Question 1

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 2

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

Accepted Answer

A)  industries have to incur in order to adhere to technical standards. 
B)  companies have to 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 in order 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 have to incur in order to adhere to technical standards. 
B)  companies have to 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 in order 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 3

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 4

Technical standards in high-technology industries are:

Accepted Answer

A)  specifications developed by each producing company for its own products and product components. 
B)  specifications that producers adhere to when making a product or a component. 
C)  product specifications imposed by the federal government. 
D)  product features desired by consumers. 
E)  general guidelines proposed by industry leaders. 
A)  specifications developed by each producing company for its own products and product components. 
B)  specifications that producers adhere to when making a product or a component. 
C)  product specifications imposed by the federal government. 
D)  product features desired by consumers. 
E)  general guidelines proposed by industry leaders.

Question 5

Which of the following is true of first movers?

Accepted Answer

A)  The first mover cannot be able to establish brand loyalty. 
B)  The first mover has no opportunity to exploit network effects and positive feedback loops. 
C)  The first mover cannot create switching costs for its customers to deter rivals. 
D)  The first mover that creates a revolutionary product is in a monopoly position. 
E)  Being a first mover guarantees instant success. 
A)  The first mover cannot be able to establish brand loyalty. 
B)  The first mover has no opportunity to exploit network effects and positive feedback loops. 
C)  The first mover cannot create switching costs for its customers to deter rivals. 
D)  The first mover that creates a revolutionary product is in a monopoly position. 
E)  Being a first mover guarantees instant success.

Question 6

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.

Question 7

A technical standard helps to guarantee compatibility between products and their complements.

Accepted Answer

A) True 
 B)False

Question 8

With reference to high-technology industries, which of the following statements is true about technical standards?

Accepted Answer

A)  They emerge because there are economic benefits associated with them. 
B)  They cause compatibility problems between products and their complements. 
C)  They can create a lot of confusion in the minds of consumers. 
D)  They often result in higher production costs. 
E)  They increase the risks associated with supplying complementary products. 
A)  They emerge because there are economic benefits associated with them. 
B)  They cause compatibility problems between products and their complements. 
C)  They can create a lot of confusion in the minds of consumers. 
D)  They often result in higher production costs. 
E)  They increase the risks associated with supplying complementary products.

Question 9

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 10

Technical standards are often set by cooperation among businesses, without government help.

Accepted Answer

A) True 
 B)False

Question 11

_____ 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 12

One important advantage of being a first mover is that it guarantees success.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

Venus Corp. a high-technology, gadget-making company has introduced a gaming console with attractive features. Even though the console is priced modestly and has better features than the existing ones, it has failed as many customers are apprehensive about buying it. In order to create demand, Venus Corp. should:

Accepted Answer

A)  price the console extremely high. 
B)  create its own set of technical standards. 
C)  ensure that there are adequate complementary products. 
D)  use minimalistic and subtle advertising and marketing strategies. 
E)  avoid licensing the format to other companies. 
A)  price the console extremely high. 
B)  create its own set of technical standards. 
C)  ensure that there are adequate complementary products. 
D)  use minimalistic and subtle advertising and marketing strategies. 
E)  avoid licensing the format to other companies.

Question 16

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

Accepted Answer

A)  Embryonic 
B)  Growth 
C)  Shakeout 
D)  Maturity 
E)  Decline 
A)  Embryonic 
B)  Growth 
C)  Shakeout 
D)  Maturity 
E)  Decline

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Aggressive marketing in the context of format wars:

Accepted Answer

A)  deters early adopters. 
B)  helps a company jump-start demand. 
C)  results in lower emphasis on killer applications. 
D)  does not encompass point-of-sales promotion techniques. 
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)  does not encompass point-of-sales promotion techniques. 
E)  usually triggers a negative feedback loop.

Question 19

Cell phone technology is replacing traditional wired phone technology. This is an example of a(n):

Accepted Answer

A)  first-mover advantage. 
B)  technological paradigm shift. 
C)  format war. 
D)  complementary product. 
E)  embryonic industry. 
A)  first-mover advantage. 
B)  technological paradigm shift. 
C)  format war. 
D)  complementary product. 
E)  embryonic industry.

Question 20

Antibody Solutions is a company that specializes in cell-bank storage, and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

Accepted Answer

A) True 
 B)False

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

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

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

Technical standards in high-technology industries are:

Which of the following is true of first movers?

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

A technical standard helps to guarantee compatibility between products and their complements.

With reference to high-technology industries, which of the following statements is true about technical standards?

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.

Technical standards are often set by cooperation among businesses, without government help.

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

One important advantage of being a first mover is that it guarantees success.

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

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

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

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

Aggressive marketing in the context of format wars:

Cell phone technology is replacing traditional wired phone technology. This is an example of a(n):

Antibody Solutions is a company that specializes in cell-bank storage, and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

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

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

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

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

Technical standards in high-technology industries are:

Which of the following is true of first movers?

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

A technical standard helps to guarantee compatibility between products and their complements.

With reference to high-technology industries, which of the following statements is true about technical standards?

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.

Technical standards are often set by cooperation among businesses, without government help.

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

One important advantage of being a first mover is that it guarantees success.

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

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

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

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

Aggressive marketing in the context of format wars:

Cell phone technology is replacing traditional wired phone technology. This is an example of a(n):

Antibody Solutions is a company that specializes in cell-bank storage, and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

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