Question 1

Ownership of an industry standard that is protected from imitation by patents and copyrights is a weak organizational resource.

Accepted Answer

A) True 
 B)False

Question 2

In order to work towards winning a format war,a company should:

Accepted Answer

A) refrain from aggressive marketing and advertising. 
B) ensure that there is a limited supply of complementary products. 
C) develop its own killer applications. 
D) keep the prices high even if the customer demand is extremely low. 
E) refrain from cooperating with competitors under any circumstances. 
A) refrain from aggressive marketing and advertising. 
B) ensure that there is a limited supply of complementary products. 
C) develop its own killer applications. 
D) keep the prices high even if the customer demand is extremely low. 
E) refrain from cooperating with competitors under any circumstances.

Question 3

With reference to high-technology industries,which of the following is an example of a technical standard?

Accepted Answer

A) The prices of complementary products 
B) The medium of advertising used for technology products 
C) The color of gadgets produced 
D) The layout of keys on a keyboard 
E) The number of manufacturing units per industry 
A) The prices of complementary products 
B) The medium of advertising used for technology products 
C) The color of gadgets produced 
D) The layout of keys on a keyboard 
E) The number of manufacturing units per industry

Question 4

Network effects arise in industries where the size of the "network" of complementary products is a primary determinant of demand for an industry's product.

Accepted Answer

A) True 
 B)False

Question 5

Write as if you were an outside management consultant and advise a firm attempting to win a format war with a powerful and capable competitor.Give several options.

Accepted Answer

One important consideration in winning a

Question 6

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,in order to make profits,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.

Question 7

Which of the following statements is true about technological paradigm shifts?

Accepted Answer

A) They often do not change the nature of competition in an industry. 
B) They occur when government regulations restrict the use of certain technologies. 
C) They have the potential to threaten the survival of established industries. 
D) They can often be handled by established companies without adopting new strategies. 
E) They strongly deter new entrants. 
A) They often do not change the nature of competition in an industry. 
B) They occur when government regulations restrict the use of certain technologies. 
C) They have the potential to threaten the survival of established industries. 
D) They can often be handled by established companies without adopting new strategies. 
E) They strongly deter new entrants.

Question 8

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

Accepted Answer

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

Question 9

_____ refers to a common set of features in a computer or other machines.

Accepted Answer

A) Paradigm shift 
B) First mover 
C) Public domain 
D) Technical standard 
E) Dominant design 
A) Paradigm shift 
B) First mover 
C) Public domain 
D) Technical standard 
E) Dominant design

Question 10

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 11

When a company is trying to win a format war,it should license its format for a low fee rather than a high fee.

Accepted Answer

A) True 
 B)False

Question 12

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 in order 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 in order 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 13

Technical standards do not play any role in product differentiation.

Accepted Answer

A) True 
 B)False

Question 14

Network effects arise in an industry where:

Accepted Answer

A) the size of the network of complementary products is a primary determinant of demand for an industry's product. 
B) a large network of companies in an industry use the same business model and strategies. 
C) a company is able to adhere to the same technical standards across its network of outlets. 
D) companies network together and lobby for establishing certain technical standards. 
E) companies that are not in favor of a technical standard network together. 
A) the size of the network of complementary products is a primary determinant of demand for an industry's product. 
B) a large network of companies in an industry use the same business model and strategies. 
C) a company is able to adhere to the same technical standards across its network of outlets. 
D) companies network together and lobby for establishing certain technical standards. 
E) companies that are not in favor of a technical standard network together.

Question 15

A set of related technical standards that specify the common set of features or design characteristics of a product is called a dominant design.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

An example of an important complementary asset is a state-of-the-art manufacturing facility.

Accepted Answer

A) True 
 B)False

Question 18

Computer software products have high marginal costs.

Accepted Answer

A) True 
 B)False

Question 19

_____ are applications or uses of a new technology or product that are so compelling that customers adopt them in droves,curbing the demand for competing formats.

Accepted Answer

A) Killer applications 
B) Razor and blade applications 
C) Technical standards 
D) Network effects 
E) Concurrency control applications 
A) Killer applications 
B) Razor and blade applications 
C) Technical standards 
D) Network effects 
E) Concurrency control applications

Question 20

What advice would you give to a firm that wants to exploit network effects?

Accepted Answer

A) Charge heavy license fee for new technology. 
B) Refrain from using technical standards. 
C) Create incentives for other firms to develop complementary products. 
D) Do not use aggressive marketing strategies for killer applications. 
E) Increase switching costs. 
A) Charge heavy license fee for new technology. 
B) Refrain from using technical standards. 
C) Create incentives for other firms to develop complementary products. 
D) Do not use aggressive marketing strategies for killer applications. 
E) Increase switching costs.

Ownership of an industry standard that is protected from imitation by patents and copyrights is a weak organizational resource.

In order to work towards winning a format war,a company should:

With reference to high-technology industries,which of the following is an example of a technical standard?

Network effects arise in industries where the size of the "network" of complementary products is a primary determinant of demand for an industry's product.

Write as if you were an outside management consultant and advise a firm attempting to win a format war with a powerful and capable competitor.Give several options.

Which of the following statements is true about technological paradigm shifts?

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

_____ refers to a common set of features in a computer or other machines.

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

When a company is trying to win a format war,it should license its format for a low fee rather than a high fee.

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

Technical standards do not play any role in product differentiation.

Network effects arise in an industry where:

A set of related technical standards that specify the common set of features or design characteristics of a product is called a dominant design.

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

An example of an important complementary asset is a state-of-the-art manufacturing facility.

Computer software products have high marginal costs.

_____ are applications or uses of a new technology or product that are so compelling that customers adopt them in droves,curbing the demand for competing formats.

What advice would you give to a firm that wants to exploit network effects?

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building 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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

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Exam 7: Strategy and Technology

Ownership of an industry standard that is protected from imitation by patents and copyrights is a weak organizational resource.

In order to work towards winning a format war,a company should:

With reference to high-technology industries,which of the following is an example of a technical standard?

Network effects arise in industries where the size of the "network" of complementary products is a primary determinant of demand for an industry's product.

Write as if you were an outside management consultant and advise a firm attempting to win a format war with a powerful and capable competitor.Give several options.

Which of the following statements is true about technological paradigm shifts?

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

_____ refers to a common set of features in a computer or other machines.

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

When a company is trying to win a format war,it should license its format for a low fee rather than a high fee.

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

Technical standards do not play any role in product differentiation.

Network effects arise in an industry where:

A set of related technical standards that specify the common set of features or design characteristics of a product is called a dominant design.

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

An example of an important complementary asset is a state-of-the-art manufacturing facility.

Computer software products have high marginal costs.

_____ are applications or uses of a new technology or product that are so compelling that customers adopt them in droves,curbing the demand for competing formats.

What advice would you give to a firm that wants to exploit network effects?

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building 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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters