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

Describe network effects and their potential to help or hurt a platform business.

Discuss the differences between pipeline businesses and platform businesses in terms of the value chain.

Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. The company has grown by over 150 percent in the past year. Dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic do to exemplify the social entrepreneurship model?

While the personal computer industry is flooded and growing with laptops and tablets, Malik 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 Ivan best represent?

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

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

The key objective for firms during the growth phase is to

Innovation that targets new markets with existing technologies is known as disruptive innovation.

In the context of industrial growth, which of the following statements is true of standards?

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms?

When Japanese carmakers entered 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

Which of the following lists the stages of the industry life cycle in the correct order?

A. G. Lafley at Procter & Gamble (P&G) had implemented an open-innovation model, which had greatly benefitted the company. In the light of this information, we can conclude that A. G. Lafley is a(n)

Explain the reasons for increasingly rapid technological diffusion and adoption.

Pipeline businesses are typically better than platform businesses at incorporating user feedback and taking advantage of network effects.

What are the competitive benefits that first movers in an industry experience?

When ReGen Pharmaceuticals released a new drug to treat insomnia, its chemical composition was disclosed at the back of the drug's cover. However, any attempts by competitors to copy the chemical composition would result in infringement of ReGen Pharmaceuticals intellectual property rights. Thus, the drug is protected by a

Sunshine Technologies introduced a tablet that could run completely on solar energy and was less expensive than competitors' tablets. On the downside, it required more frequent charging than the competition's tablets. However, the technology of the Sunshine tablet improved rapidly, thereby improving its recharge frequency. This example describes

The pace of innovation has slowed in the 21st century.

According to the crossing-the-chasm framework, the biggest chasm between customer segments is between early adopters and the mass market made up of the early majority and the late majority.