Question 1

In the decline stage, which of the following strategies involves a reduction of investments in product support?

Accepted Answer

A)  exit strategy 
B)  harvest strategy 
C)  maintain strategy 
D)  consolidate strategy 
A)  exit strategy 
B)  harvest strategy 
C)  maintain strategy 
D)  consolidate strategy

Question 2

Which of the conditions prevail when an industry is at the end of its life cycle?

Accepted Answer

A)  The level of process innovation reaches its maximum as firms attempt to lower cost. 
B)  The industry structure is perfectly competitive with a large number of buyers and sellers. 
C)  The strategic objectives of businesses will involve gaining market acceptance. 
D)  The market reaches its maximum size at this stage. 
A)  The level of process innovation reaches its maximum as firms attempt to lower cost. 
B)  The industry structure is perfectly competitive with a large number of buyers and sellers. 
C)  The strategic objectives of businesses will involve gaining market acceptance. 
D)  The market reaches its maximum size at this stage.

Question 3

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

Accepted Answer

In the introductory stage, the level of

Question 4

Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)

Accepted Answer

A)  regressive innovation. 
B)  radical innovation. 
C)  architectural innovation. 
D)  disruptive innovation. 
A)  regressive innovation. 
B)  radical innovation. 
C)  architectural innovation. 
D)  disruptive innovation.

Question 5

Lillypad Toys is a manufacturer of educational toys for children. Six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. Three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. What should Lillypad's managers prepare for next?

Accepted Answer

A)  increased competition from imitators 
B)  a prolonged period of uncontested success 
C)  a sharp decline in demand for the product 
D)  a difficult struggle to move from invention to innovation 
A)  increased competition from imitators 
B)  a prolonged period of uncontested success 
C)  a sharp decline in demand for the product 
D)  a difficult struggle to move from invention to innovation

Question 6

As a start-up company, DigiWrist entered the low end of the highly competitive smartwatch industry with its low-cost smartwatches. Initially, the company was able to sell its inferior technology due to its low prices. Over the years, however, its rate of technology improvements increased above the industry standards. This helped the company to create a strong strategic position for its smartwatches in the high-end segment and claim a premium price. Which of the following types of innovation does this scenario best illustrate?

Accepted Answer

A)  radical innovation 
B)  incremental innovation 
C)  architectural innovation 
D)  disruptive innovation 
A)  radical innovation 
B)  incremental innovation 
C)  architectural innovation 
D)  disruptive innovation

Question 7

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. 
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.

Question 8

Which of the following is a feature of the maturity stage of the industry life cycle?

Accepted Answer

A)  The competitive intensity within the industry is at its peak. 
B)  The market reaches its maximum size. 
C)  The industry structure is more monopolistically competitive. 
D)  The focus on product innovation is higher than that on process innovation. 
A)  The competitive intensity within the industry is at its peak. 
B)  The market reaches its maximum size. 
C)  The industry structure is more monopolistically competitive. 
D)  The focus on product innovation is higher than that on process innovation.

Question 9

Incumbent firms favor incremental innovation over radical innovation because

Accepted Answer

A)  their business decisions are independent of the other parties in their innovation ecosystem. 
B)  radical innovation will disturb the existing power distribution within the firms. 
C)  incumbent firms do not have formal organizational structures and processes like the way new entrants do. 
D)  incremental innovations help firms sustain a permanent competitive advantage, whereas radical innovations only help gain a temporary advantage. 
A)  their business decisions are independent of the other parties in their innovation ecosystem. 
B)  radical innovation will disturb the existing power distribution within the firms. 
C)  incumbent firms do not have formal organizational structures and processes like the way new entrants do. 
D)  incremental innovations help firms sustain a permanent competitive advantage, whereas radical innovations only help gain a temporary advantage.

Question 10

Briefly discuss the steps in the innovation process.

Accepted Answer

Innovation describes the discovery and d

Question 11

Which of the following businesses is most susceptible to negative network effects?

