Exam 4: Standards Battles and Design Dominance

In industries characterized by increasing returns,the rate of return from a product or process increases with the size of its installed base.

Earth Love electronics has developed a lawn mower that runs on solar power.The lawn mowers are available in all neighborhood supermarkets and several electronic stores.According to the "Buyer Utility Map," the company is trying to offer convenience utility in the _____ stage.

Which of the following statements is true of learning effects?

eZone,an online retailer,uses an online ordering and payment system called PayPlus which accepts credit cards and electronic funds transfers.Its payment Web site has a user-friendly interface.The payment system is heavily secured using encryption technology.According to the "Buyer Utility Map," PayPlus is offering _____ utility lever in the purchase stage.

What is absorptive capacity? Why do firms that fall behind the technology frontier find it difficult to catch up?

Network externality returns refers to the value customers reap as a larger portion of the market adopts the same good.

Products that have a large installed base are likely to attract more developers of complementary goods.

Between two technologies competing for dominance,when customers attain their desired level of network externality benefits at lower market share levels:

For a new technology to be successful in a market,it is enough for the new technology's stand-alone utility to exceed that of the incumbent standard.

Clear Vision Inc.has been the market leader for eye-related products,such as eyeglasses and lenses.It has also most recently developed the use of laser technology to correct eye defects.Due to its prior related experiences,it has been successful in recognizing the value of new information and using it to develop new technologies ahead of others.This phenomenon is called:

Money Club and Money ball are online platforms which allow their members to get in touch with people from various business backgrounds.They also facilitate business contracts between their members.Money Club has 6000 members,whereas Money ball has 3500 members.This indicates that:

TechSense,an electronics manufacturing firm,allows its customers to resell old TechSense products at their retail outlets.The firm reuses the metal,wires,and plastic-extracted from these old products-in their new products.This way the company has been able to take waste management to a whole new level.According to the "Buyer Utility Map," the firm is applying environmental friendliness utility lever in _____ stage of buyer experience cycle.

A legally induced adherence to a dominant design is not possible.

Arica Software Inc.is trying to estimate the "installed base" for its software.It is trying to assess the number of:

As firms develop complementary technologies to improve the productivity or ease of utilization of the core technology,the technology becomes less attractive to other firms.

Network externalities cannot arise in markets that do not have physical networks.

The influence of a dominant design can extend beyond its own technology cycle.

Smart Space Inc.makes shoe racks that are portable and can also be dismantled.After purchasing the shoe rack,customers can visit the company's Web site to learn how to fix it,where to place it,and how to dismantle it when not required.According to the "Buyer Utility Map," Smart Space Inc.is aiming to provide simplicity and convenience in the _____ stage of buyer experience.

Joe's Diner,a fast food restaurant,has recently added a children's play area within its premises that allows parents to dine in peace-while their children are safe in the playing area.According to the Kim and Mauborgne's model,Joe's Diner is offering the _____ utility lever during the _____ stage of buyer experience cycle.

Explain why it is considered advantageous if a company's technology is adopted by users ahead of other technologies.