Question 1

Which of the following statements is true about establishing technical standards?

Accepted Answer

A)  Companies in an industry cannot lobby the government to mandate an industry standard. 
B)  Technical standards are often set by cooperation among businesses, without government help. 
C)  Companies cannot adopt technical standards that are in the public domain. 
D)  Market demand is not taken into consideration when it comes to establishing technical standards. 
E)  The strategy and business model a company has developed for promoting its technological standard holds little importance when it comes to establishing standards. 
A)  Companies in an industry cannot lobby the government to mandate an industry standard. 
B)  Technical standards are often set by cooperation among businesses, without government help. 
C)  Companies cannot adopt technical standards that are in the public domain. 
D)  Market demand is not taken into consideration when it comes to establishing technical standards. 
E)  The strategy and business model a company has developed for promoting its technological standard holds little importance when it comes to establishing standards.

Question 2

One important advantage of being a first mover is that it guarantees success.

Accepted Answer

A) True 
 B)False

Question 3

The layout of the keys on a computer keyboard is an example of a technical standard.

Accepted Answer

A) True 
 B)False

Question 4

With reference to high-technology industries, which of the following statements is true about technical standards?

Accepted Answer

A)  They emerge because there are economic benefits associated with them. 
B)  They cause compatibility problems between products and their complements. 
C)  They can create a lot of confusion in the minds of consumers. 
D)  They often result in higher production costs. 
E)  They increase the risks associated with supplying complementary products. 
A)  They emerge because there are economic benefits associated with them. 
B)  They cause compatibility problems between products and their complements. 
C)  They can create a lot of confusion in the minds of consumers. 
D)  They often result in higher production costs. 
E)  They increase the risks associated with supplying complementary products.

Question 5

Technological disruption:

Accepted Answer

A)  is typically a temporary phase lasting a few months. 
B)  occurs when the manufacturing plants of a company fail. 
C)  mostly affects the new entrants. 
D)  compels firms to adopt new business models. 
E)  is a problem primarily in embryonic industries. 
A)  is typically a temporary phase lasting a few months. 
B)  occurs when the manufacturing plants of a company fail. 
C)  mostly affects the new entrants. 
D)  compels firms to adopt new business models. 
E)  is a problem primarily in embryonic industries.

Question 6

What is the desired outcome of a format war?

Accepted Answer

A)  To control the source of differentiation which also controls the value that such differentiation can create for the customer. 
B)  To win the greatest market share in the industry. 
C)  To have control over setting the price for goods and services. 
D)  To edge other companies out of the industry. 
E)  To gain copyright and patent license over a product. 
A)  To control the source of differentiation which also controls the value that such differentiation can create for the customer. 
B)  To win the greatest market share in the industry. 
C)  To have control over setting the price for goods and services. 
D)  To edge other companies out of the industry. 
E)  To gain copyright and patent license over a product.

Question 7

Venus Corp. a high-technology, gadget-making company has introduced a gaming console with attractive features. Even though the console is priced modestly and has better features than the existing ones, it has failed as many customers are apprehensive about buying it. To create demand, Venus Corp. should:

Accepted Answer

A)  price the console extremely high. 
B)  create its own set of technical standards. 
C)  ensure that there are adequate complementary products. 
D)  use minimalistic and subtle advertising and marketing strategies. 
E)  avoid licensing the format to other companies. 
A)  price the console extremely high. 
B)  create its own set of technical standards. 
C)  ensure that there are adequate complementary products. 
D)  use minimalistic and subtle advertising and marketing strategies. 
E)  avoid licensing the format to other companies.

Question 8

Which of the following is NOT true of high-technology industries?

Accepted Answer

A)  First movers have an advantage because their customers avoid switching costs. 
B)  First movers have higher pioneering costs than later entrants. 
C)  Later entrants can avoid the mistakes made by first movers. 
D)  First movers that create a revolutionary product are in a monopoly position. 
E)  First movers run the risk of building the wrong resources and capabilities. 
A)  First movers have an advantage because their customers avoid switching costs. 
B)  First movers have higher pioneering costs than later entrants. 
C)  Later entrants can avoid the mistakes made by first movers. 
D)  First movers that create a revolutionary product are in a monopoly position. 
E)  First movers run the risk of building the wrong resources and capabilities.

Question 9

Microsoft's near-monopoly of PC operating systems substantially reduces the risks facing the makers of complementary products and the costs of those products.

Accepted Answer

A) True 
 B)False

Question 10

There are no significant benefits to owning a technical standard in an industry.

Accepted Answer

A) True 
 B)False

Question 11

Antibody Solutions is a company that specializes in cell-bank storage and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

Accepted Answer

A) True 
 B)False

Question 12

In order to take advantage of being a first mover in an industry, a new entrant must decide on whether to try to do it alone, enter into a strategic alliance, or license its technology.

Accepted Answer

A) True 
 B)False

Question 13

The outcome of format wars to control the source and customer value of differentiation can ultimately affect the profitability and survival of a company.

