Exam 6: Specifying a Business Model

The Internet has undercut the viability of some older broker models, while creating a landscape where other brokers have emerged.

Which of the following is not true about the Virgin Rail Group?

Economies of ________ are cost savings enjoyed through more efficient production of larger volumes of a product or service.

Product standards are the set of attributes that customers expect in a given market.

Which company pioneered the razor and blades model?

The bulk of many markets revolve around a small number of products, but the total market is much larger.

________ theories help the strategist identify critical aspects of a problematic situation, rather than offer solutions to problems.

A _______ model describes when a customer pays a periodic fee for access to a specified good, service or experience.

Which of the following is not a primary activity in Porter's value chain?

Once a product standard is set, competitors have a clearer idea of what to produce as more is known about customer demands and how efficiency can be gained in meeting those expectations.

_____ innovation is the practice of drawing innovative ideas from multiple sources.

A subscription model can be advantageous as the company can offer its customers an 'upgraded' service for a price.

What is the experience curve? Provide an example.

Which of the following is not currently a dominant player in the game console market?

The game console market is not very competitive.

Which of the following is not a supporting activity in Porter's value chain?

Value chains identify the primary and supporting activities used by an organization to create value for customers.

Which of the following was the first mover in the internet browser industry?

Experience curves graph the relationship between cost and units produced over time.

Standardization occurs when every product or service is produced to specified requirements.