following is a drawback of Wikipedia's business model?

Accepted Answer

A)   The company's superior differentiated appeal is highly correlated to its cost.
B)   The user-generated content may be unreliable and unauthoritative.
C)   The company relies on the wisdom of the experts rather than the public.
D)   The chances of falling in the competitive chasm, between the early adopters and early majority, are high.E) A) and B)
F) B) and C)

Question 14

Which of the following best illustrates a process innovation as opposed to product innovation?

Accepted Answer

A)   A consumer electronics company developing a new generation of tablet computers
B)   An automobile company using computer-aided design in its production
C)   A consumer electronics company launching 3D televisions
D)   An automobile company commercializing electric carsE) C) and D)
F) B) and C)

Question 15

While the personal computer industry is flooded and growing with laptops and tablets, John recently bought a desktop, his first personal computer.He realized that a computer at home would be helpful for his children for their school projects, and he could use it to maintain the simple accounts of his plumbing business.Which of the following customer segments does John best represent?

Accepted Answer

A)   Early adopters
B)   Category captains
C)   Laggards
D)   Early majorityE) None of the above
F) All of the above

Question 16

To be successful and to survive the shakeout stage of the industry life cycle, a firm should:

Accepted Answer

A)   charge higher prices than its competitors.
B)   focus on product innovation rather than process innovation.
C)   gain economies of scale.
D)   shift from price to non-price competition.E) A) and D)
F) A) and B)

Question 17

As a research scholar, Richard had built a helicam as part of his project.The helicam could capture aerial images.Realizing the potential use of this product in movie production and military and rescue operations, he started a new venture where he could customize these helicams to fit the specific needs of the buyers and sell them.Richard can be best described as a(n) _____.

Accepted Answer

A)   entrepreneur
B)   category captain
C)   franchisor
D)   early adopterE) A) and B)
F) All of the above

Question 18

In developed economies, the electric car industry is in the introduction stage, and the industry for MP3 players is in the shakeout phase.What does this imply?

Accepted Answer

A)   The mode of competition in the electric car industry will be based on price, whereas in the MP3 player industry, the mode of competition will be non-price based.
B)   The industry for electric cars will focus more on product innovation, whereas in the MP3 player industry, the focus will be on process innovation.
C)   The electric car industry will move to the maturity stage, whereas the industry for MP3 players will enter the growth stage next.
D)   The industry for electric cars will primarily pursue an integration strategy, whereas in the MP3 players industry, the focus will be on differentiation.E) A) and D)
F) None of the above

Question 19

The demand for video recorders has drastically reduced, and there are only a few consumer electronics companies selling them at extremely low prices.Also, the current buyers of video recorders are mainly categorized under laggards.Which of the following stages of the industry life cycle is the video recorder industry in currently?

Accepted Answer

A)   Growth stage
B)   Maturity stage
C)   Decline stage
D)   Commercialization stageE) A) and B)
F) All of the above

Question 20

Which of the following has been a primary reason for increases in the Apple iPhone's installed base?

Accepted Answer

A)   The decision to enter into the smartphone market during the maturity stage
B)   The cost-leadership strategy pursued by Apple
C)   The availability of apps that led to network effects
D)   The decision to target laggards, the most profitable customer segmentE) None of the above
F) A) and B)

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

The compact disk (CD) industry is in the maturity phase of its industry life cycle.What conditions prevail for an industry in this stage?

Correct Answer
verified

Briefly discuss the strategic implications of the crossing-the-chasm framework.

Correct Answer
verified
Based on empirical observations, Geoffre...
View Answer

Correct Answer
verified

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in _____.

Correct Answer
verified

Which of the following has been a primary reason for increases in the Apple iPhone's installed base?

Correct Answer
verified

Which of the following best illustrates a process innovation as opposed to product innovation?

Correct Answer
verified

When Japanese carmakers attacked the existing U.S.automobile market by first offering small fuel-efficient cars, and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in _____.

Correct Answer
verified

Compare closed and open innovation models.

Correct Answer
verified
In the closed innovation model, the firm...
View Answer

Correct Answer
verified

While the industry for 3D televisions is in the introduction stage of the industry life cycle, the CRT (Cathode ray tube) television industry is in its decline stage.Which of the following statements will be true in this scenario?

Correct Answer
verified

To be successful and to survive the shakeout stage of the industry life cycle, a firm should:

Correct Answer
verified

Which of the following is a feature of the shakeout phase of the industry life cycle?

Correct Answer
verified

In developed economies, the electric car industry is in the introduction stage, and the industry for MP3 players is in the shakeout phase.What does this imply?

Correct Answer
verified

By introducing Vscan, a small, wireless ultrasound device, GE Healthcare (General Electric) was primarily trying to:

Correct Answer
verified

Correct Answer
verified

Which of the following statements is NOT true about innovation?

Correct Answer
verified

Define entrepreneurship.Who are entrepreneurs?

Correct Answer
verified
Entrepreneurship describes the process b...
View Answer

The key objective for firms during the growth phase is to:

Correct Answer
verified

Which of the following is a drawback of Wikipedia's business model?

Correct Answer
verified

Correct Answer
verified

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

The compact disk (CD) industry is in the maturity phase of its industry life cycle.What conditions prevail for an industry in this stage?

Correct AnswerverifiedShow Answer

Briefly discuss the strategic implications of the crossing-the-chasm framework.

Correct AnswerverifiedBased on empirical observations, Geoffre...View AnswerShow Answer

Correct AnswerverifiedShow Answer

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in _____.

Correct AnswerverifiedShow Answer

Which of the following has been a primary reason for increases in the Apple iPhone's installed base?

Correct AnswerverifiedShow Answer

Which of the following best illustrates a process innovation as opposed to product innovation?

Correct AnswerverifiedShow Answer

When Japanese carmakers attacked the existing U.S.automobile market by first offering small fuel-efficient cars, and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in _____.

Correct AnswerverifiedShow Answer

Compare closed and open innovation models.

Correct AnswerverifiedIn the closed innovation model, the firm...View AnswerShow Answer

Correct AnswerverifiedShow Answer

While the industry for 3D televisions is in the introduction stage of the industry life cycle, the CRT (Cathode ray tube) television industry is in its decline stage.Which of the following statements will be true in this scenario?

Correct AnswerverifiedShow Answer

To be successful and to survive the shakeout stage of the industry life cycle, a firm should:

Correct AnswerverifiedShow Answer

Which of the following is a feature of the shakeout phase of the industry life cycle?

Correct AnswerverifiedShow Answer

In developed economies, the electric car industry is in the introduction stage, and the industry for MP3 players is in the shakeout phase.What does this imply?

Correct AnswerverifiedShow Answer

By introducing Vscan, a small, wireless ultrasound device, GE Healthcare (General Electric) was primarily trying to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is NOT true about innovation?

Correct AnswerverifiedShow Answer

Define entrepreneurship.Who are entrepreneurs?

Correct AnswerverifiedEntrepreneurship describes the process b...View AnswerShow Answer

The key objective for firms during the growth phase is to:

Correct AnswerverifiedShow Answer

Which of the following is a drawback of Wikipedia's business model?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Based on empirical observations, Geoffre...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In the closed innovation model, the firm...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Entrepreneurship describes the process b...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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