Accepted Answer

A) True 
 B)False

Question 14

An advantage of being a first mover is that:

Accepted Answer

A)  the pioneering costs are minimal. 
B)  there are well-defined distribution channels. 
C)  there is no risk of building the wrong resources. 
D)  the focus is always on the mass market. 
E)  there is an opportunity to increase sales volume ahead of rivals. 
A)  the pioneering costs are minimal. 
B)  there are well-defined distribution channels. 
C)  there is no risk of building the wrong resources. 
D)  the focus is always on the mass market. 
E)  there is an opportunity to increase sales volume ahead of rivals.

Question 15

Computer software products have high marginal costs and low fixed costs.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following strategies should a company NOT adopt if it wants to win a format war?

Accepted Answer

A)  Developing killer applications 
B)  Developing complementary products 
C)  Joining forces with other companies to develop new technologies 
D)  Aggressively marketing to jump-start demand 
E)  Charging extremely high license fee for the technology 
A)  Developing killer applications 
B)  Developing complementary products 
C)  Joining forces with other companies to develop new technologies 
D)  Aggressively marketing to jump-start demand 
E)  Charging extremely high license fee for the technology

Question 17

Which of the following will NOT help an established company in addressing the potential challenge of a disruptive technology?

Accepted Answer

A)  Access to knowledge about how disruptive technologies can revolutionize markets 
B)  Investing in newly emerging technologies that may ultimately become disruptive technologies 
C)  Separating out the disruptive technology and creating an autonomous operating division solely for this new technology 
D)  Asking customers if they are interested in the new technology 
E)  Understanding that a disruptive technology will require a radically different value chain with a different cost structure 
A)  Access to knowledge about how disruptive technologies can revolutionize markets 
B)  Investing in newly emerging technologies that may ultimately become disruptive technologies 
C)  Separating out the disruptive technology and creating an autonomous operating division solely for this new technology 
D)  Asking customers if they are interested in the new technology 
E)  Understanding that a disruptive technology will require a radically different value chain with a different cost structure

Question 18

Give an example of an industry that has recently undergone a technological paradigm shift. What impact did the shift have on established companies and on new entrants to the industry?

Accepted Answer

Many industries in retailing and manufac

Question 19

Mathematica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer. It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix. Mathematica 1.0 can be described as which of the following applications?

Accepted Answer

A)  Dominant 
B)  Analogous 
C)  Hardware 
D)  Strategic 
E)  Killer 
A)  Dominant 
B)  Analogous 
C)  Hardware 
D)  Strategic 
E)  Killer

Question 20

When two or more companies compete with each other to get their technology adopted as a standard in an industry, and when network effects and positive feedback loops are important, the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

Accepted Answer

A) True 
 B)False

Which of the following statements is true about establishing technical standards?

One important advantage of being a first mover is that it guarantees success.

The layout of the keys on a computer keyboard is an example of a technical standard.

With reference to high-technology industries, which of the following statements is true about technical standards?

Technological disruption:

What is the desired outcome of a format war?

Which of the following is NOT true of high-technology industries?

Microsoft's near-monopoly of PC operating systems substantially reduces the risks facing the makers of complementary products and the costs of those products.

There are no significant benefits to owning a technical standard in an industry.

Antibody Solutions is a company that specializes in cell-bank storage and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

In order to take advantage of being a first mover in an industry, a new entrant must decide on whether to try to do it alone, enter into a strategic alliance, or license its technology.

The outcome of format wars to control the source and customer value of differentiation can ultimately affect the profitability and survival of a company.

An advantage of being a first mover is that:

Computer software products have high marginal costs and low fixed costs.

Which of the following strategies should a company NOT adopt if it wants to win a format war?

Which of the following will NOT help an established company in addressing the potential challenge of a disruptive technology?

Give an example of an industry that has recently undergone a technological paradigm shift. What impact did the shift have on established companies and on new entrants to the industry?

Mathematica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer. It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix. Mathematica 1.0 can be described as which of the following applications?

When two or more companies compete with each other to get their technology adopted as a standard in an industry, and when network effects and positive feedback loops are important, the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

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Exam 7: Strategy and Technology

Which of the following statements is true about establishing technical standards?

One important advantage of being a first mover is that it guarantees success.

The layout of the keys on a computer keyboard is an example of a technical standard.

With reference to high-technology industries, which of the following statements is true about technical standards?

Technological disruption:

What is the desired outcome of a format war?

Which of the following is NOT true of high-technology industries?

Microsoft's near-monopoly of PC operating systems substantially reduces the risks facing the makers of complementary products and the costs of those products.

There are no significant benefits to owning a technical standard in an industry.

Antibody Solutions is a company that specializes in cell-bank storage and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

In order to take advantage of being a first mover in an industry, a new entrant must decide on whether to try to do it alone, enter into a strategic alliance, or license its technology.

The outcome of format wars to control the source and customer value of differentiation can ultimately affect the profitability and survival of a company.

An advantage of being a first mover is that:

Computer software products have high marginal costs and low fixed costs.

Which of the following strategies should a company NOT adopt if it wants to win a format war?

Which of the following will NOT help an established company in addressing the potential challenge of a disruptive technology?

Give an example of an industry that has recently undergone a technological paradigm shift. What impact did the shift have on established companies and on new entrants to the industry?

Mathematica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer. It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix. Mathematica 1.0 can be described as which of the following applications?

When two or more companies compete with each other to get their technology adopted as a standard in an industry, and when network effects and positive feedback loops are important, the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

Filters