Question 1

Aggressive marketing is a key factor in jump-starting demand to get potential early adopters to bear the switching costs associated with adopting a new innovation.

Accepted Answer

A) True 
 B)False

Question 2

Battles to set and control technical standards in a market are referred to as product positioning.

Accepted Answer

A) True 
 B)False

Question 3

Consider a cost curve with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

Accepted Answer

A) Upward at a 45-degree angle 
B) U-shape 
C) Straight and vertical 
D) J-shape 
E) Straight and flat 
A) Upward at a 45-degree angle 
B) U-shape 
C) Straight and vertical 
D) J-shape 
E) Straight and flat

Question 4

One strategy for success in high-tech industries is to keep prices low in order to increase sales volume.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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 8

In case of emergence of a disruptive technology,established companies should:

Accepted Answer

A) avoid investing in newly emerging technologies that may ultimately become disruptive technologies. 
B) ask customers "Are you interested in this new technology?" 
C) acquire newly emerging companies that are pioneering potentially disruptive technologies. 
D) reduce costs on research and development activities. 
E) avoid commercializing new technologies. 
A) avoid investing in newly emerging technologies that may ultimately become disruptive technologies. 
B) ask customers "Are you interested in this new technology?" 
C) acquire newly emerging companies that are pioneering potentially disruptive technologies. 
D) reduce costs on research and development activities. 
E) avoid commercializing new technologies.

Question 9

Companies that are locked out of a market are those in which consumers are unwilling to bear the switching costs required for them to abandon the established standard and adopt the new one.

Accepted Answer

A) True 
 B)False

Question 10

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 11

A razor-and-blade strategy refers to lowering a company's cost structure.

Accepted Answer

A) True 
 B)False

Question 12

In many high-tech industries,the fixed costs of developing a product are very high,but the costs of producing one extra unit of the product are very low.

Accepted Answer

A) True 
 B)False

Question 13

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

Aggressive marketing is a key factor in jump-starting demand to get potential early adopters to bear the switching costs associated with adopting a new innovation.

Battles to set and control technical standards in a market are referred to as product positioning.

Consider a cost curve with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

One strategy for success in high-tech industries is to keep prices low in order to increase sales volume.

Which of the following is a disadvantage of first movers?

Marginal cost refers to the costs of:

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?

In case of emergence of a disruptive technology,established companies should:

Companies that are locked out of a market are those in which consumers are unwilling to bear the switching costs required for them to abandon the established standard and adopt the new one.

An advantage of being a first mover is that:

A razor-and-blade strategy refers to lowering a company's cost structure.

In many high-tech industries,the fixed costs of developing a product are very high,but the costs of producing one extra unit of the product are very low.

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

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

Exam 7: Strategy and Technology

Aggressive marketing is a key factor in jump-starting demand to get potential early adopters to bear the switching costs associated with adopting a new innovation.

Battles to set and control technical standards in a market are referred to as product positioning.

Consider a cost curve with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

One strategy for success in high-tech industries is to keep prices low in order to increase sales volume.

Which of the following is a disadvantage of first movers?

Marginal cost refers to the costs of:

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?

In case of emergence of a disruptive technology,established companies should:

Companies that are locked out of a market are those in which consumers are unwilling to bear the switching costs required for them to abandon the established standard and adopt the new one.

An advantage of being a first mover is that:

A razor-and-blade strategy refers to lowering a company's cost structure.

In many high-tech industries,the fixed costs of developing a product are very high,but the costs of producing one extra unit of the product are very low.

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

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