Question 1

Which of the following is NOT a way that standards can emerge in an industry?

Accepted Answer

A)  Lobbying the government to mandate an industry standard when the benefits of establishing a standard are recognized 
B)  Emerging rules and regulations about resource use and worker safety 
C)  Government- or association-set standards fall into the public domain 
D)  Market demand 
E)  Industry association between cooperating businesses without government assistance 
A)  Lobbying the government to mandate an industry standard when the benefits of establishing a standard are recognized 
B)  Emerging rules and regulations about resource use and worker safety 
C)  Government- or association-set standards fall into the public domain 
D)  Market demand 
E)  Industry association between cooperating businesses without government assistance

Question 2

Which of the following statements is true about marginal costs in high-technology industries?

Accepted Answer

A)  They are invariably higher than fixed costs. 
B)  They are the costs that customers need to bear to adopt a new technology. 
C)  They include the costs of packaging and product distribution. 
D)  They are extremely high in software-making companies. 
E)  They do not exist if the product is sold by a sales force directly to end-users. 
A)  They are invariably higher than fixed costs. 
B)  They are the costs that customers need to bear to adopt a new technology. 
C)  They include the costs of packaging and product distribution. 
D)  They are extremely high in software-making companies. 
E)  They do not exist if the product is sold by a sales force directly to end-users.

Question 3

Aggressive marketing strategies such as substantial upfront marketing and point-of-sales promotion techniques:

Accepted Answer

A)  deters early adopters. 
B)  helps a company jump-start demand. 
C)  results in lower emphasis on killer applications. 
D)  attracts potential early adopters who will bear the switching costs associated with adopting the format.. 
E)  usually triggers a negative feedback loop. 
A)  deters early adopters. 
B)  helps a company jump-start demand. 
C)  results in lower emphasis on killer applications. 
D)  attracts potential early adopters who will bear the switching costs associated with adopting the format.. 
E)  usually triggers a negative feedback loop.

Question 4

Tony has been a loyal PlayStation user for the last few years and has invested over $500 in the console, controllers and about 20 games that can only be played on the PlayStation platform. A new game has just been launched for the Xbox One that Tony wants to buy, but he would have to purchase a new Xbox and controllers for $500 in order to play the game. Tony decides not to buy the new Xbox game due the costs. Tony's decision was based on high switching costs.

Accepted Answer

A) True 
 B)False

Question 5

Marginal cost refers to the costs of:

Accepted Answer

A)  switching to a new technology. 
B)  adhering to technical standards. 
C)  producing one extra unit of product. 
D)  product promotions. 
E)  licensing new technology. 
A)  switching to a new technology. 
B)  adhering to technical standards. 
C)  producing one extra unit of product. 
D)  product promotions. 
E)  licensing new technology.

Question 6

Which of the following is a disadvantage of first movers?

Accepted Answer

A)  They cannot establish significant brand loyalty due to high costs. 
B)  They cannot create switching costs for their customers, thus making it difficult to enter the market. 
C)  They decrease sales volume compared to their rivals, and thus operate at a loss. 
D)  They run the risk of building the wrong resources and capabilities. 
E)  They do not have the power to exploit network effects and positive feedback loops. 
A)  They cannot establish significant brand loyalty due to high costs. 
B)  They cannot create switching costs for their customers, thus making it difficult to enter the market. 
C)  They decrease sales volume compared to their rivals, and thus operate at a loss. 
D)  They run the risk of building the wrong resources and capabilities. 
E)  They do not have the power to exploit network effects and positive feedback loops.

Question 7

There is a set of fixed specifications for turbine blades for jet engines. The specifications include the material that needs to be used to manufacture the blades as well as the specific dimensions that they need to have; the same specifications are used by all manufacturers. In this scenario, the specifications for jet blades can be referred to as:

Accepted Answer

A)  format wars. 
B)  technical standards. 
C)  technological paradigm shifts. 
D)  first movers. 
E)  razor and blade strategies. 
A)  format wars. 
B)  technical standards. 
C)  technological paradigm shifts. 
D)  first movers. 
E)  razor and blade strategies.

Question 8

Which of the following statements is true about new entrants in the context of a technological paradigm shift?

Accepted Answer

A)  New entrants often face the risks of product cannibalization. 
B)  Pressures to continue the existing out-of-date business model hamstring new entrants. 
C)  New entrants do not need to worry about their established customer base. 
D)  It is difficult for new entrants to focus all their energies on the opportunities offered by the new disruptive technology. 
E)  New entrants are not constrained by lack of capital. 
A)  New entrants often face the risks of product cannibalization. 
B)  Pressures to continue the existing out-of-date business model hamstring new entrants. 
C)  New entrants do not need to worry about their established customer base. 
D)  It is difficult for new entrants to focus all their energies on the opportunities offered by the new disruptive technology. 
E)  New entrants are not constrained by lack of capital.

Question 9

Describe the advantages and disadvantages of being a first mover or a follower in a high-tech industry. In your opinion, which strategy is preferable, and why?

Accepted Answer

First movers have the following advantag

Question 10

The economic benefits of standard creation in an industry include compatibility, clarity to the consumer, reduction of production costs and lowered risks for companies supplying complementary products.

Accepted Answer

A) True 
 B)False

Question 11

Switching costs, in the context of technology industries, refer to the costs that:

Accepted Answer

A)  industries incur in order to adhere to technical standards. 
B)  companies incur to switch from one business model to another. 
C)  customers need to bear to abandon an established standard and adopt a new standard. 
D)  industries need to bear to abandon old technology and get license for a new technology. 
E)  companies need to bear to create product differentiation when they are locked inside an industry. 
A)  industries incur in order to adhere to technical standards. 
B)  companies incur to switch from one business model to another. 
C)  customers need to bear to abandon an established standard and adopt a new standard. 
D)  industries need to bear to abandon old technology and get license for a new technology. 
E)  companies need to bear to create product differentiation when they are locked inside an industry.

Question 12

With reference to technical standards, a dominant design refers to a:

Accepted Answer

A)  set of design standards that are extremely complicated to adhere to. 
B)  network of complementary products as a primary determinant of the demand for an industry's product. 
C)  common set of features or design characteristics. 
D)  product design that requires extremely high production costs. 
E)  product design that requires extensive advertising. 
A)  set of design standards that are extremely complicated to adhere to. 
B)  network of complementary products as a primary determinant of the demand for an industry's product. 
C)  common set of features or design characteristics. 
D)  product design that requires extremely high production costs. 
E)  product design that requires extensive advertising.

Question 13

Libra Electronics has invented a new technology to make laptops that are extremely lightweight and unbreakable. The company is advertising aggressively and wishes to create demand for its new range of laptops. To attract customers, the company has priced the laptops attractively. However, to earn a profit, the company has priced the batteries required for the laptops extremely high. Which of the following is illustrated in this scenario?

Accepted Answer

A)  Downsizing strategy 
B)  Harvest strategy 
C)  Razor and blade strategy 
D)  Divestment strategy 
E)  Switching costs 
A)  Downsizing strategy 
B)  Harvest strategy 
C)  Razor and blade strategy 
D)  Divestment strategy 
E)  Switching costs

Which of the following is NOT a way that standards can emerge in an industry?

Which of the following statements is true about marginal costs in high-technology industries?

Aggressive marketing strategies such as substantial upfront marketing and point-of-sales promotion techniques:

Marginal cost refers to the costs of:

Which of the following is a disadvantage of first movers?

Which of the following statements is true about new entrants in the context of a technological paradigm shift?

Describe the advantages and disadvantages of being a first mover or a follower in a high-tech industry. In your opinion, which strategy is preferable, and why?

The economic benefits of standard creation in an industry include compatibility, clarity to the consumer, reduction of production costs and lowered risks for companies supplying complementary products.

Switching costs, in the context of technology industries, refer to the costs that:

With reference to technical standards, a dominant design refers to a:

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 is NOT a way that standards can emerge in an industry?

Which of the following statements is true about marginal costs in high-technology industries?

Aggressive marketing strategies such as substantial upfront marketing and point-of-sales promotion techniques:

Marginal cost refers to the costs of:

Which of the following is a disadvantage of first movers?

Which of the following statements is true about new entrants in the context of a technological paradigm shift?

Describe the advantages and disadvantages of being a first mover or a follower in a high-tech industry. In your opinion, which strategy is preferable, and why?

The economic benefits of standard creation in an industry include compatibility, clarity to the consumer, reduction of production costs and lowered risks for companies supplying complementary products.

Switching costs, in the context of technology industries, refer to the costs that:

With reference to technical standards, a dominant design refers to a:

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