Accepted Answer

A)  Moonglow Shoes produces a line of lightweight running shoes that are endorsed by an Olympic gold medalist. 
B)  Clover Technologies produces computer processing chips and sells them to a variety of manufacturers for use in smartphones and other devices. 
C)  Green Tools manufactures solar powered gardening implements and sells them online. 
D)  Pics Match is a social media platform where users upload photos to the site and are matched with other users who have taken similar photos. 
A)  Moonglow Shoes produces a line of lightweight running shoes that are endorsed by an Olympic gold medalist. 
B)  Clover Technologies produces computer processing chips and sells them to a variety of manufacturers for use in smartphones and other devices. 
C)  Green Tools manufactures solar powered gardening implements and sells them online. 
D)  Pics Match is a social media platform where users upload photos to the site and are matched with other users who have taken similar photos.

Question 12

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Accepted Answer

A)  The barriers to entry increase during this stage. 
B)  The firms in the industry yield the highest profits during this phase. 
C)  Rivalry among competitors decreases in this stage. 
D)  The weaker firms are forced out of the industry in this stage. 
A)  The barriers to entry increase during this stage. 
B)  The firms in the industry yield the highest profits during this phase. 
C)  Rivalry among competitors decreases in this stage. 
D)  The weaker firms are forced out of the industry in this stage.

Question 13

Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?

Accepted Answer

A)  Netflix moved from content development to upgrading its data analytics to provide faster online streaming. 
B)  Netflix applied big data analytics to its user preferences to provide highly personalized viewing recommendations. 
C)  Netflix moved from online streaming to online DVD rentals via the Internet. 
D)  Netflix applied first mover advantages to lock up talent needed to produce original content for DVD rentals and online streaming. 
A)  Netflix moved from content development to upgrading its data analytics to provide faster online streaming. 
B)  Netflix applied big data analytics to its user preferences to provide highly personalized viewing recommendations. 
C)  Netflix moved from online streaming to online DVD rentals via the Internet. 
D)  Netflix applied first mover advantages to lock up talent needed to produce original content for DVD rentals and online streaming.

Question 14

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 stage 
A)  maturity stage 
B)  growth stage 
C)  shakeout stage 
D)  introduction stage

Question 15

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

Accepted Answer

A)  entrepreneur. 
B)  category captain. 
C)  franchisor. 
D)  early adopter. 
A)  entrepreneur. 
B)  category captain. 
C)  franchisor. 
D)  early adopter.

Question 16

Social entrepreneurs forego the pursuit of profits to achieve social and environmental goals.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

Based on empirical observations, Geoffre

Question 18

Assume that the market for print book publishing has entered the maturity stage. Which of the following would most likely exist during this stage?

Accepted Answer

A)  a few start-up publishers 
B)  many small to midsized publishers 
C)  a few large publishers 
D)  one large publisher 
A)  a few start-up publishers 
B)  many small to midsized publishers 
C)  a few large publishers 
D)  one large publisher

Question 19

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 20

What happens during the shakeout stage of the industry life cycle?

Accepted Answer

As the industry moves into the shakeout

In the decline stage, which of the following strategies involves a reduction of investments in product support?

Which of the conditions prevail when an industry is at the end of its life cycle?

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

Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)

A factor favoring the success of disruptive innovation is that

Which of the following is a feature of the maturity stage of the industry life cycle?

Incumbent firms favor incremental innovation over radical innovation because

Briefly discuss the steps in the innovation process.

Which of the following businesses is most susceptible to negative network effects?

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?

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

Social entrepreneurs forego the pursuit of profits to achieve social and environmental goals.

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

Assume that the market for print book publishing has entered the maturity stage. Which of the following would most likely exist during this stage?

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

What happens during the shakeout stage of the industry life cycle?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters

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

In the decline stage, which of the following strategies involves a reduction of investments in product support?

Which of the conditions prevail when an industry is at the end of its life cycle?

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

Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)

A factor favoring the success of disruptive innovation is that

Which of the following is a feature of the maturity stage of the industry life cycle?

Incumbent firms favor incremental innovation over radical innovation because

Briefly discuss the steps in the innovation process.

Which of the following businesses is most susceptible to negative network effects?

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?

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

Social entrepreneurs forego the pursuit of profits to achieve social and environmental goals.

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

Assume that the market for print book publishing has entered the maturity stage. Which of the following would most likely exist during this stage?

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

What happens during the shakeout stage of the industry life cycle?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters